Go to this link at FederalReserve.gov (which is a misnomer, since the Fed is a private corporation and not part of the government): https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm The link is called “Recent balance sheet trends” and shows you the Fed’s bal...
Recent Trends The latest balance sheet figures show the total at 8.22T, up 143B from the prior month end, but down in the past week by 19B. The chart below shows how the Fed Balance sheet has grown by instrument over the last 18 months. The major surge from COVID can be clearly se...
subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period. In due course, however, as the expansion matures the Federal Reserve will need to begin to tighten monetary conditions to prevent the developm...
Rereading Federal Reserve Chairman Ben Bernanke’s recent speech and measuring it against the incoming data leaves me with a pit in my stomach. I sense Bernanke reveals in this speech he is the proverbial emperor without clothes, short on policy options but long on hope. A last ditch attempt...
This gradual reduction in the Fed’s balance sheet could also push yields on longer-term Treasury bonds higher by a small amount since the market will have to soak up more of Washington’s debt, and investors may demand a higher yield to do so. Recent declines in mortgage rates stopped ...
Indeed, policymakers in recent days have grown increasingly strident in their views about taming inflation. Governor Lael Brainard said Tuesday that bringing prices down will require a combination of steady hikes plus aggressive balance sheet reduction. Markets expect the Fed to increase rates a total...
as well as the integration into the workplace of technological advances. A couple of participants discussed some of these recent trends, noting especially possible implications of the expanded use of artificial intelligence in the workplace. Several participants indicated that their District...
However, all of those readings remain well above the Fed's 2% target. Officials have stressed the need to see consistent declines in inflation and have warned against relying too much on trends over just a few months. Powell said the recent news was welcome but he still sees services inflati...
This chart superimposes gold in red over the US Dollar Index in blue during recent years. Yes, gold and the USDX are often inversely correlated due to the extreme leverage inherent in gold-futures trading. But that is not always true. Gold can still rally on balance when the dollar is st...
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