Everyone expects the Federal Reserve to increase rates next week. The CME Group assigns a probability of 97% that the Fed’s target rate will rise from 3.0-3.25% to 3.75-4.0%. With the Fed hiking for quite some time, and inflation maintaining a 40 year high, at least two things should now be apparent: Raising rates to fight (price) inflation does
If cringeworthy were a letter , read what Ohio Senator Sherrod Brown (D) wrote to Federal Reserve Chair Jerome Powell (R). In my opinion, everything contained in the letter comes from a place of selfishness, entitlement, and employs little use of reason. The demagogue thrives on appeals to emotions and the use of ill defined or hollow economic
Seven months ago I published the article: Will You Buy the Dip? I concluded: Whether it’s this year, the next, or some time beyond, there will be an event, such as the return of COVID, WW3, the next Lehman Brothers, anything really, to blame for the next stock market crash. Eventually, the Fed will find a reason to officially re-enter the market.
Ron Paul(R) wants to End the Fed. Elizabeth Warren(D) begs the Fed, along with Bernie Sanders(I) and nine other Congress persons who signed a Halloween dated letter to Fed Chair Jerome Powell(R), scrutinizing his intent to keep hiking rates. Incidentally, a few days ago Sherrod Brown(D) also wrote to Powell pleading for market intervention. It
We’ve made it to November. The Fed continues its Quantitative Tightening (QT) path. With each passing day the cries for a Fed Pivot grow. On some level we must accept that the economic outlook for the near-term future does not look good. In 4 Months of QT Down , on October 5 the total balance sheet was standing at $8,759,053,000,000 ($8.76
Now here’s the headline! Swiss National Bank loses nearly $143 billion in first nine months Reuters reported the Q3 result last week, in which Switzerland’s publicly traded central bank (SNB) suffered its largest loss in its 115-year history. The news release reads beyond belief, not because of the unprecedented amount of value that was lost, but
A house of cards. A sandcastle. Dominoes. Lots of imagery available to describe our global, socialist economic system. Waiting for a crisis is one thing, considering a way out is another. Watching news from other countries provides signs of things to come which helps diagnose the worldwide problem. From CNBC : The U.K. economy contracted by 0.2%
We’ve seen this before; when they (referring to the State, central planners, bankers working in concert with government) pass some of the most significant pieces of legislation while everyone else is distracted with the holiday season. On December 23, 1913 The Federal Reserve Act became law. And while that may have been one of the most destructive
The Federal Reserve has been oddly quiet this holiday season. However, members of congress have not. Only a few days before the new year, on December 29 , President Biden signed the $1.7 trillion government funding bill known as the Consolidated Appropriations Act, 2023. So, what do you get for $1.7 trillion these days? The answer is not much, if
Another month has passed, and the Federal Reserve has once again been able to shrink its balance sheet. It’s now 7 months since the official start of Quantitative Tightening (QT). As of last release , on Thursday, their balance sheet stood at $8.507 trillion. The long-term chart reveals it’s much easier to expand the balance sheet than to shrink
What is the Mises Institute?
The Mises Institute is a non-profit organization that exists to promote teaching and research in the Austrian School of economics, individual freedom, honest history, and international peace, in the tradition of Ludwig von Mises and Murray N. Rothbard.
Non-political, non-partisan, and non-PC, we advocate a radical shift in the intellectual climate, away from statism and toward a private property order. We believe that our foundational ideas are of permanent value, and oppose all efforts at compromise, sellout, and amalgamation of these ideas with fashionable political, cultural, and social doctrines inimical to their spirit.