News
Market Watch | New Fed voters point out stimulus benefits
Two of the regional Federal Reserve presidents who get to vote on interest-rate decisions on Tuesday made clear their support for the central bank’s extraordinary efforts to boost the economy ahead of a key meeting.
Econ Comments and Analysis
Fox Business | Fitch: ECB Needs to Act to Prevent Euro Collapse
The European Central Bank should ramp up its buying of troubled euro zone debt to support Italy and prevent a "cataclysmic" collapse of the euro, David Riley, the head of sovereign ratings for Fitch, said on Wednesday.
Reuters | The hidden dangers of low interest rates
The Fed’s campaign to hold short-term interest rates near zero is a loser for taxpayers. A rise in rates would also burden taxpayers, but it would come with a benefit for those who save.
Forbes | The Fed's Incredible Rate Forecasting Hubris
The problem is that the Fed’s dual mandate is flawed and the Fed has no business manipulating interest rates, which are relative prices best set by millions of counterparties in free capital markets. There are limits to what monetary policy can accomplish and to forecasting random variables like interest rates and asset prices.
Blogs
WSJ: Real Time Economics | New Kansas City Fed Chief Gives First Policy Speech
While the economy has been picking up lately, there remains a broad-based expectation the central bank will provide additional stimulus at some point this year.
Greg Mankiw's Blog | The Liquidity Trap may soon be over
At the current inflation rate, the unemployment rate needs to drop to 8.3% from the current 8.5% for the model to signal positive rates. We’re getting close."
