alan greenspan

Monetary Hierarchy, Independence, And Shaming Greenspan Yet Again

By |2018-09-21T17:30:01+00:00September 21st, 2018|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

In June 2003, while discussing the vote that would take the federal funds rate to its then-lowest point, 1%, Alan Greenspan committed what may have been the greatest monetary sin of modern times. The focus for much of the discussion was Japan, that country’s central bank pioneering at that early date all the things the [...]

Why Hysteria Died, In One Day

By |2018-08-01T16:02:53+00:00August 1st, 2018|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Why did inflation hysteria die? The answer is surprisingly simple. Proponents way oversold the thing. They kept claiming that the labor market, via a truly booming economy, would force the Fed’s hand. Wage growth was about to explode, therefore monetary policy couldn’t afford to be complacent. Aggressiveness was about to become Jay Powell’s go-to position. [...]

Making (of) A Statement

By |2018-05-02T15:58:37+00:00May 2nd, 2018|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

I am decidedly in favor of going back to the way it was twenty-five years ago. These constant communications from the Federal Reserve, designed to increase transparency, have accomplished the opposite. Alan Greenspan was made famous for first being an accidental genius (no, it wasn’t massive offshore monetary growth that made the Great “Moderation”, it [...]

Inflation Hysteria(s)

By |2018-03-13T17:02:38+00:00March 13th, 2018|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

On May 16, 2000, the FOMC gathered around in Washington to debate taking more extreme measures. For nearly a year, Greenspan’s Federal Reserve had been “raising rates” in the now-familiar pattern. Adjusting their target for interest on federal funds, the Committee had by then increased it at all of the five previous policy meetings, each [...]

Still None, And Even More Reasons To Expect None

By |2018-03-01T17:47:33+00:00March 1st, 2018|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

The parallels between the last few years and those at the end of the 1990’s are striking. There was a few years ago the monetary intrusion of the “rising dollar” which at its worst seriously depressed the global economy. Oil prices crashed, as did several key currencies, and deflationary pressures that often accompany a significant [...]

What If The Boom Doesn’t Boom?

By |2018-01-23T18:16:28+00:00January 23rd, 2018|Currencies, Economy, Federal Reserve/Monetary Policy, Markets, Stocks|

As most people know, the Kansas City Fed has been holding its annual symposium in Jackson, WY, for a very long time. Supposedly a draw for Paul Volcker’s fly fishing hobby when he was Chairman, the conference came to include heavyweights on a regular basis. Most of them, especially those in the early years, however, [...]