2018-10-23 12:36:00 Tue ET
federal reserve monetary policy treasury dollar employment inflation interest rate exchange rate macrofinance recession systemic risk economic growth central bank fomc greenback forward guidance euro capital global financial cycle credit cycle yield curve
Former Fed Chair Paul Volcker releases his memoir, talks about American public governance, and worries about plutocracy in America. Volcker suggests that public governance entails running the government with few unproductive policy debates. As the U.S. central bank, the Federal Reserve need not adhere to an explicit 2% symmetric inflation target. The current neutral interest rate hike can continue even when inflation rises above the target range of 2%-2.5%. Volcker supports stronger supervisory powers for both the Federal Reserve and Treasury. Both regulatory agencies should continue to conduct regular macroprudential stress tests on the systemically-important financial institutions (SIFIs) once per year in the post-Dodd-Frank era. SIFIs should build up sufficient core capital buffers to safeguard against extreme losses that might arise in rare times of financial stress. Also, the Volcker rule separates commercial bank activities from proprietary investment transactions. This firewall serves as a safety valve between safe bank deposits and risky asset investments.
Volcker worries about the impact of money on the U.S. political system, and he expresses grave concerns about the recent trend that America seems to devolve into a plutocracy. In his view, U.S. democratic regulations should restrict the direct influence of crazy rich Americans over political affairs.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2017-05-31 06:36:00 Wednesday ET
The Federal Reserve rubber-stamps the positive conclusion that all of the 34 major banks pass their annual CCAR macro stress tests for the first time since
2019-08-24 14:38:00 Saturday ET
Warren Buffett warns that the current cap ratio of U.S. stock market capitalization to real GDP seems to be much higher than the long-run average benchmark.
2019-06-21 13:33:00 Friday ET
Amazon and Google face more intense antitrust scrutiny. In recent times, Justice Department and Federal Trade Commission have reached an internal agreement
2023-08-31 10:22:00 Thursday ET
Government intervention remains a major influence over global trade, finance, and technology. Nowadays, many governments tend to eschew common ownership
2022-10-05 08:24:00 Wednesday ET
Precautionary-motive and agency reasons for corporate cash management Bates, Kahle, and Stulz (JF 2009) empirically find that public firms have doubled t
2017-09-25 09:42:00 Monday ET
President Trump has allowed most JFK files to be released to the general public. This batch of documents reveals many details of the assassination of Presid