The Data Leaks That Move Markets

In financial markets, data security relates to the timing of data releases because premature releases or leaks unfairly favor one group of investors.

Pondering the Bunker Hill Theory of Inflation

As the source of monetary policy, the Federal Reserve has to decide if interest rates should rise when inflation is low but a jobs recovery has begun.

The Mystery of the Missing Marijuana Money

Federal Reserve monetary policy is not taking account of money from marijuana retailers because banks in Colorado have refused to give them accounts.

One Song, Two Graphs and the Fed’s Dual Mandate

Because the Congress established a dual mandate of high employment and price stability for the Federal Reserve’s monetary policy, they created a dilemma.

How the Fed Solves the Old Money Problem

Part of keeping the money supply at the right level involves the Fed monitoring the paper money that enters circulation and recycling cash that leaves it.

Who, How and When We Use Cash

Although coin and currency are costly to transport and secure, still, cash is a key component of the money supply that people use for low value payments.

My Two Cents About Pennies

Expensive for the U.S. mint and worthless to consumers, the penny still remains a part of the U.S. money supply although phase-out laws have been proposed.

What We Should Know About Monetary Policy

Having heard Janet Yellen’s press conference yesterday, I learned that the Federal Reserve expects that the economy will improve, their bond buying will diminish and, during the foreseeable future, interest rates will start to ascend. And yes, she spoke about unemployment and…

One Reason That Quitting is Good

I have read that Fed Chair Janet Yellen is particularly interested in JOLTS. Representing Job Openings and Labor market Turnover Survey, JOLTS data tell an interesting story. You can see how the trend in job openings parallels the Great Recession…

Humor in Fed Transcripts

Below, just a reminder of one piece of the Great Recession before looking at the Fed transcripts. Lehman Brothers is the orange line.   With a typical 5-year lag, the transcripts of the 2008 Federal Open Market Committee (FOMC) meetings…