New Goals For The Fed?

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?

The Market Views the Coming Election

With Election Day fast approaching, investors have been concentrating increasingly on economic prospects.  Market reactions to the possibility of either a Trump or a Biden presidency will depend less on the candidate and more on the policies expected to emerge from their administration: these will determine how the market reacts before the election, while the actual policies … Continue reading The Market Views the Coming Election

COVID-19 Diary Number 3 (April 20, 2020)

The unemployment rate reported by the Labor Department for March understates, by a long shot, the nation’s economic pain.  According to the official report, non-farm payrolls last month fell 701,000 and the rate of unemployment rose from 3.5 percent in February to 4.4 percent. The actual figure is that closed businesses and quarantines likely reduced payrolls … Continue reading COVID-19 Diary Number 3 (April 20, 2020)