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The limits of balance sheet runoff at the Fed
At his confirmation hearing last week, Kevin Warsh called for a smaller Federal Reserve balance sheet. This statement revives debate over how the Fed…
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Fed keeps a hold on interest rates for now, debate on balance sheet a highlight for next Fed Chair-hopeful Warsh: CEI analysis
The Federal Reserve has decided to keep interest rates steady, aligning with economists’ and financial analysts’ predictions. With the Senate Banking Committee voting to…
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A quantitative easing hangover has the Fed in a balance sheet trap
As Kevin Warsh undergoes the Fed Chair confirmation process, debate has returned to the Federal Reserve’s balance sheet and how it should be managed going…
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What Is Core Inflation?
The new inflation numbers are out, and they aren’t pretty. The Consumer Price Index (CPI) went up 0.3 percent during April, and is up…
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Biden’s Inflation Speech: Top Domestic Priority
President Biden gave remarks on Tuesday declaring inflation his top domestic priority. Like many people, he seems not to understand that inflation is a…
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Fed Hikes Interest Rate: Bigger News on Bond Portfolio Mostly Neglected
The Fed this week announced a half percentage point hike in its federal funds rate. This is the right thing to do, but it…
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GDP Shrinks: The Good and the Bad
The advance estimate for 2022’s first quarter gross domestic product (GDP) is in, and the news is not good. Adjusting for inflation, GDP shrank…
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Inflation Rises to 8.5 Percent: Straining for Optimism
High inflation will likely be with us for a while, which means I’ll be writing a lot of posts like this. So, for the sake…
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Inflation and the Biden Budget
It is good that the Biden administration is beginning to take inflation seriously. Unfortunately, however, there isn’t much that the president and Congress can…