By: Noah Bonn Austrians and Libertarians are well-established critics of central banking in general, and emergency monetary stimulus in particular. There is near universal agreement that Alan Greenspan should not have cut rates following the Dot-Com Bubble, and that Ben Bernanke and Janet Yellen should not have quadrupled the monetary base following the Housing Bubble.1 Yet […]
Federal Reserve
The Great Inflation – How COVID-19 stimulus will trigger a spike in price inflation
By: Andrew Moran The big bazookas have been fired, the printing presses are running overtime, and the addicts on stock exchanges all over the world have received their narcotic injections to stay afloat until their next fix. Global institutions have shown the cards they had meant to play during the next significant financial crisis. They […]
Federal Reserve warns 47 million jobs lost, 32% unemployment rate due to coronavirus
The U.S. labor market is going to be a blood bath by the time everything peaks, warns the Federal Reserve. In a new analysis by the central bank, the Wuhan coronavirus economic crisis could cost 47 million jobs and raise the unemployment rate to 32 percent. Because there are 67 million jobs at risk of […]
JAPANIFICATION: Federal Reserve could buy stocks as part of QE infinity
The Japanification of the United States continues? The Federal Reserve might take a page out of the playbook from the Bank of Japan (BoJ) and the People’s Bank of China (PBoC) and become a shareholder in American companies. Last week, the U.S. central bank announced quantitative easing infinity that consists of buying assets without any […]
U.S. sees negative interest rates in one- and three-month Treasurys
Here is another interesting development the coronacrisis: subzero yields on government debt. On Wednesday morning, the yields on the one-month and three-month Treasury bills fell below zero. The last time this happened was more than four years ago when both bonds briefly slipped to -0.002 percent. The U.S. now joins Europe, Japan, and Sweden with […]