Fed can’t find inflation, but let’s raise rates to help the banks

The Federal Reserve — headed now by Jay Powell — released the minutes from the last meeting in March. The Fed is feeling that inflation, which has been under 2% annually for many years, is about to grow.

There is little evidence of inflation, but the Fed says that since Trump’s tax cuts gave thousands of workers a bonus and the raising of minimum wage, inflation will come and the Fed should continue raising rates. Continue reading

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New Fed sheriff will not show all his cards

New Federal Reserve Chairman Jerome Powell is scheduled to give his first views of the economy Tuesday to House Finance Committee. He then will speak to the Senate panel on Thursday.

While Wall Street analysts do not expect much in the way of policy changes from ex-Fed head Janet Yellen, I have to say that’s conflicted thought — hoping for calm. Continue reading

Gold, bitcoin loving the sturm und drang of markets

Before you could figure out how the market would react this morning to flat retail sales for the holiday quarter, Dow futures were up bigly on Wednesday.

Then before you could look up the definition of inflation this morning, the market was down “bigerly” on the Consumer Price Index report. Continue reading

New trioka at the Fed may get you(r) interest

What happens when Cerberus — the three-headed beast guarding the gates of hell — loses all of its heads?

We’ll find out early spring of next year as The Federal Reserve could be without its present Chairperson, Vice Chairperson and head of the New York Fed. Continue reading

An open letter to Chair Yellen on the inflation mystery

Let me take this post to write an open letter to Fed chief Janet Yellen to explain what is going on in the US economy. It appears she needs it

At her press conference on Wednesday Yellen said of the inflation rate being suppressed. “I will not say that the committee clearly understands what the causes are of that.”

Dear Chair Yellen, Continue reading