Federal Reserve Board (Fed) Chairman Jay Powell recently announced a new policy framework within which to achieve its long-accepted goals of full employment with low and stable inflation. This change created some disruptive uncertainty in financial markets about how the Fed will behave in the future. Today’s level of disruption and uncertainty would pale, however, … Continue reading New Goals For The Fed?
Recent news from Europe prompts a quick offer of perspective. The president of the European Central Bank (ECB), Christine Lagarde, recently announced plans to launch a digital version of the euro. The Banks of England, Japan, and Canada quickly made similar announcements, as did the Swedish Riksbank and the Swiss National Bank. All this follows … Continue reading What Are These Central Banks After?
Of late my inbox has filled with suggestions from my bank that I transfer some of my savings account into certificates of deposit (CDs). The e-mails from my bank correctly point out that, because the rates on conventional savings accounts are lower than the rate of inflation, I am actually losing purchasing power on … Continue reading CDs
With short-term interest rates above their lows, the popularity of highly liquid, insured accounts has returned. Bank savings accounts are an option. An earlier post focused on these and their like. Because banks and other financial institutions pay a higher rate the more money you are willing to commit and the longer you are willing … Continue reading Certificates of Deposit
Bitcoin has had a wild ride. It entered 2018 roaring up more than 280 percent from a little over $4,500 a coin late in 2017 to $17,429 by the first week of the new year. By week two, it had fallen some 35 percent to $11,403. From there it fell farther, some 48 percent, to … Continue reading The Mysterious Allure of Bitcoin
In an earlier post, I offered guidance on choosing a bank for your savings. Even the smallest investors, however, have alternatives. Savings banks, though fewer than they once were, might suit some people better. Credit unions can also take small deposits and support larger ones, too. This post considers these two alternatives. (A later post … Continue reading Alternatives to Commercial Banks