Federal Reserve policy

Factors for the Fed to Consider

August 29, 2016

When the first and so far only federal funds hike of the current cycle was implemented last December, U.S. real GDP had only risen 0.9% at an annualized rate between the summer and autumn quarters. At the start of some previous tightening cycles, U.S. real GDP had advanced much more quickly than 0.9%, to wit […] More

U.S. and Ezone Manufacturing Conditions Worse in May than April

June 1, 2012

According to the ISM survey of U.S. manufacturing purchasing managers, activity expanded last month for the 34th straight time but at a slower pace than in April and January.  In Euroland, factory-sector activity contracted for the tenth straight month and at a faster speed since June 2009.  PMI readings above 50 denote expansion, while sub-50 […] More

Comments on the Bernanke Press Conference

April 25, 2012

Several useful messages were delivered at the press conference. One of the biggest downside growth risks still facing the United States is the uncertain degree of fiscal drag that will be felt at the start of next year.  If Congress legislates no changes in planned austerity from the spending and tax side, the Fed Chairman […] More