2019-11-15 13:34:00 Fri ET
federal reserve monetary policy treasury dollar employment inflation interest rate exchange rate macrofinance recession systemic risk economic growth central bank fomc greenback forward guidance euro capital global financial cycle credit cycle yield curve
The Economist offers a special report that the new normal state of economic affairs shines fresh light on the division of labor between central banks and governments. The recent U.S. economic outlook combines full employment with low inflation, and this rare combination accords with the Federal Reserve dual mandate of maximum sustainable employment and price stabilization. The New Keynesian Phillips Curve becomes flat in recent times, and there is no inexorable trade-off between inflation and unemployment. The U.S. unemployment rate reaches 3.5% or the lowest level since 1969. The core inflation rate hovers in the range of 1.5%-1.7% or well below the 2% target inflation rate. On the one hand, the Federal Reserve may continue to reduce the interest rate to help sustain the U.S. economic expansion and stock market rally in response to a vocal president.
On the other hand, the dovish interest rate cuts suggest that the U.S. central bank may have fewer monetary policy levers to cope with the next economic recession. Meanwhile, U.S. Treasury continues to offer Americans fiscal stimulus packages in the generic form of both tax incentives and infrastructure expenditures. Whether fiscal deficits can cause higher inflation remains a major economic policy concern.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2018-06-04 08:38:00 Monday ET
Microsoft acquires GitHub, a software development platform that has been widely shared-and-used by more than 28 million programmers worldwide. GitHub's
2020-08-12 07:25:00 Wednesday ET
Most sustainably successful business leaders make a mark in the world, create a positive impact, and challenge the status quo. Jerry Porras, Stewart Emer
2018-12-23 13:39:00 Sunday ET
The House of Representatives considers a government expenditure bill with border wall finance and therefore sets up a shutdown stalemate with Senate. As fre
2019-02-25 12:41:00 Monday ET
Chicago financial economist Raghuram Rajan views communities as the third pillar of liberal democracy in addition to open markets and states. Rajan suggests
2019-03-07 12:39:00 Thursday ET
A physicist derives a mathematical formula that success equates the product of both personal quality and the potential value of a random idea. As a Northeas
2019-07-09 15:14:00 Tuesday ET
The Chinese new star board launches for tech firms to list at home. The Nasdaq-equivalent new star board serves as a key avenue for Chinese tech companies t