Additional Notable Federal Reserve Actions To Address Weakness

On Friday (March 20, 2020) I wrote a post (“Federal Reserve Actions To Address Financial And Economic Weakness“) detailing recently announced Federal Reserve actions intended to address various problematical conditions. These conditions include actual and expected substantial economic weakness, financial instability, and various rapidly falling asset prices. In that post I also highlighted my thoughts …

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Federal Reserve Actions To Address Financial And Economic Weakness

Recently, the Federal Reserve has taken many substantial actions to address financial market weakness, as well as an actual and expected very large drop in economic activity. In addition to the actions taken by the Federal Reserve, there are various actions taken at the Federal, State, and local levels. These programs are largely still being …

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Measuring QE’s Impact

I have written extensively about Quantitative Easing (QE) and Interventions as I believe many aspects of these practices lack recognition and understanding.   My analyses indicate that QE (also referred to as “Large-Scale Asset Purchases” (LSAPs)) in general carries an array of risks, detrimental impacts, and unintended consequences.  It has complex impacts on the economy and markets. Over time, …

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Potential Losses In The Federal Reserve’s Portfolio

I have written extensively on the issue of Quantitative Easing (QE) and Interventions as I believe many aspects of these practices lack recognition and understanding.   Quantitative Easing in general carries an array of risks, detrimental impacts, unintended consequences, and complex impacts on the economy and markets. One such set of dynamics embedded within QE that …

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Notable Statement Concerning Continued Monetary Stimulus

While I don’t necessarily agree with any or all parts of the following statement, released yesterday, from Financial Services Committee Chairman Jeb Hensarling (R-TX), I do think that it is notable, and as such should be recognized. Here is the statement, which is in response to continued monetary stimulus as announced in yesterday’s Federal Reserve FOMC Statement : …

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QE3 Comments

In this post I will make a few (belated) comments regarding QE3, as announced by Ben Bernanke on Thursday. I highlighted notable aspects of that Press Conference, as well as provided links to the transcript, economic projections and FOMC Statement in the September 15 post (“Ben Bernanke’s September 13, 2012 Press Conference – Notable Aspects“) …

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Dynamics And Risks Of The Federal Reserve’s Portfolio

In previous posts I have written extensively of the intervention measures taken by the Federal Reserve, including the many risks involved with Quantitative Easing measures.   One of the risks is the resulting size of the Federal Reserve’s portfolio and its inherent susceptibility to large (on a mark-to-market basis, as opposed to accounting basis) losses. …

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Federal Reserve Philosophies – Then And Now

On Monday, February 13, John C. Williams, President and CEO, Federal Reserve Bank of San Francisco, gave a speech titled “The Federal Reserve’s Mandate and Best Practice Monetary Policy.” Although I don’t agree with many aspects of the speech, I found various aspects to be notable.  I would like to highlight one excerpt in particular, …

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QE3 – Various Thoughts

In the July 7 post (“Evaluating QE2“) I mentioned that “…I believe that QE3 or something very similar will be done in the future.” There are many reasons for this belief.  Among the reasons for additional QE include the recent market tumult, visibly weakening economy, and various confidence measures that have nosedived. My belief in …

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Evaluating QE2

On June 30 The Wall Street Journal published a chart titled “QE2:  A Quantitative Assessment.”  It commented on QE2 and showed how various economic and market metrics fared over the course of the program. The question of QE2’s impact is an important one, for a variety of reasons.  This impact is especially important as I …

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