Tag Archives: interest

The Myth of the Neutral Interest Rate

In his speech to the Economic Club of New York on November 28 2018, the Federal Reserve Board Chairman Jerome Powell said that the US central bank’s policy interest rate is just below the neutral rate. This prompted many commentators to suggest that a tighter interest rate stance of the Fed is likely coming to an end. At the end ...

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Chicago Levies PlayStation Tax To Pay For Bankrupt Municipal Pension System And Massive Deficits – Confounded Interest

Chicago IL (should be ILL) is the poster child for an insane pension program (mostly to municipal workers and public school teachers). But not only in the city of Chicago, but the state of ILLinois as well. Consider that the unfunded liability in the state’s combined retirement systems has risen in 11 of the state’s past 12 years—despite a roaring ...

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NY Fed’s Williams Says Strong Economy Warrants Further Rate Hikes (As Dow Crashes 800 Points And 10Y-2Y Slope Flattens To 10 BPS) – Confounded Interest

confoundedinterest17 Banking, ECB, Economy, Fed, Powell, SPX, Stocks, Trade, Treasury, Uncategorized, Volatility, Yellen, Yield Curve December 4, 2018December 4, 2018 0 Minutes The Dow crashed 800 points today, most after noon. Which is it? The fear that the Trump-Xie tariff truce is a big nothing burger? Or that NY Fed President came out after noon saying that inflation and jobs ...

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Legend Pierre Lassonde Responds To Yesterday’s KWN Article About The Collapse In Open Interest In The Gold Market

Today legend Pierre Lassonde responded to yesterday’s KWN article about the collapse in open interest in the gold market. December 3 (King World News) – Today legend Pierre Lassonde sent the following communication to King World News in response to the KWN article that was released on Sunday discussing the unprecedented collapse in open interest in the gold market: “We ...

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Oops! LIBOR Spikes Again (LIBOR Leads The Fed Target Rate Increases) – Confounded Interest

confoundedinterest17 Agency MBS, Bank of England, Bank of Japan, Banking, ECB, Economy, Fed, Inflation, LIBOR, Mortgage, Powell, Uncategorized, VIX, Volatility, Yellen November 30, 2018 0 Minutes The London Interbank Offered Rate (LIBOR) has been rising since The Federal Reserve began raising their target rate back in late 2015 and has accelerated as The Fed began rapidly raising its target rate ...

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The US Is Spending $1.5 Billion On Debt Interest Every Day

Several weeks ago, when looking at the US budget data for the recently concluded (Sept 30) Fiscal 2018, we noted that the most troubling observation in the latest data (besides the growing deficit, rising spending and shrinking tax revenues) was that the government paid $523 billion in total interest in fiscal 2018, the highest on record. Alas, this is just the start, ...

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