Governor DeSantis recently took aim at the Federal Reserve, presumably to bolster his national-issues profile ahead of announcing a run for the presidency, which he is expected to do in […]
Tag: Monetary Policy
What’s To Blame for the Banking Crisis?
In the past month, we’ve seen some of the largest bank failures since the Great Financial Crisis, with Silicon Valley Bank (SVB) leading the way, followed by Signature Bank and […]
Interest Rates, the Money Supply, and Say’s Law
Andy Kessler at the Wall Street Journal wrote an interesting column about the perils of stimulating demand in a supply-constrained environment. He argues, correctly, that expansionary monetary policy is more […]
The Fed Is Bankrupt
Federal Reserve Chair Jerome Powell recently testified before Congress on the current state of the US economy. In addition to monetary policy, Powell was questioned about the Fed’s regulatory proposals […]
Inflation Slowed in February, But Remained High
After two worrisome months, we are finally getting some better news on the inflation front. The Personal Consumption Expenditures Price Index (PCEPI) grew at a continuously compounded annual rate of […]
Silicon Valley Bank: Mismanagement Is Not an Excuse for Inefficient Regulation
According to Michael Barr, the vice chair for supervision at the Federal Reserve, Silicon Valley Bank’s failure was a “textbook case of mismanagement.” Perhaps that’s unsurprising. Regulators are unlikely to […]
Have We Crested the Inflation Wave?
Finally, some welcome news on the inflation front: Core PCEPI inflation is down to 4.6 percent year-over-year, and 0.3 percent month-over-month, which is 3.6 percent annualized. PCEPI growth has fallen […]
Fed Raises Rate, But Signals Potential Pause in May
The Federal Open Market Committee (FOMC) moved forward with an anticipated 25-basis-point increase in its federal funds rate target on Wednesday. It no longer, however, “anticipates that ongoing increases in […]
Money and Inflation Are Still Related
“There is perhaps no empirical regularity among economic phenomena that is based on so much evidence, for so wide a range of circumstances,” Milton Friedman observed in 1989, “as the […]
Monetary Policy and that Old-Time Fiscal Religion
The ongoing debt-ceiling debate has brought concerns about the sustainability of US fiscal policy to the forefront of public discussion once again. While it may be tempting to blame current […]