MONETARY POLICY – FEDERAL RESERVE TIGHTENING

MONETARY POLICY – FEDERAL RESERVE TIGHTENING

October 2017 Congress and President Woodrow Wilson created the Federal Reserve (Fed) 104 years ago to provide and oversee a safer, more flexible and more stable monetary and financial system. Since then, the Fed has also been assigned the goal of keeping inflation and...
MONETARY POLICY – CENTRAL BANKS PULLING BACK

MONETARY POLICY – CENTRAL BANKS PULLING BACK

July 2017   Since 2008, the world’s five most reputable central banks have printed the equivalent of $11 trillion dollars in order to stabilize their economies and increase growth. Many thought these actions were needed to fend off the Financial Crisis, Great...
ECONOMIC OUTLOOK: GOVERNMENT POLICY

ECONOMIC OUTLOOK: GOVERNMENT POLICY

April 2017   Global government changes from Brexit to new presidents in the US, Brazil and South Korea are leading to several policy changes. More changes are expected as four French elections, a German election and a possible Italian election may affect EU...
SECOND RATE INCREASE IN TEN YEARS

SECOND RATE INCREASE IN TEN YEARS

January 2017 ​ Just over a year ago, the US Federal Reserve ended a zero interest rate policy which lasted seven years. Last month, the Federal Reserve made its second interest rate increase in 10 years (from ¼% to ½%). This one year interim between rate increases was...
FOUR MAJOR CENTRAL BANKS STILL PRINTING MONEY

FOUR MAJOR CENTRAL BANKS STILL PRINTING MONEY

October 2015 Major central banks, like the US Federal Reserve, can print money and lower interest rates in order to stimulate their economies; this is referred to as easy monetary policy. Sometimes this also leads to a lower currency valuation which can boost exports....
MONETARY POLICY – NEGATIVE INTEREST RATES

MONETARY POLICY – NEGATIVE INTEREST RATES

July 2016   Government central banks, like the US Federal Reserve, control short “overnight” interest rates and the printing of money. In order to stimulate an economy, a central bank may loosen monetary policy (i.e. lower interest rates and print money) in order...