This week, the Federal Reserve lowered interest rates by a quarter percent. They stated in the release of minutes the conflicting data and the differing opinions regarding future interest-rate policy. The messaging was confusing and not definitive.
The Federal Reserve continues to be divided...
How low are interest rates? They are so low that the government is now considering offering 50-year bonds to capitalize on current low rates. The theory would be investor demand for a 50-year bond because of the likelihood that at some point (over the next three or four decades) inflation will...
This week I thought I would update you on a topic that is garnering worldwide headlines. The Brexit drama in the United Kingdom continues as the Prime Minister and legislators continue to fight over the impending Brexit deadline.
Essentially, Brexit is designed to remove the United Kingdom from...
It’s hard to imagine, but it does appear that the housing market is finally softening. The days of multiple offers seem to have faded and there is a slowdown in the buying habits of real estate investors. Sales figures have varied depending on the area, but on a national basis there does appear...
Is a recession coming? That's the big question investors are asking nowadays as the economy continues to slow and global trade creates uncertainty. There is no doubt the tariffs have slowed economic growth in the United States, and we believe that will likely continue. We continue to monitor...
If you listen to my KCBS interview, you will hear me briefly describe what a yield curve inversion is and why it is important. I thought it might be helpful to provide additional information and insight on what this means for the economy and investors.
A normal yield curve is characterized by...
This week, China set the price of their currency to the US dollar at 7.0136 per dollar (above 7) which has not occurred in many years. A weak currency makes Chinese goods cheaper for purchasers outside of China and the United States deems this to be a practice that is unfair competition with US...
The Federal Reserve this week cut interest rates by 1/4 of a percent citing growing concern regarding the global economy. Chairman Powell took great care to suggest that the reduction in rates was not related to the US economy and stated that he believes expansion can continue. Instead, he cited...
This is an incredibly boring subject I know. I've mentioned it many times and perhaps it gets a bit old. But I feel it is important to say it once again; deficits matter. The higher the deficit, the greater impact on long-term economic growth as debt service costs sap potential economic expansion....
There is no doubt that the US economy is slowing. GDP growth is less than it has been for the last two years, which has prompted many to suggest that the Federal Reserve should lower rates. It appears as if they will in the next two meetings.
Still, despite softness in the economy, there are...
Chairman Powell from the Federal Reserve recently testified before Congress about the Federal Reserve's perspective on economic growth and inflation. In particular, he was asked about the independence of the Federal Reserve and if that is an important issue. His firm response was yes. He...
