Posts Tagged ‘ Federal Reserve ’

Will the Fed let innovation work its magic?

April 21, 2015
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Edin Mujagic  

"Sometimes one finds true gems in one's archives. Recently I came across a speech by then-chairman of the Fed, Ben Bernanke, from May 18, 2013. It was the commencement speech at Bard College at Simon's Rock, in Great Barrington, Massachusetts. In it, Bernanke chose to forget for a while the dire straits the Western economy is in and focused on prospects for economic growth in the long run, which he defined as 'measured in decades, not months or quarters.' In short, Bernanke focused on scientific and technological progress, more commonly described as innovation." (04/20/15)

https://mises.org/library/will-fed-let-innovation-work-its-magic  

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Did the Fed cause the sub-prime boom?

April 19, 2015
posted by

Scott Sumner EconLog
by Scott Sumner  

"Monetary policy is not a surgical tool that can be used to affect specific sectors of the economy. It can only affect any given sector by affecting the overall economy (NGDP.) Thus in 1928 and 1929 when the Fed tried to use higher interest rates to slow the stock market boom, and the policy was a complete failure until rates were raised so high that NGDP began plunging. Then stocks crashed. It wasn't the high interest rates, it was the falling NGDP. If Fed policy contributed to the subprime boom, it was not from low interest rates, but rather excessive NGDP growth." (04/18/15)

http://econlog.econlib.org/archives/2015/04/did_the_fed_cau.html  

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Is the Fed allowed to create GDP prediction markets?

April 15, 2015
posted by

Scott Sumner EconLog
by Scott Sumner  

"Some Keynesian theories deny that monetary policy can impact expected NGDP growth, when at the zero bound. Real Business Cycle theory suggests that a monetary policy shock that impacted NGDP growth expectations would not impact RGDP growth expectations. Market monetarism suggests that monetary shocks can impact both NGDP and RGDP growth expectations at the zero bound. I believe that it is clearly within the Fed's mandate to spend a modest sum of money setting up NGDP and RGDP prediction markets. But it doesn't matter what I think it matters what Congress thinks, and what the Fed thinks that Congress thinks." (04/15/15)

http://econlog.econlib.org/archives/2015/04/can_the_fed_cre.html  

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Ben Bernanke’s latest defense of the Fed’s failures

April 13, 2015
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Brendan Brown  

"Fed officials have been busy lately spreading the view that incessantly low interest rates are symptomatic of a still-dim economic reality rather than a result of their own monetary experimentation. Indeed they are full of self-praise for not having been hasty to raise rates given the overwhelming evidence that the natural or neutral level is indeed very low. They even weep for the plight of the small saver. But the tears are crocodile tears so long as the designers and implementers of the wildest monetary experiment in contemporary US history continue to deny in this way their lead role in creating the interest income famine." (04/13/15)

http://tinyurl.com/p9exeqm  

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Our current illusion of prosperity

April 1, 2015
posted by

Ludwig von Mises Institute Ludwig von Mises Institute    

"President Obama and Fed Chair Janet Yellen have been crowing about improving economic conditions in the US. Unemployment is down to 5.5 percent and growth in 2014 hit 2.2 percent. Journalists and economists point to this improvement as proof that quantitative easing was effective. Unfortunately, this latest boom is artificial and has been built by adding debt on top of debt." (04/01/15)

http://mises.org/library/our-current-illusion-prosperity  

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Why is the Fed punishing my parents?

March 30, 2015
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Shawn Ritenour  

"In September 1993, President Bill Clinton reassured his radio audience that 'if you work hard and play by the rules, you'll be rewarded with a good life for yourself and a better chance for your children.' Picking up that theme over eighteen years later, President Barack Obama affirmed that 'Americans who work hard and play by the rules every day deserve a government and a financial system that does the same.' The trouble is neither the government nor the financial system backed by the Federal Reserve rewards people like my parents, who have worked hard and played by the rules their entire lives, only to have their savings wither away." (03/30/15)

http://mises.org/library/why-fed-punishing-my-parents  

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The Federal Reserve Bank must be destroyed!

March 19, 2015
posted by

Mises Canada
by Patrick Barron  

"Once the politicians realized that the Fed could print money at will, the genie was out of the bottle. Money growth did expanded at a modest rate for a few decades, due mainly to the efforts of prudent men such as Fed Chairman William McChesney Martin (1951 to 1970) and fiscally conservative politicians such as President Dwight Eisenhower (1953 to 1961). However, it was inevitable that less prudent men, such as President Lyndon Johnson and all Fed chairm[e]n with the exception of Paul Volcker, would rise to power on their promises to fund all manner of government programs with what was now seen to be unlimited money." (03/19/15)

http://mises.ca/posts/blog/the-federal-reserve-bank-must-be-destroyed/  

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Fed sets stage for rate hike but downgrades outlook

March 18, 2015
posted by

USA Today USA Today    

"The Federal Reserve on Wednesday set the stage for its first interest rate hike since 2006, signaling its confidence in the U.S. economy. Yet the Fed slightly downgraded its economic outlook, saying that growth 'has moderated somewhat' because of weak export growth and a sluggish housing market, among other factors. It said it will raise its benchmark short-term rate, now near zero, only when the labor market improves further and inflation prospects pick up from the current meager pace." (03/18/15)

http://tinyurl.com/o7j4qjj  

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Yes we can … audit the Fed!

March 16, 2015
posted by

Campaign For Liberty Campaign For Liberty
by Matthew Hawes  

"During C4L's 'Liberty Forum' at the 2009 Conservative Political Action Conference, we announced our young organization's top legislative priority -- achieving an audit of the Federal Reserve. Dr. Ron Paul had then recently reintroduced the bill as H.R. 1207, with 11 cosponsors. No one knew for sure what to expect, but we heard plenty of opinions on what would happen -- including doubts or outright disbelief that the bill would ever move. But Campaign for Liberty's second-to-none grassroots members refused to give in to the naysayers and went to work, pouring pressure on their elected officials and spreading the word about why our historic bill was desperately needed." (03/15/15)

http://www.campaignforliberty.org/yes-we-can-audit-the-fed  

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Don’t be fooled by the Federal Reserve’s anti-audit propaganda

March 9, 2015
posted by

Ron Paul Campaign For Liberty
by Ron Paul  

"In recent weeks, the Federal Reserve and its apologists in Congress and the media have launched numerous attacks on the Audit the Fed legislation. These attacks amount to nothing more than distortions about the effects and intent of the audit bill. Fed apologists continue to claim that the Audit the Fed bill will somehow limit the Federal Reserve’s independence. Yet neither Federal Reserve Chair Janet Yellen nor any other opponent of the audit bill has ever been able to identify any provision of the bill giving Congress power to dictate monetary policy. The only way this argument makes sense is if the simple act of increasing transparency somehow infringes on the Fed’s independence." (03/08/15)

http://tinyurl.com/nsekn64  

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US banks clear first phase of Fed stress testing

March 6, 2015
posted by

USA Today USA Today    

"The nation's 31 largest banks stand to shed close to half a trillion dollars if the economy slumped into a deep depression, the Federal Reserve Board said on Thursday. But the banks -- a group that includes Citigroup, JP Morgan Chase, Wells Fargo and Goldman Sachs -- appear better positioned than ever to handle such loss, Fed data show. Indeed, for the first time since the Fed has been conducting its so-called stress tests on banks with more than $50 billion in assets, not a single bank fell below the Fed's capital requirements, according to the first phase of the Fed's stress test results released Thursday." (03/05/15)

http://tinyurl.com/llbz59y  

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What to do while waiting to end the Fed

February 26, 2015
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by John P Cochrane  

"Central banks in general, and the Fed in particular, are here to stay for the foreseeable future. Given Austrians most fully understand the evils perpetuated on the economy by specially privileged fractional reserve banks supported by a central bank, Austrians most definitely should contribute to second-best solutions a la Rosen and Ravier. But one must also keep in mind good central bank policy is just bad policy that could have been worse. The best long-term outcome is open competition in currencies that have the potential to reduce central bank influence and improve central bank performance." (02/25/15)

http://mises.org/library/what-do-while-waiting-end-fed  

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What economic elites don’t want you to know about crashes

February 12, 2015
posted by

Mises Canada
by Doug French  

"From his analysis, Bernanke thinks the central bank tightened the money supply in the '30s to cause the Great Depression. That lesson prompted him after the 2008 crash to unleash a barrage of rounds of quantitative easing and an Operation Twist while quadrupling the central bank's balance sheet to 'stabilize the financial system.' Jim Grant sees it differently, thinking Bernanke and company should have kept their hands off the money supply and interest rates. Grant, the financial world's foremost wordsmith, provides the depression of 1920–21 as his evidence. His book The Forgotten Depression: 1921: The Crash That Cured Itself chronicles how the market works marvels if left alone." (02/12/14)

http://tinyurl.com/oq5vx6q  

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Fed acts wreck the economy

February 11, 2015
posted by

The Price of Liberty
by Bradley Harrington  

"The justification for the Federal Reserve Act was banking failures -- nearly a thousand in the panic years of 1893 and 1907-1908 -- yet in the 20-year period after the establishment of the Fed, well over 10,000 banks collapsed. The 'cure,' clearly, was worse than the alleged disease. So, through the Fed, government essentially took over the banking system, while the destruction of the gold-based dollar hammered the final nails into the coffin of a once-free economy and paved the way for the Great Inflation in the decades to follow." (02/11/15)

http://www.thepriceofliberty.org/?p=6935  

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Loose Fed, scared bank directors

January 29, 2015
posted by

Mises Canada
by Doug French  

"The Fed's balance sheet now foots to nearly $4.5 trillion, a great leap from early July 2008, when its total assets were less than $900 billion. Interest rates have been held just above zero since then as well, all in an attempt to jumpstart the economy. But while monetary policy has been beyond promiscuous, bank regulation has been, and continues to be, in Jim Grant's word, 'asphyxiating.' Dick Bove, who analyzes banks for Rafferty Capital Markets and seems terminally bullish on the industry, says banks have been essentially nationalized in the U.S." (01/28/15)

http://mises.ca/posts/blog/loose-fed-scared-bank-directors/  

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DC: Paul re-introduces “Audit the Fed” bill

January 28, 2015
posted by

Raw Story Raw Story    

"Republican Senator Rand Paul, a potential 2016 presidential candidate, on Wednesday re-introduced a bill that would expose the Federal Reserve’s monetary policy discussions and decisions to a congressional audit. The Kentucky senator’s move to re-introduce the bill, along with 30 co-sponsors, comes as Republican lawmakers and some Democrats increase their efforts to rein in the U.S. central bank and make it more transparent. The Fed gained broad regulatory powers and implemented massive stimulus measures after the 2007-2009 financial crisis, expanding its balance sheet to $4.5 trillion." (01/28/15)

http://tinyurl.com/mdmyzph  

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If the Fed has nothing to hide, it has nothing to fear

January 19, 2015
posted by

Ron Paul Campaign For Liberty
by Ron Paul  

"Since the creation of the Federal Reserve in 1913, the dollar has lost over 97 percent of its purchasing power, the US economy has been subjected to a series of painful Federal Reserve-created recessions and depressions, and government has grown to dangerous levels thanks to the Fed’s policy of monetizing the debt. Yet the Federal Reserve still operates under a congressionally-created shroud of secrecy. No wonder almost 75 percent of the American public supports legislation to audit the Federal Reserve." (01/19/15)

http://www.campaignforliberty.org/fed-nothing-hide-nothing-fear  

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The 101st anniversary of the Federal Reserve Act

December 24, 2014
posted by

Students For Liberty Students For Liberty
by Kelly Barber  

"101 years ago today, the Federal Reserve Act was signed into action by Woodrow Wilson on December 13th 1913. The act would establish the Federal Reserve system in the United States as the sole legal authority to issue federal reserve notes (aka the U.S. dollar), giving the institution an extraordinary amount of power over the monetary system. The wave of progressivism in the United States expanded the role of government in the lives of the American public in the realms of labor, education, environment, and finances." (12/23/14)

http://tinyurl.com/k7ejyds  

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Janet Yellen’s Christmas gift to Wall Street

December 22, 2014
posted by

Ron Paul The Daily Bell
by Ron Paul  

"Last week we learned that the key to a strong economy is not increased production, lower unemployment, or a sound monetary unit. Rather, economic prosperity depends on the type of language used by the central bank in its monetary policy statements. All it took was one word in the Federal Reserve Bank's press release -- that the Fed would be 'patient' in raising interest rates to normal levels -- and stock markets went wild. The S&P 500 and the Dow Jones Industrial Average had their best gains in years, with the Dow gaining nearly 800 points from Wednesday to Friday and the S&P gaining almost 100 points to close within a few points of its all-time high. Just think of how many trillions of dollars of financial activity occurred solely because of that one new phrase in the Fed's statement." (12/22/14)

http://tinyurl.com/nty82gn  

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Epic fail: 100 years of the Fed

December 17, 2014
posted by

Jeffrey Tucker Foundation for Economic Education
by Jeffrey A Tucker  

"The most surprising monetary innovation of our time is bitcoin, a privately produced digital currency and payment system. It is a global system that provides a dramatic alternative to central banking and monetary nationalism as we know it. As with other innovations, such as email and texting, it could challenge the dominance of government policies. What will we lose if the private system replaces the government-managed one? A look at the history of central banking -- and the theories behind the history -- shows that we only stand to lose a system that has proven unworkable and dangerous in every way." (12/17/14)

http://fee.org/freeman/detail/epic-fail-100-years-of-the-fed  

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Easy come, easy go

December 2, 2014
posted by

Competitive Enterprise Institute
by Ryan Young  

"The Federal Reserve announced Oct. 29 that it was ending quantitative easing, its program to keep interest rates low. Two days later and halfway around the world, the Bank of Japan announced that it would do the opposite. Both Washington and Tokyo, having presided over weak economies for several years, are eager to get growth back on a fast track. So why are they pursuing opposite policies?" (12/01/14)

https://cei.org/content/easy-come-easy-go  

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Yellen’s concern for inequality ignores Fed’s role in creating it

November 7, 2014
posted by

Cato Institute Cato Institute
by James A. Dorn  

"In a widely publicized speech by Janet Yellen at the Federal Reserve Bank of Boston’s Conference on Economic Opportunity and Inequality, the Fed chairwoman stated, 'The extent of and continuing increase in inequality in the United States greatly concern me.' What she didn’t say is that the Fed itself has helped fuel disparities in income and wealth by its suppression of interest rates over the last six years." (11/05/14)

http://tinyurl.com/kalvd5m  

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How Wilson and the Fed extended the Great War

November 5, 2014
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Brendan Brown  

"As the world reflects on the incomprehensible horror of the Great War which erupted 100 years ago there is a question which goes unasked in the media coverage. How was there no peace deal between the belligerents in 1915 or at latest 1916 once it became clear to all -- especially after the Battle of the Somme -- that the conflict had developed into a stalemate and holocaust of youth? While there had been some early hopes for peace in 1916, they quickly evaporated as it became clear that the British government would not agree to a compromise deal. The political success of those who opposed compromise was based to a considerable degree on the argument that soon the US would enter the conflict on the Entente’s (Britain and France) side." (11/04/14)

http://tinyurl.com/qzyustm  

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Inequality and the Federal Reserve: Part of the solution or part of the problem?

October 29, 2014
posted by

David S. D'Amato Center for a Stateless Society
by David S. D'Amato  

"The relationship between the Federal Reserve and wealth inequality presents an important opportunity for left-wing individualists insofar as libertarian critiques of the Fed are typically regarded as coming from the right. As free market libertarians, however, we need not accept that narrative. Rather, we can attack the Federal Reserve System from a perspective that is both free market and left-wing, condemning the central bank as a class instrument designed to buttress rich, Wall Street interests." (10/27/14)

http://c4ss.org/content/32930  

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The Fed’s new labor-market measure

October 21, 2014
posted by

Frank Shostak Ludwig von Mises Institute
by Frank Shostak  

"Economists at the Federal Reserve have devised a new indicator, which they hold will enable US central bank policymakers to get better information regarding the state of the labor market. The metric is labeled as the Labor Market Conditions Index (LMCI). Note that one of the key data points Fed policymakers are paying attention to is the labor market. The state of this market dictates the type of monetary policy that is going to be implemented." (10/21/14)

http://mises.org/daily/6931/The-Feds-New-LaborMarket-Measure  

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