FED

This text was originally published in the collection "2020: Inside and Beyond" Every intricate story has to start somewhere. In this one about the super-massive printing of money, that moment is in 2008, and the starting point is the United States. To get to the answer to the question of why central banks are printing more today …

By Jeff Deist, Mises.org Bloomberg Terminal, the financial software used by countless analysts and traders around the world, has a problem: its system can’t price bonds that use negative interest rates. The programmers never even considered such a situation possible, so they didn’t …

The US Federal Reserve cut interest rates for the first time in more than 10 years. The market correction that investors feared occurred, but it was not particularly sharp. Due to the worsening stock yields and the interest rate cut, the price of gold shot up. The main yield curve is …

All stock markets are performing well in June, with the S&P500 even hitting a new record. Government debt is also performing well, with gold prices seeing a very large increase. However, investors are wary because the previous two major corrections in stocks followed similar levels of growth. Analysts expect the Federal Reserve to cut interest rates...

His comments about the vulnerability of the US Treasury to service its debts due to the Fed sent the yield on 10-year US government bonds to a seven-year high. On Wednesday, US indices had their worst session since February. Then, in one day, the index of blue chips, or the largest US corporations, the Dow Jones erased …

The investment community and financial media pay close attention to interest rates—the price a borrower pays to borrow money—and for good reason. When the U.S. Federal Open Market Committee (FOMC for short), or any other central bank committee, sets a target for …

The world put out the fire with debt that will sooner or later have to be paid. On September 15, 2008, the United States woke up to the bankruptcy of its fourth largest investment bank, Lehman Brothers. With assets of $639 billion (at least on the balance sheet) and $619 billion in debt, it was the largest bankruptcy …

Emerging Market Pain May Be a Sign of Future U.S. Trouble Emerging markets are on fire. In the past week, Turkey’s currency crisis has been joined by similar financial conflagrations in Argentina and Indonesia. The central bank of the Gauchos raised its key interest rate to 60% (the world’s highest) from 45%, after …

The factors that lead to the current crisis in Turkey are at a fundamental level two. The huge balance of payments deficit and high levels of price inflation, especially since 2012. In turn, these two factors are a direct result of the fiscal and monetary policies that Turkey has chosen to follow over the last …

On December 14, the chair of the Federal Reserve, the central bank of the United States, officially announced the increase in the institution's key interest rate by 25 basis points, from 0.25% to 0.50%. This is the first interest rate increase by the Fed since December 2015, although Yellen initially said that we would see three to four increases ...