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.
2019-02-05 10:32:00 Tuesday ET

President Trump remains optimistic about the Sino-American trade war resolution of both trade deficit eradication and tech transfer enforcement. Trump now s
2018-07-07 10:33:00 Saturday ET

The east-west tech rivalry intensifies between BATs (Baidu, Alibaba, and Tencent) and FAANGs (Facebook, Apple, Amazon, Netflix, and Google). These Sino-U.S.
2020-02-19 14:35:00 Wednesday ET

The U.S. bank oligarchy has become bigger, more profitable, and more resistant to public regulation after the global financial crisis. Simon Johnson and
2019-08-07 08:32:00 Wednesday ET

Our fintech finbuzz analytic report shines fresh light on the current global economic outlook. As of Summer-Fall 2019, the current analytic report focuses o
2017-01-03 03:26:00 Tuesday ET

President-Elect Donald Trump wants Apple and its tech peers to consider better and greater high-tech job creation in America. Apple has asked its primary
2019-10-09 16:46:00 Wednesday ET

IMF chief economist Gita Gopinath indicates that competitive currency devaluation may be an ineffective solution to improving export prospects. In the form