Labor market remains strong. Even so, the Fed should cut rates in September (EPI) Two things are true right now for the U.S. economy: These might strike some as being in tension, normally we want the Fed to cut interest rates to stimulate a weak economy. Why then, if the labor market is quite strong, […]
Two excellent short and very readable mini articles (to be redundant). Both pieces are pointing to a direction the Fed should take in the next year or sooner with regard to Climate Change. It is doubtful they will do so until catastrophe hits. What is a few $billion more in spending, right??? This aspect of […]
A long and interesting read. And yes on paying the price. Article by David and Lindsay on what is happening today with increasing pricing across the economy. You can experience it in just about every part of the economy. Further on down this article the authors say, this is more about pricing than supply chain. […]
– by New Deal democrat Let me tie this morning’s report on April existing home sales into my two last posts (Part 1 and Part 2), which concerned the huge role that shelter prices, and the underlying shortfall in housing capacity, have in the continued elevation in overall consumer prices. So let’s start by looking […]
The Fed’s Target Is Workers, Project Syndicate, James K. Galbraith, January 2022 A year and a half later and the Fed is still trying to slay the dragon. They stab it with their steely knives, But they just can’t kill the beast. So it seems, the Feds losing battle is with Labor, direct Labor is […]
Editorial by EMPLOY AMERICA on The Fed Chair’s 25bp hike which are aligning with the Fed’s consensus and market beliefs and Powell’s expectations of continuing inflation risks. Gotta make sure the chance of inflation is really dead. Poking at it with 25bp hike now, making sure it is dead, and two more rounds of the […]
A note on inflation and whether the Fed should continue to raise rates – and whether it is “behind the curve” No important economic releases today (july 18), and almost no reporting by States as to COVID counts over the weekend, so let’s back up and take a look at something that’s been simmering on […]
The President of the Federal Reserve Bank of Philadelphia: We have been putting out credit in a period of depression, when it is not wanted and could not be used, and will have to withdraw credit when it is wanted and can be used. But this is not Charles I. Plosser, no matter how similar […]
by Mike Kimel A Simple Question about NGDP Targeting It seems that a big part of the econosphere these days talks about NGDP targeting. Translating this into English, a number of economists believe the Fed should be adjusting monetary policy to achieve a desired level of nominal GDP in any given year. To be very […]
The Federal Reserve Bank of St. Louis, without whose FRED database and Excel Add-in Economics Bloggers (and Matt Yglesias) would be Even More Boring, has been running a series of Discussions explaining why the Fed is incompetent—er, Why They Don’t Follow Their Dual Mandate—er, well, something about how They’re Doing The Best They Can.* The […]