News
Market Watch | Fed set to cut growth forecast during meeting
When it comes to economic growth forecasts, the Federal Reserve, on paper, is as bullish as they come.
Bloomberg | Pound Gains Versus Euro as Officials Fail to Agree on Greek Bailout Loan
The pound advanced versus the euro after European governments failed to agree on releasing a loan payment to Greece, making sterling-denominated assets more attractive.
LA Times | More Fed stimulus? Don't count on it
The economy is weakening again just as the Fed is wrapping up its $600-billion bond-buying program, but the risk of inflation argues against another round of stimulus. Besides, the Fed believes the economy is merely in a 'soft patch' and growth will speed up this summer.
Econ Comments
Minyanville | US Consumer Price Index to Drop in June
Changes in the CPI inflation rate on a year-ago basis and especially CPI ex-shelter are explained by changes in the oil price compared to a year ago.
Blogs
Cato @ Liberty | Boost the Money Supply, Raise Interest Rates
The rate of broad money growth (M3) in the United States is weak (see the accompanying chart). The ultra-low federal funds rate (0.25%) has acted to keep a lid on broad money growth and, in turn, economic activity. Yes, “low” interest rates imposed by the Fed are contributing to a credit crunch and anemic money growth.
Calculated Risk | FOMC Meeting Preview
There will be a two day meeting of the Federal Open Market Committee (FOMC) this coming Tuesday and Wednesday. I expect no changes to the Fed Funds rate, or to the program to reinvest principal payments, or to the Large Scale Asset Purchase program that is scheduled to end this month.
Econlog | What's Different About Banks?
I think that the most important thing that differentiates banks or bank-like firms from other firms is that it is easy for short-term results to be misleading. That is because banks borrow short and lend long.
