Fed Following

By Econ70 | 06/18/2014
A man in a suit and tie standing on stage.

At today’s press conference, Fed Chairwoman Yellen did away with forward guidance. Instead, she suggested that the Fed will rely on an array of lagging economic indicators to set policy. She is signaling that the Fed will keep interest rates exceptionally low and allow inflation to systematically exceed 2%; appropriately dovish policies. Separately, her suggestion…

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Increasing Interest

By Econ70 | 06/16/2014
A picture of the logo for direct independent distributors of america.

While expecting Q1 GDP growth to be revised down to an annualized rate of -2% from the current -1%, expect the Fed to keep tapering on autopilot and reduce it by another $10 billion to $35 billion/month at the conclusion of the June 17-18 meeting. Markets will now be laser-focused on how and more importantly…

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Fed Head Fiasco

By Econ70 | 09/16/2013
A man standing at a podium with his hands raised.

The biggest loser in the current Fed Chairman Sweepstakes is the Fed. Simply considering Summers for the head Fed job politicizes a job that should be non-partisan. Arthur Burns, appointed by Nixon in 1970, was the last Chairman that was closely identified with one political party and he was a disaster. All evidence overwhelmingly shows…

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