Esther George says the Fed's 'large balance sheet' may have helped cause the yield curve inversion

Kansas City Fed President Esther George said the Federal Reserve may be partly responsible for the yield curve inversion. “I think the Fed still has a large balance sheet, and that could be putting some downward pressure on those longer-term rates,” George told CNBC’s Steve Liesman from the Kansas City Fed’s economic policy symposium in  Read more ➝

I would borrow as much as I could

Economist Art Laffer, a supporter of President Donald Trump, warned Thursday on CNBC about the moral hazard of having the kind of negative interest rates seen across Europe and in Japan. “If I could borrow without paying any interest, or ever paying the money back, I would borrow as much as I could, too,” said  Read more ➝

Former Fed official Kocherlakota agrees with Trump on interest rates

Former Minneapolis Fed President Narayana Kocherlakota voiced agreement Tuesday with President Donald Trump’s contention that interest rates are too high. While he expressed some reservations about the impact a sitting president’s criticism could have on Fed independence, Kocherlakota said the notion that monetary policy is too restrictive is basically correct. “I agree with the president  Read more ➝

The US economy is fine, but trade storms are gathering

Workers assemble cars at the newly renovated Ford’s Assembly Plant in Chicago, June 24, 2019. Jim Young | AFP | Getty Images A former colleague of mine at the OECD (a Paris-based public policy research organization financed by member country governments) smiled at me over a five-o’clock beer with a cutting remark that reports of  Read more ➝

US consumer sentiment August 2019 preliminary

U.S. consumer sentiment fell to 92.1 in August, the lowest indicator readout since the start of 2019, according to data released Friday. The dip points to further uncertainty in the U.S. economy, as consumers navigate wild market swings and a constantly shifting trade environment. The University of Michigan’s preliminary August print came in well below  Read more ➝

Trump wants Fed rate cuts, unclear if they would help

President Donald Trump wants the Federal Reserve to help head off a feared economic slowdown, but it’s not clear the central bank has enough firepower left to do so. Besides, some economists say, there’s really not much reason for the Fed to act any more aggressively than it already plans, considering that growth signs remain  Read more ➝