Tag - Federal Reserve

4 Reasons the Economy Will Crash Within the Year

Stock markets are always a trailing indicator of the health of the economy. They very often remain elevated even after the onset of a recession, only really falling into the depths once the existence of a recession is fully realized. But the behavior of stock markets today is nothing...

Why Does the Smart Money Trust Gold?

The booms and busts of the business cycle are an unfortunate aspect of modern life that many investors have come to expect, and fear. Investing during the boom phase of the business cycle can be wonderful, as investors’ retirement account balances balloon to massive levels. But the bust phase...

Fed’s Powell Denies Negative Interest Rates in the Works, But Does He Have a Choice?

In a widely watched speech in Washington yesterday, Federal Reserve Chairman Jay Powell reiterated his opposition to negative interest rates. In doing so he joined a chorus of other Fed policymakers who have stated in recent days their opposition to introducing negative rates. But with increased political pressure from...

Negative Rates: Coming Soon to a Bank Near You

Last week saw an unprecedented market freakout, as markets began pricing in the likelihood of negative interest rates in the future. Futures markets anticipated negative rates as soon as November, which sent bond yields plummeting. While Fed Chairman Jay Powell has long stated that the Fed won’t take interest...

What the Federal Reserve Is Doing and How It Affects Your Retirement

Most investors know by now that the Federal Reserve has intervened heavily in the US economy over the past several weeks. What they may not realize, however, is just how deep that intervention has become, and how that will affect their retirement. Much of the mainstream media lauds the Fed’s...

Can You Afford the Federal Government’s Coronavirus Spending?

The federal government has already pledged $2 trillion to help households and businesses withstand the pressure placed on them from the coronavirus. But the final price tag could end up far higher, perhaps as much as $5 trillion or more. The national debt was already at $23.5 trillion before the...

Federal Reserve Blowing Bond Bubble Even Bigger

Whenever the Federal Reserve, or any government agency for that matter, intervenes in the economy, it is always going to end up picking winners and losers. Government intervention distorts economic activity, and very often in ways that are detrimental to the functioning of the economy.The Federal Reserve’s latest attempts...

Federal Reserve Balance Sheet Continues to Grow, Endangering Your Retirement

At this point everyone realizes that the Federal Reserve’s balance sheet is set to increase in a major way. The only question is when (or if) it will stop, and how quickly it will increase. Many analysts today believe that the Fed’s balance sheet may very well top $10...

What Could Possibly Go Wrong? Reserve Requirements Are Now Zero

With the flurry of actions the Fed undertook over the past few weeks to supposedly “stabilize” financial markets, one very important action has flown under the radar. And it’s one that could have a very debilitating effect on US banks and the entire financial system.One of the elements of...