Fighting the Fed

The Fed Under Fire

The Fed s Communication Breakdown

The Fed s Dollar Distraction

The Chinese Economy and Fed Policy

The Fed in Denial

Audit the Fed?

Blaming the Fed

The Fed vs. the Financiers

The Trapdoors at the Fed s Exit

Will Fed Tightening Choke Emerging Markets?

The Fed was hardly alone.

How the Fed Just Reduced Inequality

Where the Bank of Japan has now led, the Fed should follow.

Why the Fed Buried Monetarism

The Fed pays the banks 0.25 to keep them idle.

Even worse, the Fed is playing with fire.

The FED than takes these notes and trades them for the bonds.

By reappointing a Fed chair chosen by someone else, a president can appear to guarantee financial markets that the Fed is not too much under his thumb.

But now commercial banks are willing to hold their excess reserves at the Fed, because the Fed now pays interest on those deposits.

Once again, the US Federal Reserve is in the eye of the storm.

Today, the Fed is again playing the expectations game.

The US Federal Reserve is finally shifting its thinking.

Then there is the question of the Fed s assisted growth model.

The link between Fed bond purchases and the subsequent growth of the money stock changed after 2008, because the Fed began to pay interest on excess reserves.

By contrast, the Fed s purchases of long term bonds during this period has been unprecedentedly large.

That is why the Fed has been taking steps to become more transparent it releases the minutes of Federal Open Market Committee meetings and publishes transcripts with appropriate delay, while FOMC members give speeches detailing their views. Moreover, in a recent innovation, the Fed now publishes the inflation and interest rate forecasts of FOMC members and Reserve Bank presidents.

The US Constitution, after all, does not guarantee the Fed s independence.

That, in a nutshell, is what the Fed and the ECB are saying.

That, of course, is what the Fed had been hoping for.

The Federal Reserve will not willingly resort to inflation.

Second, the Fed s actions do not seem to be effective.

The Fed declined to regulate these dubious practices.

The Fed should relearn that lesson.

The Fed has printed new bank reserves with reckless abandon.

The Fed can't mess it up so badly.

The US Federal Reserve has embraced aggressive, open ended quantitative easing (QE).

But former US Federal Reserv e Chairman Alan Greenspan warns of inflationary dangers.

This is not a matter of the Fed bailing out investors.

With dollar financing by the Federal Reserve available to large institutions, the Fed became the equivalent of a world central bank.

But then the US Federal Reserve hid these weaknesses by engineering a housing bubble that led to a consumption boom.

Only the Federal Reserve can do that and the Federal Reserve is very unlikely to sacrifice the jobs of American workers on the altar of the strong dollar.

It will also use its new authority to pay interest on the reserves held by commercial banks at the Fed in order to prevent excessive lending.

The founding governors of the Federal Reserve System interpreted their mandate narrowly, viewing the Fed as responsible for maintaining gold convertibility and a stable dollar.

True, the US Federal Reserve has tried to prevent a recession by cutting its interest rates. But the Fed cannot endow the banks with new equity capital and prevent a credit crunch.