Federal Reserve

In the previous article, we learned about FDR’s efforts to end the Great Depression. We focused specifically on his policies weakening the gold standard and enacting the Banking Act of 1935, which established the FDIC. But what happened to the Fed? Isn’t it the Fed’s job to save the economy…

In the last article, we left off discussing how the Fed played a big role in helping the US government fund WWII. The Fed was pressed by the Treasury to keep longer-term interest rates low in order to make it cheaper for the government to borrow money to fund the…

Ever heard of Bretton Woods? If you haven’t, then it’s high time that we fill in that knowledge gap! It’s another piece of the puzzle that we’ve been putting together throughout this series of posts. The development of the Bretton Woods system in 1958 was a pivotal moment in modern…

After a series of financial disasters, the United States finally got its act together in 1913, as we learned in the last post, and founded the nation’s central bank, the Federal Reserve. While people love to talk about how awful the Fed is, it’s important for you to know the…

She didn’t want this job! — How would she feel about the first-ever U.S. default? How does she feel about high inflation? My guest, Jon Hilsenrath, a senior correspondent of the Wall Street Journal, tells us exactly how Secretary Yellen feels about inflation (a stain on her record), and would feel about the first-ever U.S. …

Welcome to a regular snapshot-review of U.S. and international economic news that aims to 1) provide a window into the challenges and decisions facing businesses today, 2) determine the direction of economic policy — such as the speed at which central banks decide to raise interest rates, and 3) assess what the impact will be for consumers. — Credit Rating Agency Places U.S. Rating on ‘Watch Negative’

By: Rutvij Thakkar The Federal Reserve’s dual mandate is as simple as less than 4% unemployment and less than 2% inflation. Unemployment should ideally be at the “natural rate” or the lowest rate of unemployment possible without creating inflation. Natural unemployment accounts for structural unemployment (skill gaps between workers that prevent them from…

Brief analysis of a disappointing story Central Banks play a crucial role in the functioning of a country’s economy. Central banks have different goals, but the most relevant include: price stability, full employment, economic growth, financial stability, exchange rate stability, last but not least promoting financial inclusion. One of the…

Hey there, fellow traders! Let’s chat about the fundamental backdrop for the Dollar Index (DXY) and its impact on the markets. The DXY is currently finding support from the ongoing uncertainty surrounding the US debt ceiling. On top of that, Federal Reserve policymakers are making it clear that market expectations…