Macro Economics

Time for the Fed to Pause

There are more reasons for the Fed to abide by Neel Kashkari’s advice than he articulates in “Pause Interest-Rate Hikes to Help the Labor Force Grow (October 26, 2018).”  

Returning to the "Old Normal" 

In "Can America Grow Again?" (WSJ May 30, 2018), the four contributors to the debate missed perhaps the most important contributor to the decline in US GDP growth after the Great Recession:  The risk-free interest rate dropped to zero and stayed there for nine years.  Because M3 is $20 trillion, risk-free interest rates of 5% on deposits, checking accounts, and money-market

The cause of the loan-growth rut

2017 is the worst year for business-loan growth since 2010, according to "Loan Growth is in a Rut” (WSJ, 11/27/17).  2017 also happens to be when the Fed rate hikes started taking hold.  Why would Fed rate hikes reduce loan issuance? 

Why US growth is lackluster

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