The Fed has three options with its $4.3 trillion balance sheet. 1. Don’t worry about it. 2. Sell the Bonds. 3. Stop reinvesting maturing bonds.Read More
Articles are about big issues affecting readers, individual or corporate.
The bigger a central bank balance sheet, the more the government is involved and the less capitalistic an economy becomes.Read More
We’re hearing a lot of talk in the financial press and on Wall Street about the potential for the yield curve to invert.Read More
Is the Reduction of the Fed’s Balance Sheet a Ticking Time Bomb? Two Financial Heavyweights Weigh In
A dispute is brewing in the financial press between two financial heavyweights: Paul Sheard, Executive Vice President and Chief Economist of S&P Global, and Urjit Patel, Governor of the Reserve Bank of India.Read More
Starting in 2009, the Federal Reserve added a couple trillion dollars of new money to the economy through a quantitative easing program of buying bonds from banks and non-banks. Now the Feds reportedly want to reduce their balance sheet by selling those bonds.Read More
The Federal Reserve, a.k.a. “the Fed,” has kept the federal funds rate at zero for seven years now. But after a strong monthly jobs report in October, where the economy created 271,000 new jobs and the unemployment fell to 5%, the Fed may finally be ready to raise it.Read More