Why should macro-prudential tools be used rather than the monetary policy for addressing the risks faced by the U.S. economy?
“I don’t think there is any doubt that quantitative easing enabled the rich and the quick. It was a massive gift,” said Dallas Fed President Richard Fisher.
The Fed aims to serve as a catalyst to improve lives by testing ideas, developing better measurement tools, convening interested parties, and sharing the Federal Reserve’s skills and knowledge.
Personal spending accounts for almost 70% of U.S. GDP. Employment, through wages, is what enables this spending, making it a key driver of economic growth.
Unlike large caps, mid caps see value outperforming growth post crisis This series considers mid cap value versus growth shares and the implications for equity investors. While value tends to outperform…
The Chicago Business Barometer or PMI for March was released on March 31. The reading showed a decrease of 3.9 points to 55.9, the lowest level since May 2013.
Drawing from the purely intermediary-centric approach on leverage that we discussed in Part 5 of this series, Stein suggests a potentially complementary capital markets–focused approach.
An example of macroprudential tools are bank stress tests, conducted regularly by the U.S. Federal Reserve.
The credit crisis, also referred to as the great depression of 2008-2009, left the U.S. economy amidst a liquidity crunch. Since late 2008, the Fed has taken extraordinary steps to revive the economy.
The Institute for Supply Management’s (or ISM) Purchasing Managers Index (or PMI) reading for March was released on Tuesday, April 1. The headline PMI number rose 0.5%.
Stein agrees with Michael Woodford, who suggested that the most natural measure of financial market vulnerability is a variable that captures leverage in the financial sector.
What is the appropriate monetary policy stance to achieve both financial market stability and the Fed’s dual mandate?
Dallas Fed President Richard Fisher, in his speech at the London School of Economics, discussed a number of issues facing the job market in the U.S.
The third point of evidence that Yellen provided for slack in the labor market related to the extraordinarily large share of the unemployed who have been out of work for six months or more.
All sub-indices, with the exception of supplier deliveries, grew in March, with production recording the highest increase of 7.7% month-on-month.
A more accommodative policy offers the usual benefit of lowering expected unemployment and reducing the expected shortfall term in the objective function.
Since early 2009, when QE started and the Fed’s balance sheet began expanding, the Fed critics had warned of inflation risk.
“Ultimately we seek to normalize monetary policy… that’s what forward guidance and exit strategies are all about,” said Dallas Fed President Richard Fisher.
Janet Yellen went on to explain why she believes there’s still considerable slack in the labor market, and why there’s room for continued help from the Fed.
Out of the 18 industries covered by the PMI, 14 registered growth in March—the top three being petroleum and coal products (XLE), transportation equipment, and furniture-related products.