The Fed Is Paying Banks Not to Lend!

The Fed Is Paying Banks Not to Lend!

The Federal Reserve has added $2.6 trillion to the US economy since the start of 2020. These actions, along with recent fiscal spending programs, have caused many economists to worry about the risks of price level inflation and overheating of the economy, potentially...
Why Quantitative Easing Is Not Working

Why Quantitative Easing Is Not Working

By formally announcing quantitative easing (QE) infinity on March 23, 2020, the Federal Reserve (Fed) is using its entire arsenal of monetary stimulus. Unlimited purchases of Treasury securities and mortgage-backed securities for an indefinite period is far more...
The Fed Slashes Rates as Powell Declares Economy “Strong”

The Fed Slashes Rates as Powell Declares Economy “Strong”

The Federal Reserve this morning slashed the target federal funds rate by 0.5 percent today.  According to CNBC: The Federal Reserve moved to an enact an emergency interest rate cut after officials saw the coronavirus having a material impact on the economic outlook,...
3 Charts Showing Just How Boxed-in the Fed Is

3 Charts Showing Just How Boxed-in the Fed Is

The Fed met market expectations by cutting its target for the fed funds rate by 25 basis points, down to the range of 1.75 – 2.00 percent. In this post I want to demonstrate just how boxed in the Fed has now become, with the help of 3 charts. First,...