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Category Archive: Federal Funds Rate

  1. Money Supply And Economic Data Weekly Watch — How the Fed is Making Banks Lend

    The Fed­eral Reserve is forc­ing banks to lend or face finan­cial dis­as­ter. The Fed’s lat­est strat­egy gives banks the stark choice of lend­ing or los­ing a lot of money from oper­a­tions. Every­one knows the Fed cut its tar­get Fed­eral Funds rate to the bone this week. In a less obvi­ous move, the Fed is also […] [read full story]

    Posted in: BANKS, Bernanke, Credit Crisis, Deflation, Economic Statistics, economy, Federal Funds Rate, Federal Reserve, Finance, M1, monetary policy, Money Supply, Politics
  2. The Target Fed Funds Rate Was Cut On December 4th – Didn’t Anyone Notice?

    The Fed­eral Reserve cut the tar­get fed­eral funds rate on Decem­ber 4th and appar­ently few peo­ple noticed. Accord­ing to data found on the New York Fed­eral Reserve Bank’s web site, begin­ning on Decem­ber 4th fed­eral funds traded on aver­age in a range from 0.20% to 0.11%. The New York Fed­eral Reserve web site states that […] [read full story]

    Posted in: Economic Statistics, economy, Federal Funds Rate, Federal Reserve, Finance
  3. Money Supply And Economic Data Weekly Watch – Living in the Twilight Zone

    We’ve entered the twi­light zone. This week’s money sup­ply and eco­nomic data is sur­real. Money sup­ply is grow­ing at an unbe­liev­able pace. As mea­sured by sea­son­ally adjusted M1 and M2, the Fed announced that money sup­ply set new all time records. The quick rate of growth for money sup­ply is actu­ally accel­er­at­ing. Over the last […] [read full story]

    Posted in: Cox, Deflation, Depression, Economic Statistics, economy, Federal Funds Rate, Federal Reserve, Finance, Hoover, Inflation, M1, M2, Madoff, monetary policy, Money Supply, Public Policy, SEC
  4. Money Supply and Economic Data Weekly Watch – Not All Savings Is Good Savings

    Sav­ings increased but for the wrongs rea­sons The per­sonal sav­ings rate in Octo­ber was esti­mated to be 2.4% which was an increase of 1.4% from September’s sav­ings rate.  Nor­mally, dur­ing peri­ods of ris­ing unem­ploy­ment and increas­ing eco­nomic hard­ship the per­sonal sav­ings rate declines because some house­holds spend more than they earn. When con­sumers are con­fi­dent about […] [read full story]

    Posted in: Black Friday, Federal Funds Rate, Federal Reserve, Finance, Liquidity Trap, M2, Money Supply, PCE Price Index, Retail Sales, Savings Rate
  5. CPI Indicates" rel="bookmark">Money Supply and Economic Data Weekly Watch – Deflation Is Worse Than CPI Indicates

    Last week’s eco­nomic data is under­es­ti­mat­ing defla­tion. On Wednes­day the Bureau of Labor Sta­tis­tics (“BLS”) announced that the con­sumer price index (“CPI”) declined by 1.0% in Octo­ber which was the biggest sin­gle one month reported decline since before World War II. Broad based defla­tion exac­er­bates the already severe credit cri­sis and increases cash hoard­ing by […] [read full story]

    Posted in: BANKS, BLS, Business Environment, CPI, Credit Crisis, Deflation, Economic Statistics, economy, Federal Funds Rate, Federal Reserve, Finance, Fiscal Policy, GDP, Inflation, Liquidity Trap, M2, monetary policy, Money Supply
  6. Money Supply and Economic Data Weekly Watch – It’s A Brave New World For Federal Funds

    It’s a brave new world for Fed­eral Funds. The actual rate that Fed­eral Funds were trad­ing at last week was 0.23% despite the Tar­get Fed­eral Funds Rate being 1.00%. This anom­aly could be sig­nal­ing the end of the era when Fed­eral Reserve pol­icy is expressed in a sin­gle num­ber, the Tar­get Fed­eral Funds Rate. Tech­ni­cal […] [read full story]

    Posted in: BANKS, Bernanke, Economic Statistics, economy, Federal Funds Rate, Federal Reserve, Finance, LIBOR, M2, monetary policy, Money Supply
  7. Money Supply and Economic Data Weekly Watch – The Next Crisis Is On The Horizon

    Even while the Fed and Trea­sury are fight­ing defla­tion and a seri­ous reces­sion, they are lay­ing the ground work for a new liq­uid­ity bub­ble with the poten­tial for dev­as­tat­ingly high infla­tion. While the cur­rent news is dom­i­nated by reces­sion­ary GDP, falling con­sumer con­fi­dence, bank­ing res­cues, incred­i­ble stock mar­ket volatil­ity and frozen short term money mar­kets, […] [read full story]

    Posted in: BANKS, Bernanke, Deflation, Economic Statistics, economy, Federal Funds Rate, Federal Reserve, Finance, Fiscal Policy, FOX BUSINESS NETWORK, Inflation, Leverage, Liquidity Trap, M2, monetary policy, Money Supply, REGULATION, Treasury
  8. Money Supply And Economic Data Weekly Watch – Lots of bad news while money supply hits a new all time high

    Money Sup­ply The Fed is back at it again; its push­ing money sup­ply as it tries to rein­flate the econ­omy. Money sup­ply, as mea­sured by sea­son­ally adjusted M2, hit a new all time high of $7,870.4 bil­lion and on a non-seasonally adjusted basis rose to $7,867.5 bil­lion. How­ever, because the global econ­omy is stuck in […] [read full story]

    Posted in: BANKS, Bernanke, Credit Crisis, Deflation, Economic Statistics, economy, Federal Funds Rate, Federal Reserve, Finance, Fiscal Policy, GDP, Inflation, Liquidity Trap, M2, monetary policy, Money Supply
  9. Money Supply And Economic Data Weekly Watch – Good News, The End Is Near!

    Money Sup­ply and Other Eco­nomic Data Money sup­ply as mea­sured by sea­son­ally adjusted M2 didn’t change much dur­ing the week end­ing Octo­ber 16th.  It was down slightly but still is hold­ing its newly inflated lev­els after weeks of the Fed­eral Reserve stim­u­lat­ing money sup­ply.  At least for now, shrink­ing real money sup­ply, i.e., money sup­ply going […] [read full story]

    Posted in: Credit Crisis, Economic Statistics, economy, Federal Funds Rate, Federal Reserve, Finance, monetary policy, Money Supply
  10. Money Supply and Economic Data Weekly Watch – We’re In Orbit Now!!

    A few weeks ago I wrote that money sup­ply was about to blast off. And, last week the data showed that the Fed was pump­ing money (as mea­sured by M2 on a sea­son­ally adjusted basis) into the sys­tem at greater than a 100% annu­al­ized rate. Well, this week we’ve reached orbit and are cir­cling the […] [read full story]

    Posted in: Economic Statistics, economy, Euro, European Union, Federal Funds Rate, Federal Reserve, Finance, Fiscal Policy, Liquidity Trap, M2, Money Supply