Markets Rally on Rate Cut Hopes

Hold aside the obvious contradiction for a moment — Why does the greatest economy ever necessitate rate cuts? — and consider for a moment the effective jawboning at the Federal Reserve. POTUS on down have…

Market Rally on Rate Cut Hopes

Hold aside the obvious contradiction for a moment — Why does the greatest economy ever necessitate rate cuts? — and consider for a moment the effective jawboning at the Federal Reserve. POTUS on down have…

The Bifurcated Economic Recovery Continues

The Economy Is Booming. So Is Financial Stress.Even after a decade of recovery, family balance sheets show that gains in security have been narrow while exposure to downturns remains broad.Bloomberg, May 30, 2019    …

Lessons of 2008, by Scott Sumner

I have a new piece in the Cato Journal, discussing the lessons of 2008. Here is a summary: [T]here are 10 key lessons to be learned from theevents of 2008: 1. Unstable NGDP represents a…

The Fed’s too slow, by Scott Sumner

There are a number of weaknesses to using “central planning” in the implementation of monetary policy. Today we see another example—slow decision-making. Whereas markets move at lightening speed, committees of bureaucrats tend to move quite…

A Geographic Perspective of Financial Distress

There is a fascinating research piece by the St. Louis Federal Reserve Bank: The Unequal Recovery: Measuring Financial Distress by ZIP Code.” They used a clever data analysis to delve more deeply into household finances…