Tag Archives: monetary policy

Why Fed Chair Powell’s a Laughingstock

Powell believes this ”technical adjustment” will compel banks with excess reserves parked at the Fed to pursue better returns elsewhere.  Powell also believes lowering the IOER rate will keep the federal funds rate from deviating above its upper range. Continue reading

Posted in Economy, MN Gordon | Tagged , , , , | 4 Comments

Unsolicited Advice to Fed Chair Powell

Behind closed doors, President Trump and Fed Chair Jay Powell are in freak out mode.  President Trump wants lower interest rates and artificial stimulus to fabricate GDP growth into the 2020 election year.  His prospects for a second term in office depend on it. Fed Chair Powell knows the economy’s toast.  Annualized GDP growth for the first quarter of 2019 was recently estimated at just 1.3 percent.  But he cannot yet admit it.  Specifically, he cannot cut rates just yet without triggering a market panic. Continue reading

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Why Monetary Policy Will Cancel Out Fiscal Policy

Good cheer has arrived at precisely the perfect moment.  You can really see it.  Record stock prices, stout economic growth, and a GOP tax reform bill to boot.  Has there ever been a more flawless week leading up to Christmas? … Continue reading

Posted in Government Debt, MN Gordon | Tagged , , , , | 7 Comments

Janet Yellen’s 78-Month Plan for the National Monetary Policy of the United States

Adventures in depravity are nearly always confronted with the unpleasant reality that stopping the degeneracy is much more difficult than starting it.  This realization, and the unsettling feeling that comes with it, usually surfaces just after passing the point of … Continue reading

Posted in Inflation, MN Gordon | Tagged , , , , | 1 Comment