A collective effort to deliver a policy upgrade is needed urgently to face up to rising challenges in an uncertain world, to ensure financial stability and better growth prospects. Three percent of global output is at stake.
The Federal Reserve did not raise interest rates last month as many expected. Their reasons were understandable: one in 10 Americans remains unemployed, underemployed or so discouraged that they have fallen out of the labor force; and inflation remains consistently near zero.
Last week, Republican presidential candidate Donald Trump released his plan for changing the tax code. Many of the reports on the plan commented on the growth assumption and pointed out that few, if any, economists took it seriously. As a practical matter, we have seen this story before.
It's all very exciting isn't it? Well, not when you look at a weekly chart, like this one from Dave Fry but, when you look at and ...
In a speech last week, Federal Reserve Board Chair Janet Yellen inadvertently told us why Congress should set a 4 percent unemployment target for the Fed in its conduct of monetary policy, as is proposed in a new bill put forward by Michigan Representative John Conyers. The context was Yellen's dismissal of such a target. Certainly the Federal Reserve Board cannot just pick any number and say it will get the unemployment rate to that level. There are limits posed by the economy that can prevent the Fed from hitting an unemployment rate target despite its best efforts. However, this is also true of the 2.0 percent inflation target that the Fed has chosen for itself as a basis for policy over the last decade. But the fact is that the Fed cannot simply set any inflation rate it likes.
Investors, traders, savers and homebuyers - young and old - were fixated on last week's Federal Reserve interest rate announcement, especially in the wake of recent market volatility.
Last May, I mused on the possibility of a tech bubble and projected that the NASDAQ would plateau for the remainder of 2015. Midway through these expectations, let's calibrate my crystal ball...
What is the reason Republicans have become the party of anti-intellectuals? The danger is that it may drown out any intelligent discourse about the most important issues of our day. It's driving at least one of our political parties into insanely ridiculous positions, at the moment.
We caught a very quick ride down to 1,175 where the profit on two contracts was $2,500 on /TF and $2,000 on /YM and I sent out another tweet at 3:30 noting we called for taking the quick gains off the table - making $2,500 in 25 minutes - nice work if you can get it.
Inflation won't happen in the near future because it's as much due to misguided government policies by the modern Austerians that have stopped eurozone growth by demanding draconian cuts in government spending and budget deficits that would create growth.
Wages are rising, finally, and prices are not--a rare confluence in recent decades. American workers need this to continue as long as possible. So do their bosses, in fact, because workers are the consumers that drive economic growth and thus corporate profits.
This week marks the 7th anniversary of the collapse of Lehman Brothers. The anniversary of this collapse, September 15th, is the day set aside to ridicule the people who warned of a second Great Depression if the Treasury Department didn't rescue the Wall Street banks.
Will those edgy portfolio investors stampede indiscriminately out of--and wreak havoc among--middle- and low-income countries if the Fed lifts interest rates this September, for the first time in almost a decade?
The Federal Reserve Board leadership has been stressing the virtue of "transparency" regarding the factors it is considering as it approached the first increase in interest rates since 2006, potentially at it's mid-September meeting.
Their policies have to maximize the purchasing power of consumers that power most economic growth. If consumers can't or won't spend more, then our economy can't grow as it should.
Jobs reports are often highly anticipated by investors, but the August jobs report held even greater significance than usual. Investors hoped for a clear signal that the Federal Reserve would be expected either to raise rates during their September meeting or put off a rate hike until at least December.