Posts Tagged ‘ Federal Reserve ’

What did Fed chairman Yellen tell Obama?

April 18, 2016
posted by

Ron Paul Campaign For Liberty
by Ron Paul  

"This week, President Obama and Vice President Biden held a hastily arranged secret meeting with Federal Reserve Chairman Janet Yellen. According to the one paragraph statement released by the White House following the meeting, Yellen, Obama, and Biden simply 'exchanged notes' about the economy and the progress of financial reform. Because the meeting was held behind closed doors, the American people have no way of knowing what else the three might have discussed. Yellen's secret meeting at the White House followed an emergency secret Federal Reserve Board meeting. The Fed then held another secret meeting to discuss bank reform. These secret meetings come on the heels of the Federal Reserve Bank of Atlanta's estimate that first quarter GDP growth was .01 percent, dangerously close to the official definition of recession." (04/18/16)

http://www.campaignforliberty.org/ron-paul-fed-chairman-yellen-tell-obama  

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US stocks rise on higher oil, dovish Fed minutes

April 7, 2016
posted by

Business Times [Singapore]    

"Wall Street stocks rose solidly Wednesday as higher oil prices lifted petroleum-linked shares and minutes from the Federal Reserve suggested the US central bank would keep interest rates low. The Dow Jones Industrial Average gained 112.73 (0.64 per cent) to 17,716.05. The broad-based S&P 500 added 21.49 (1.05 per cent) to 2,066.66, while the tech-rich Nasdaq Composite Index jumped 76.78 (1.59 per cent) to 4,920.72." (04/06/16)

http://www.businesstimes.com.sg/stocks/us-stocks-rise-on-higher-oil-dovish-fed-minutes  

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The Libertarian Angle, 04/05/16: Abolish the Fed

April 5, 2016
posted by

Future of Freedom Foundation Future of Freedom Foundation
by  

"In this segment, Richard Ebeling and Jacob Hornberger discuss the why free trade is pragmatically a boon to civilization and ethically the only moral result when you allow people to live in freedom." [various formats] (04/05/16)

http://fff.org/explore-freedom/article/libertarian-angle-abolish-fed-video/  

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Kocherlakota on the inflation outlook

March 17, 2016
posted by

Scott Sumner EconLog
by Scott Sumner  

"When considering the fact that inflation is expected to run only a few tenths below target, keep in mind that both the Fed and private forecasters have tended to overestimate inflation in recent years. Market forecasts have tended to run lower, although those may have biases as well. In the end I think Kocherlakota's criticism should be taken seriously, because the one thing we've learned over the past decade is that at the zero bound, dovish credibility is much harder to achieve (using their current instruments) than hawkish credibility." (03/17/16)

http://econlog.econlib.org/archives/2016/03/kocherlakota_on.html  

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Understanding the Federal Reserve’s shell game

March 2, 2016
posted by

Dan Sanchez Ludwig von Mises Institute
by Dan Sanchez  

"The Federal Reserve is a key component of the American Transfer State. Under the guise of 'macroeconomic management,' it redistributes vast amounts of wealth on an ongoing basis through inflation. The victims of these transfers are ordinary Americans. The beneficiaries are the government and its elite cronies. The Fed masks the nature of this surreptitious taxation and corporate welfare by performing a simple shell game that is just complicated enough to confound the general public." (03/02/16)

https://mises.org/library/understanding-federal-reserve%E2%80%99s-shell-game  

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Central banks should stop paying interest on reserves

February 23, 2016
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Brendan Brown  

"In 2008, the Federal Reserve began paying interest on reserve balances held on deposit at the Fed. It took more than seven decades from the US leaving the gold standard -- in 1933 -- for the fiat regime to do this and thus revoke a cardinal element of the old gold-based monetary system: the non-payment of any interest on base money. The academic catalyst to this change came from Milton Friedman's essay 'The Optimum Quantity of Money' where he argued that the opportunity cost of paper money (any foregoing of interest compared to on alternative money-like instruments such as savings deposits) should be equal to its virtually-zero marginal cost of production." (02/23/16)

https://mises.org/library/central-banks-should-stop-paying-interest-reserves  

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It takes a regime change

February 11, 2016
posted by

Scott Sumner EconLog
by Scott Sumner  

"In the 1970s, the Fed kept tinkering with interest rates, not understanding that high rates don't mean tight money. Inflation and NGDP growth kept soaring higher and higher. Eventually economists came to believe that (old) Keynesian economics was bankrupt. A new regime requires new leadership, not invested in the failed policy. President Carter 'promoted' Fed chair G. William Miller (actually he was basically fired), and replaced him with Paul Volcker, who abandoned the interest rate targeting regime. Inflation was brought under control. It may be too soon for this sort of personnel change today, but it's certainly not too soon to conclude that the current interest rate targeting regime has failed." (02/11/16)

http://econlog.econlib.org/archives/2016/02/it_takes_a_regi.html  

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No, Senator Sanders, the Fed was ALWAYS a creature of cronyism

February 4, 2016
posted by

Independent Institute Independent Institute
by David Flemming  

"In his letter to the New York Times on Dec. 23, Sanders claims that the Federal Reserve is 'an institution that was created to serve all Americans (which) has been hijacked by the very bankers it regulates.' 'Hijacked' is misleading terminology. The Fed was created on behalf of bankers seeking government favors. Sanders unwittingly propagates the myth that it was created to 'serve all Americans.'" (02/04/16)

http://blog.independent.org/2016/02/04/no-senator-sanders-the-fed-was-always-a-creature-of-cronyism/  

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The cozy relationship between the Treasury and the Fed

February 4, 2016
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by David Howden  

"Last year was a tough one for investors. Gold was down 10 percent. The Dow Industrials fell 2.5 percent, and most bond indexes finished down by at least that much. One institution that performed remarkably well in 2015 was the Federal Reserve. It just finished its most profitable year on record." (02/04/16)

https://mises.org/library/cozy-relationship-between-treasury-and-fed  

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Federal Reserve: Bizarro Robin Hood?

January 21, 2016
posted by

Campaign For Liberty Campaign For Liberty
by Norm Singleton  

"Bizzaro World is a land featured in the Superman comics where everything is the opposite of our world. While Bizzaro World is a fictional creation, at times it seems that some individuals and institutions from Bizarro World have stepped off the pages of the comics and into real life. Take the Federal Reserve for example. Michael Gray of the New York Post is the latest to point out that the Federal Reserve is a Bizzaro Robin Hood, since it steals from the poor and gives to the rich ..." (01/21/16)

http://www.campaignforliberty.org/federal-reserve-bizzaro-robin-hood  

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What does the Federal Reserve have to hide?

January 13, 2016
posted by

Thomas L. Knapp William Lloyd Garrison Center for Libertarian Advocacy Journalism
by Thomas L Knapp  

"Supporters paint a Fed audit as simple common sense; opponents as an attempt to 'politicize' US monetary policy. It seems to me that logic and reason are entirely with the pro-audit side. The Federal Reserve system was established by Congress in 1913 for the express purpose of manipulating the national currency pursuant to statutory objectives (creating and maintaining 'maximum employment, stable prices, and moderate long-term interest rates'). That's inherently 'political.' It's not 'politicization' that audit opponents really object to. What they object to, their dark references to 'conspiracy theory' and other attempts at distraction notwithstanding, is transparency." (01/12/15)

http://thegarrisoncenter.org/archives/4051  

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US Senate rejects “Audit the Fed” bill

January 13, 2016
posted by

The Washington Post Washington Post    

"The Senate on Tuesday blocked legislation calling for tougher audits of the Federal Reserve, rebuffing an attempt by Republican presidential candidate Rand Paul to give lawmakers greater oversight of the central bank’s moves on interest rates. The 53-44 vote fell short of the threshold to overcome a Democratic filibuster. But the Kentucky Republican, who is seeking the GOP's nomination for president, was joined by independent Sen. Bernie Sanders of Vermont, a candidate for the Democratic nomination for president who occupies the opposite end of the political spectrum from Paul." (01/13/16)

https://www.washingtonpost.com/politics/federal_government/senate-rejects-rand-pauls-audit-the-fed-legislation/2016/01/12/f3a21abe-b968-11e5-85cd-5ad59bc19432_story.html  

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Are we headed for another bust?

January 5, 2016
posted by

Frank Shostak Ludwig von Mises Institute
by Frank Shostak  

"On Wednesday December 16, 2015, Federal Reserve Bank policymakers raised the federal funds rate target by 0.25 percent to 0.5 percent for the first time since December 2008. There is the possibility that the target could be lifted gradually to 1.25 percent by December next year. Fed policymakers have justified this increase with the view that the economy is strong enough and can stand on its own feet. 'The Committee judges that there has been considerable improvement in labor market conditions this year, and it is reasonably confident the inflation will rise over the medium term to its 2 percent objective,' the Fed said in its policy statement. Various key economic indicators such as industrial production don't support this optimism." (01/05/16)

https://mises.org/library/are-we-headed-another-bust  

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Janet Yellen fights the tide of falling interest

January 4, 2016
posted by

Cobden Centre
by Keith Weiner  

"On Wednesday Dec 16, Federal Reserve Chair Janet Yellen announced that the Fed was raising the federal funds rate by 25 basis points. Let's get one thing out of the way. This is not a move towards free markets. Whether the Fed sets interest lower, or whether it sets interest higher, we still have central planning. We still have price fixing of interest rates.
Interest rates may be set too low. However, forcing interest up is no cure. We need to eliminate central planning, and move to a free market in interest. This is impossible in our present monetary regime." (01/04/16)

http://www.cobdencentre.org/2016/01/janet-yellen-fights-the-tide-of-falling-interest/  

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A free market in interest rates

December 23, 2015
posted by

The Cobden Center
by Keith Weiner  

"UUnless you're living under a rock, you know that we have an administered interest rate. This means that the bureaucrats at the Federal Reserve decide what's good for the little people. Then they impose it on us. In trying to return to freedom, many people wonder why couldn't we let the market set the interest rate. After all, we don't have a Corn Control Agency or a Lumber Board (pun intended). So why do we have a Federal Open Market Committee? It's a very good question." (12/22/15)

http://www.cobdencentre.org/2015/12/a-free-market-in-interest-rates/  

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Do we need the Fed?

December 21, 2015
posted by

Ron Paul Campaign For Liberty
by Norm Singleton  

"When the Fed floods the market with artificially created money, it lowers the interest rates, which are the price of money. As the price of money, interest rates send signals to businesses and investors regarding the wisdom of making certain types of investments. When the rates are artificially lowered by the Fed instead of naturally lowered by the market, businesses and investors receive distorted signals. The result is over-investment in certain sectors of the economy, such as housing. This creates the temporary illusion of prosperity." (12/21/15)

http://www.campaignforliberty.org/ron-paul-need-fed  

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Federal Reserve raises key interest rate, ending seven years of near-zero rates

December 17, 2015
posted by

Minneapolis Star Tribune    

"The Federal Reserve is raising interest rates from record lows set at the depths of the 2008 financial crisis, a shift that heralds modestly higher rates on some loans. The Fed coupled its first rate hike in nine years with a signal that further increases will likely be made slowly as the economy strengthens further and inflation rises from undesirably low levels. Wednesday's action signaled the central bank's belief that the economy has finally regained enough strength 6 1/2 years after the Great Recession ended to withstand modestly higher borrowing rates." (12/16/15)

http://www.startribune.com/fed-finally-lifts-key-interest-rate-from-near-zero/362666011/  

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Banking on aggression

December 16, 2015
posted by

Mary Ruwart Ruwart.com
by Mary J Ruwart  

"The Federal Reserve is probably the most powerful cartel in the world. Most people think it is a government agency; in fact, it is an organization of private bankers. The US government has given it a monopoly on US currency, which it can inflate or deflate at will. Virtually overnight, the Fed, as it's often called, can destroy the US economy, creating boom and bust cycles. As goes the United States, goes the world." (12/14/15)

http://www.ruwart.com/blog/banking-on-aggression-from-the-cliff-notes-version-of-healing-our-world.html  

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The problem with the Fed’s economic stimulus

December 2, 2015
posted by

Reformed Libertarian
by C Jay Engel  

"The United States' central bank, The Federal Reserve (or 'Fed' for short), has, for the past 8 years, attempted to reinvigorate the US economy by undertaking various efforts to suppress interest rates below their natural and market levels. Interest rates literally represent the cost of borrowing money and, like all other prices such as those for shoes and beef and toothpaste, can and should be set via the free exchange of millions of people throughout the economy on the free market. This is the fundamental economic principle of Supply and Demand: that prices move up and down due to variations in the relationship between these two components of exchange. No government body via intervention into the market can eradicate the law of supply and demand; just like government intervention against the supply and demand relationship would cause problems in the shoe or beef markets, so it causes problems in the interest rate markets." (12/01/15)

http://reformedlibertarian.com/blog/the-problem-with-the-feds-economic-stimulus/  

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The problem with “rules-based” monetary policy

November 30, 2015
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Tommy Behnke  

"The Taylor Rule is no more accurate at determining interest rates than meteorologists are at forecasting the weather. The only difference between the two is that weathermen are precise on occasion, whereas the federal funds rate under the Taylor Rule is, at best, less wrong. Setting the price of money and credit in the name of unleashing the economy's supposed potential output is the equivalent of enacting price controls on milk to unlock its full buying power. It's a fallacy that cannot be achieved." (11/30/15)

http://mises.org/library/problem-rules-based-monetary-policy  

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The Fed is above the law

November 24, 2015
posted by

Scott Sumner EconLog
by Scott Sumner  

"This post may upset some people, but I am simply trying to describe the world as it is, not as I would wish it to be. I recently spoke with Ryan Hart, who is researching the legal status of Fed policy. That got me thinking about the Fed's mandate, and whether it is legally enforceable." (11/24/15)

http://econlog.econlib.org/archives/2015/11/the_fed_is_abov.html  

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Is the Fed due for downsizing?

November 23, 2015
posted by

Anthony Wile The Daily Bell
by Anthony Wile  

"Politico tells us that the 'Fed pushes back as Congress eyes its billions' and that 'Congress is aiming to take billions out of the Fed's accounts to help pay for a new highway and transit bill.' Beyond explaining the intentions of Congress in this regard, the article speculates on why the Fed hasn't been more vocal about Congress's intended raid on its coffers." (11/21/15)

http://www.thedailybell.com/editorials/36652/Anthony-Wile-Is-the-Fed-Due-for-Downsizing/  

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Does the bell toll for the Fed?

November 10, 2015
posted by

Ron Paul Campaign For Liberty
by Ron Paul  

"Last week Federal Reserve Chair Janet Yellen hinted that the Federal Reserve Board will increase interest rates at the board's December meeting. The positive jobs report that was released following Yellen's remarks caused many observers to say that the Federal Reserve's first interest rate increase in almost a decade is practically inevitable. However, there are several reasons to doubt that the Fed will increase rates anytime in the near future." (11/09/15)

http://www.campaignforliberty.org/ron-paul-bell-toll-fed  

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The Fed desperately tries to maintain the status quo

November 5, 2015
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Ronald-Peter Stoferle  

"During the press conferences of recent FOMC meetings, millions of well-educated investment professionals have been sitting in front of their screens, chewing their fingernails, listening as if spellbound to what Janet Yellen has to tell them. Will she finally raise the federal funds rate that has been zero bound for over six years?" (11/04/15)

https://mises.org/library/fed-desperately-tries-maintain-status-quo  

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The Fed can’t raise rates, but must pretend it will

November 2, 2015
posted by

The Cobden Centre
by Thorsten Polleit  

"Since spring 2013, the Fed has been playing with the idea of raising rates, which it had suppressed to basically zero percent in December 2008. So far, however, it has not taken any action. Upon closer inspection, the reason is obvious. With its policy of extremely low interest rates, the Fed is fueling an artificial economic expansion and inflating asset prices." (11/02/15)

http://www.cobdencentre.org/2015/11/the-fed-cant-raise-rates-but-must-pretend-it-will/  

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