If your bank account dropped from $100,000 to $80,000, would you be inclined to spend more, or less? Would it matter if the drop happened all at once, or over 16 months? This is the predicament in which Federal Reserve Chairman front-runner candidate Jerome Powell finds himself.Read More
Financial advisor Tim Hayes brings a unique understanding of the role the Federal Reserve plays in the economy and the implications for your investing decisions.
Starting in 2009, the Federal Reserve added a couple trillion dollars of new money to the economy through a quantitative easing program of buying bonds from banks and non-banks. Now the Feds reportedly want to reduce their balance sheet by selling those bonds.Read More
Why Tax Cuts, Combined with the Federal Reserve Reducing its Balance Sheet, is So Risky for Our Economy
The 1% got $5 trillion of help from the Federal Reserve during QE. The bill for that support, which comes due just as the Fed reduces its balance sheet, just got sent to the middle-class through this new tax bill.Read More
You have probably heard conversations where people worried about what would happen to interest rates if China stopped buying our government debt. Moreover, before China, people were concerned about Japan.Read More
Add ex-Federal Reserve Chairman Alan Greenspan to the list of experts warning about a bond market bubble. Speaking in late July to Bloomberg News, Greenspan warned, “Equity bears hunting for excess in the stock market might be better off worrying about bond prices… That is where the actual bubble is, and when it pops, it’ll be bad for everyone.Read More