St Louis Fed

St Louis Fed

Like Everything Else, History Repeats (Almost Exactly) Because Power Truly Corrupts

The FOMC has no idea what it is doing, just like Bank of Japan officials about a decade before them. Rather than learn from all the experimentation, the power and prestige still, somehow, afforded to all of them is just too much to give up. They would clearly rather keep themselves on top of the political power structure as it relates to the economy than to admit what is increasingly obvious (a second time).

Time To Get Real, Part 2: "We Need Their Drugs"

On the current path, the world is experiencing the largest artificial asset allocation in modern history, one that is driven by a misguided interest rate regime that has lost its efficacy and is producing more harm than good. Yet the fear of withdrawal pain is keeping central bankers from doing the inevitable: Quit. The response is predictable: "I need the drugs!"

Magical Thinking

... the more we embrace and encourage state-directed magical thinking, whether it’s of the monetary or fiscal policy sort, what we are actually doing is opening the city gates to the old evil magic and the alt-priests of fascism and totalitarianism.

"All Eyes On Central Banks" In September, But "No Reason To Smile"

September will be quite a busy month for investors since there are around 30 major central banks meetings scheduled. Since the Bank of England’s last policy announcement, the total monthly amount in global official quantitative easing has reached almost $200 billion, which corresponds, for the purpose of comparison, to Portugal’s annual GDP in 2015. Long-rumoured and oft-discussed, QE infinity is now a reality.

The Reckoning Looms - Central Bankers Really Don't Know What They're Doing

What is happening this year is astounding. After saying year after year after year that the recovery is coming, and even doing so to the point of condescension, the admissions of wrongfulness are starting to roll in, if only softly at first. How ludicrous does “transitory” look now?

Why Is FaceBook Funding "Anti-Fed" Activists

That's what St. Louis Fed president James Bullard would like to know: "I think that Dustin Moskovitz should be here, maybe he can helicopter in from Sun Valley or something instead of sending all these people, if he wants low interest rates."

Why The Average American Is Angry (In 6 Simple Charts)

The last 20 years have brought great wealth to a few while most of the population was lucky to break even. Whether you’re a member of the elite/protected class or one of the unprotected, it’s hard to deny this reality. Globalization has created divisions between skilled and unskilled workers. Too few of the gains from growing trade are going to the unprotected class. They’re angry. We’re seeing this backlash now in people’s attraction to Trump, who promise to bring jobs back.