Economics & Politics

My view on what's going on in the financial markets and the global economy, and a few other things that might interest me from time to time.

The Federal Reserve's balance sheet

The Federal Reserve is in the early stages of reducing its balance sheet, or quantitative tightening ("QT").

Who do you trust?

Do you trust the Fed, or the Bank of England, or the Bank of Japan, or the ECB, or the Bank of China? Shades of grey for sure, read on!

FOREX

FOREX is in the news, especially as many think the USD has reached its peak and is at an inflection point. What drives FOREX? Read on.

The Federal Reserve and the Decade of 2010-2020

The decade 2010-20 involved a very hands-on approach by the Fed to steer the US economy out of a deep recession. What lessons can be learnt

The Infrastructure Investment and Jobs Act

Update of the Infrastructure Investment and Jobs Act, just passed by the House and expected to be signed in law by President Biden next week

The Virginia Gubernatorial Election

Democratic majorities in Congress look fleeting following Mr Youngkin's (R) surprise win in blue state of VA on Tuesday.

Is the bond market doing the Fed's dirty work?

The bond market looks to be doing the Fed's dirty work, sending short term yields to post-pandemic highs. Is the Fed being too methodical?

About that transitory inflation........

I continue to believe that inflation will be transitory, but supply-push inflation will cause inflation to be higher longer.

FOMC and Chairman Powell Press Conference: “Much ado about nothing”

The Federal Reserve released the minutes from its FOMC meeting Sept 21-22 on Wednesday afternoon. The press release is here. Should you...