Fed Funds Rate

Federal Reserve Dilemma Suggests Higher Inflation

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Reading Time: 5 minutes The economy looks like it has momentum as of the beginning of 2018 based on most indicators. For example, retail sales growth was 5.4% in December and 4.2% for all of 2017 which was up from the 3.2% growth in 2016. However, retail sales in January declined 0.3% compared with…CONTINUE READING

How Will Markets React To Central Bank Tapering In 2018?

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Reading Time: 5 minutes 2018 is expected to be the year of tighter central bank policies through shrinking balance sheets and rate hikes. It’s going to be interesting to see how central bank policies affect equity markets and the economy. The Fed’s QE policy is monetary stimulus, but most critics claim it just pumps…CONTINUE READING

Natural Interest Rate: Yield Curve Inversion Is Near

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Reading Time: 5 minutes Determining if the current Fed funds rate is too restrictive or expansionary is a critical endeavor because it helps explain what part of the economic cycle we are in. As we have discussed previously, there are many different ways to attempt to time the business cycle in an effort to…CONTINUE READING

What Performs Best During Inverted Yield Curve?

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Reading Time: 6 minutes Panic About Inverted Yield Curve  There has been a lot of discussion about the inverted yield curve lately. The purpose of this article will be to dispel any rumors that exist about what this symbolizes for the economy. There are a three categories of metrics investors with a keen focus…CONTINUE READING