New Fed Chairman, Same Old Story

President Trump nominated Jerome H. Powell as the new Chairman of the Federal Reserve Bank. Don’t look for much to change. And Janet Yellen’s announcement that she will resign from the board upon Mr. Powell’s induction as board chair is pretty much a non-event.

Where we are today is the culmination of decades of irresponsible financial/fiscal policies and a complete abdication of fundamental economics. Continue reading “New Fed Chairman, Same Old Story”

The Fed’s 2% Inflation Target Is Pointless

Within the Federal Reserve sometime in 1996, a discussion took place among FOMC (Federal Open Market Committee) members regarding the subject of inflation targeting. Federal Reserve District Governor (San Francisco) Janet Yellen believed that a little inflation “greases the wheels” of the labor market. Her preferred “target” was 2%. She asked Chairman (at the time) Alan Greenspan his preference.  Continue reading “The Fed’s 2% Inflation Target Is Pointless”

The Fed’s Dilemma – Doing The Right Thing Won’t Help Janet Yellen Or Us

The Federal Reserve doesn’t know what to do.  That’s too bad.  For all of us.

The bigger problem is that it probably doesn’t make much difference what they do – or don’t do.  Continue reading “The Fed’s Dilemma – Doing The Right Thing Won’t Help Janet Yellen Or Us”

The Federal Reserve And Drug Addiction – A Prediction

The Federal Reserve Bank was established in 1913. Its stated purpose was to control the economic cycles; more specifically to avoid panics and crashes by smoothing out the variances in the stages (prosperity, inflation, recession, depression) of the economic cycle.

The plan centered around control (expansion and contraction) of the money supply and exertion of any influence it could muster regarding direction (up, down, or stable) of interest rates.  Continue reading “The Federal Reserve And Drug Addiction – A Prediction”

A Game Of Chess And The Source Of The Federal Reserve’s Power

We have become pawns in the game of Chess being played by the Federal Reserve Bank.  Who is their opponent?  Anybody else who makes a move.

Week in, week out, everyone’s eyes and ears seem fixed on what the Federal Reserve Board will say or do.  Mostly, it is about what they say. That’s because they can’t really do much of anything. Continue reading “A Game Of Chess And The Source Of The Federal Reserve’s Power”