The World Has Reserves About Its Reserve Currency

August 07, 2020

In a Reuters article dated August 5, with the title “As dollar slides, some investors fret about its status as world's reserve currency,” Saqib Iqbal Ahmed signals what may be the indicator of a looming seismic shift in the global economy. The article highlights the ever more visible fragility...

There’s a New Financial Crash Coming

September 21, 2018

Skyrocketing debt, Wall Street deregulation, a fraying social safety net and a diminished dollar could soon leave the United States looking like Greece. Donald Trump is the epitome of "irrational exuberance." You might remember that phrase from the 1990s. Alan Greenspan, the head of the Federal...

Why Should the Fed Shrink Before Tightening?

September 08, 2016

Both the Fed and Congress may be able to overcome short-term volatility. As the US Federal Reserve (Fed) becomes more inclined to raising the Fed funds rate (FFR) according to recent speeches from the Federal Open Market Committee, it should consider shrinking its balance sheet of $4.5 trillion...

The World This Week: End of an Era as the Fed Raises Rates

December 19, 2015

The Fed’s historic decision to raise rates will benefit savers, strengthen the dollar and increase volatility, as well as possibly reduce asset prices and inequality. On December 16, the Federal Open Market Committee of the US Federal Reserve (Fed) “decided to raise the target range for the...

The World This Week: Is Global Recession Around the Corner?

September 19, 2015

The Fed does not raise interest rates and sends shivers down markets as the risk of a global recession becomes real. Markets have tumbled after the US Federal Reserve (Fed) decided not to raise interest rates on September 17. It declared that “recent global economic and financial developments...

Why Are Interest Rates So Low?

July 22, 2015

A lack of consensus on a policy prescription keeps interest rates lower for longer. The global economic environment of recent memory has been unusual to say the least. Persistently low and even negative interest rates have failed to spark an adequate revival in economic fortunes as growth...