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Tag Archives: Monetary Policy

 Fed Balance Sheet July 2021: 143B added

The Federal Reserve has three primary tools to conduct Monetary Policy: reserve requirements, the discount rate, and open market operations (Quantitative Easing). Open market operations are how the Fed uses its balance sheet to provide liquidity to the market. More details can be found here. The Fed defines Open Market Operations as:Open market operations involve the buying and selling of government securities. The term “open market” means that the Fed doesn’t decide on its own which...

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All You Do to Me Is Talk Talk! SchiffGold Friday Gold Wrap July 30, 2021

The Federal Reserve held its July meeting this week. Once again, it didn’t do anything. But there was certainly plenty of talk to dissect. In this episode of the Friday Gold Wrap, host Mike Maharrey does just that with some analysis of the messaging coming out of the Fed meeting, along with a look at the newly released GDP numbers and what they might be telling us.The SchiffGold Friday Gold Wrap podcast combines a succinct summary of the week’s precious metals news coupled with thoughtful...

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Peter Schiff: It’s Game Over if the Markets Call the Fed’s Bluff

The Federal Reserve insists inflation is “transitory” and the economy is making “progress.” Yet, it continues with the extraordinary monetary policy it launched at the onset of the COVID-19 pandemic. Meanwhile, we’re seeing all kinds of data hinting that the economy may not be as great as advertised. Despite this, and even as prices continue to spiral higher, the Fed’s only monetary policy is talk. Peter breaks it all down on his podcast and drills down to the key question: what happens...

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A Whole Lot of Talk, No Action at the Latest Fed Meeting

The Federal Reserve wrapped up its July meeting on Wednesday. Once again, there was a whole lot of talk and no action.The Fed kept interest rates at zero. The Fed kept its quantitative easing program rolling. The Fed didn’t do anything. But the Fed had plenty to say.Peter Schiff summed it up this way in a tweet.The most important aspect of today’s FOMC announcement on interest rates is the press conference that follows. That’s because Fed policy is now defined by words, not action. As the...

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Another Fed Balance Sheet Record; Where’s the Exit Door?

For months, the markets have anticipated the Fed tightening monetary policy in order to take on rising inflation. At the June FOMC meeting, the central bank even hinted that it might start raising interest rates in 2023 instead of 2024, and the central bankers apparently talked about talking about tapering their quantitative easing bond-buying program. But with all of this talk, the loose monetary policy driving inflation continues unabated. Interest rates remain pegged at zero. The Fed...

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Russia Goes to War With Inflation

While the Federal Reserve continues to downplay inflation in the US, insisting that it is “transitory,” the Bank of Russia has gone to war with rising prices. Bank of Russia Governor Elvira Nabiullina says she sees “persistent factors” to inflation, and on Friday, the Russian Central bank hiked interest rates by 100 basis points to 6.5%.In a statement, the Bank of Russia said, “The contribution of persistent factors to inflation increased due to faster growth of demand compared to output...

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Some Non-Covid Links

Deirdre McCloskey shares the history of her political opinions. A slice: When in 1964 I shifted from Harvard College to Harvard graduate school in economics I was still supposing that my classmates and I would go down to Washington and, as the contemporary if daft phrase had it, “fine tune” the U.S. economy, or with still greater ease the Indian economy. The radio dial for tuning would be input-output analysis, which I had used to write my college fourth–year thesis. The thesis, which I...

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Political Theater: SchiffGold Friday Gold Wrap July 23, 2021

Pop some popcorn. It’s time for some political theater. Congress is gearing up for another debt ceiling fight. In this episode of the Friday Gold Wrap podcast, host Mike Maharey gives you a preview of the next big Washington DC blockbuster production, complete with some debt ceiling history and an explanation as to why we shouldn’t need one. Maharrey also covers retail sales, inflation and the latest movement in the gold market.The SchiffGold Friday Gold Wrap podcast combines a succinct...

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Peter Schiff: The Markets Are Afraid of the Wrong Thing

The markets have been jittery lately. The mainstream remains concerned about inflation – more specifically that the Fed is going to tighten monetary policy sooner rather than later to fight rising prices. But in his podcast, Peter Schiff makes the case that the markets are afraid of the wrong thing. They shouldn’t be worried about the Fed fighting inflation. They should be worried that it won’t.There was a big global selloff in stocks earlier this week. The Dow was down nearly 900 points...

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Peter Schiff: The Fed’s Real Power – The Power to Destroy

PBS Frontline recently released a documentary titled “The Power of the Fed.” Peter Schiff watched it and offered his analysis of the show on his podcast. He said the documentary missed the real power of the Fed — the power to destroy. Peter said his expectations for the production were pretty low.As low as I set the bar, I didn’t set it low enough. Because they didn’t even meet my low expectations.”A lot of people said the documentary exposed the Fed, but Peter said he...

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