Tag Archives: federal reserve
Why the FOMC Wants to Cut Rates
Capital follows a wide-ranging lifecycle. First it is imagined. Then it is produced. Later it is consumed. Ultimately, it is destroyed. How exactly this all takes place involves varying and infinite undulations over decades and centuries. Continue reading
How to Outperform the Stock Market in 2024
Following the federal open market committee (FOMC) meeting on December 12 and 13, 2023, the Federal Reserve announced it would be holding the federal funds rate within a range of 5.25 to 5.5 percent. The Fed, by way of its dot plot, also signaled there would be three 25-basis point rate cuts in 2024. Continue reading
How Bankers are Exploiting the Fed’s BTFP at Your Expense
American bank depositors sincerely trust the Federal Deposit Insurance Corporation (FDIC). They are as certain as the sky is blue, that the FDIC will protect the money in their bank accounts. Thus, they do not withdraw dollars from their accounts in a banking crisis. Continue reading
Death to Savers
The Federal Reserve artificially suppressed interest rates from roughly 2008 to 2022. It did so by creating $8 trillion of credit out of thin air to buy Treasuries and mortgage-backed securities. This pushed stock, bond, and real estate markets well beyond what the underlying economy could support. Falsified interest rates also birthed wild objects of speculation. Continue reading
