federal reserve

Are Too Big To Fail Banks Safe?

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Reading Time: 4 minutes Too Big To Fail Definition The definition of the term “too big to fail” refers to a company that poses negative systemic risk to the entire economy in the event of failure. Thus far no firm designated as too big to fail has failed, therefore this is a theory, one…CONTINUE READING

Why Isn’t The Federal Reserve Audited?

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Reading Time: 5 minutes Senator Rand Paul’s ideas have been gaining traction, probably because he is much more pragmatic than his father, Ron Paul. Rand sees what each side wants in a negotiation and finds a suitable solution that all parties can agree on. His ideas for the framework of healthcare legislation would have…CONTINUE READING

How The Federal Reserve Decides Policy

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Reading Time: 4 minutes The Federal Reserve has a dual mandate to form an economic environment which keeps prices stable and has maximum stable employment. The Dual Mandate Bullseye chart does a great job of showing the policy objective the Fed has. As you can see, the x axis has an unemployment gauge and the…CONTINUE READING

The Next Fed Chair: A $7.4 Trillion Decision

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Reading Time: 4 minutes President Trump’s pick for the next Federal Reserve chair person is like a real-life offshoot of the Apprentice except the stakes are the fate of the global economy, meaning they are slightly higher. The three top contenders are Kevin Warsh, Jerome Powell, and Janet Yellen. Gary Cohn’s stock dropped in…CONTINUE READING

Pause In Rate Hikes; Weak Jobs Report

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Reading Time: 4 minutes Two topics that took center stage this past week have been the Federal Reserve’s supposed change (perceived tightening) in its monetary policy and the monthly Bureau of Labor Statistics (BLS) report. The Fed clarified its forward guidance this week in a speech by Bill Dudley, president of the Federal Reserve…CONTINUE READING

Central Bank Monetary Cliff Awaits

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Reading Time: 4 minutes Ever since the financial crisis in 2008 an experimental monetary policy has been in place, known as quantitative easing. The Federal Reserve expanded its balance sheet from about $800 billion to $4.5 trillion. It bought mortgage bonds and treasury bonds. This had a big effect on almost every asset. Lowering…CONTINUE READING

The Federal Reserve: Everything You Need To Know

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Reading Time: 9 minutes What Is The Federal Reserve? The Federal Reserve System was established on December 23, 1913 with the enactment of the Owen-Glass Act also known as the Federal Reserve Act, making the Federal Reserve System (The Fed) the central bank of the United States. The Federal Reserve System consists of twelve regional…CONTINUE READING

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