Federal Reserve’s Rate Increases: Too Little Too Late?
The Federal Reserve’s recent 0.75 percent increase in its “benchmark” interest rate is the Fed’s highest rate increase since 1994. This increase is a sign that the Fed has finally …
Interest rates
A Wonky Evisceration of Biden’s Bad Deficit Math
President Joe Biden is taking victory laps for last year’s reduced budget deficit. No one would be happier than me to see this number fall in a significant way. But …
Recession ‘Virtual Certainty’ as Interest Rates Spike
Interest rates are now 1.5 percentage points higher than they were a few months ago. On Wednesday, the Federal Reserve raised interest rates by three-quarters of a percentage point on …
Blundering Into Escalation in Ukraine?
In this week’s Reason Roundtable, editors Matt Welch, Peter Suderman, Katherine Mangu-Ward, and Nick Gillespie question the $40 billion aid package to Ukraine and describe the impact of rising interest …
America’s Huge Pile of National Debt Makes Combating Inflation More Difficult
The optimistic scenario goes like this. America shakes off what remains of the pandemic in the coming months without the need for trillions in additional borrowing, Congress doesn’t pass any …
Enough About Interest Rates!
Enough About Interest Rates! Authored by Alexander William Salter via The American Institute for Economic Research, Monetary policy isn’t about interest rates. It’s about money. Specifically, it’s about the supply of …
What If Everyone Is Wrong About US Inflation’s Impact On Interest Rates?
What If Everyone Is Wrong About US Inflation’s Impact On Interest Rates? By Nicholas Colas of Datatrek Just one “Markets” topic today, but an important issue so it needs our …
Many Politicians Claim That Increased Spending Sparks Economic Growth. Here’s Why That’s Misleading.
The scale and scope of government spending expansion in the last year are unprecedented. Because Uncle Sam doesn’t have the money, lots of it went on the government’s credit card. …
Critics Claim Bitcoin Is a Threat to the Environment. They’re Wrong.
One popular critique of bitcoin is energy cost per transaction. This doesn’t begin to capture bitcoin’s massive energy savings compared to fiat currency. Bitcoin’s cost per transaction is well known, …
The Inverted Yield Curve and Recession
[This article is part of the Understanding Money Mechanics series, by Robert P. Murphy. The series will be published as a book in 2021.] The “yield curve” refers to a graph showing …