Opinions on the direction of the market differ
Jeremy Grantham, one of the economists that predicted the 2008 crash, says we’re in the fifth great bubble of the modern era—and warns the economy won’t ‘skate through’ a housing crisis. Grantham is convinced that we’re in the midst of a fifth great bubble of the...
Recent changes from the Fed
Yesterday the Fed increased the rate by .5%. This is the largest interest rate increase since 2000. They also are going to be shrinking its nearly $9 trillion balance sheet starting in June. These policies are likely to ricochet through markets and the economy as...
The quote that changed interest rates in a “New York Minute”
“Given that the recovery has been considerably stronger and faster than in the previous cycle, I expect the balance sheet to shrink considerably more rapidly than in the previous recovery, with significantly larger caps and a much shorter period to phase in the...
The Fed’s posture is looking more direct
Last week, a member of the central bank who usually favors a gentler approach to raising interest rates spoke about the central bank's need to fight rising prices. "It is of paramount importance to get inflation down," Federal Reserve Governor Lael Brainard said in a...
Signs of a housing bubble – what you need to know
US home prices keep on climbing and now some are saying they have seen signs of a housing bubble on the way. While it it too early to tell exactly what will happen, what we do know is that a lot was learned from the last housing crash. If these concerning trends...
The Federal Reserve Increased Rate – What Does it Mean for You?
Thanks to a 40-year high in inflation, Americans are already facing higher prices at the gas pump and the grocery stores. And now the cost of borrowing will increase as well. With an increase of the benchmark rate a quarter of a point on Wednesday, the Federal Reserve...
Ukraine Invasion Market Reaction
Interest rates retreated from 2019 peaks as the Ukraine invasion by Russia escalates and grows more uncertain. No one knows if, when, and how this will end. When the world experiences tense geopolitical moments, it drives what is called a “safe-haven” trade into the...
Could rates have peaked – Part 3 of 3
Russia/Ukraine Remains Unresolved High oil prices are rough. It’s a tax on consumers that goes uncollected. Should the Russia/Ukraine story escalate, and oil prices head higher, the Fed will have to soften its tone and be more dovish or accommodative. The opposite is...
Could rates have peaked – Part 2 of 3
Things Are Not All that great with the economy In addition to the inflation problem, the economy is decelerating. Economic growth is slowing. The consumer is assuming more credit card debt to pay for items and fuel costs are soaring. This is a very difficult...
Could rates have peaked – Part 1 of 3
Financial Conditions Have Already Tightened Part of the Fed’s mandate is to maintain price stability (inflation). The Fed helps lower inflation by raising the Fed Funds Rate, which tightens monetary conditions and slows economic demand. If demand slows, prices come...