Peter's Blog

Fed Officials Claim They Can Shrink the Balance Sheet a Lot More; They Can’t

Federal Reserve officials insist they can still shrink the balance sheet significantly more than they already have. You can file this assertion under the same category as “inflation is transitory,” and “the problems in the subprime mortgage market are contained.” In other words, Fed officials have detached from reality — again.

The Trillion-Dollar Coin: A Dumb Idea That Won’t Go Away

Policy wonks and government people come up with some really dumb ideas. And a lot of those dumb ideas just won’t go away. Now that we’re in the early stages of the fake debt ceiling fight, a really dumb idea has been resurrected from the dead – the trillion-dollar coin.

Here We Go Again! It’s Time for Another Debt Ceiling Fight

Here we go again. The clock is ticking down to another US debt ceiling fight. According to Treasury Secretary Janet Yellen, the US government will officially bump up against the debt ceiling Thursday (Jan. 19).

Is “Cooling” CPI Setting the Stage for More Inflation?

Based on the headline numbers, price inflation cooled again in December, boosting market optimism that the Federal Reserve will continue to ease off the pedal on its monetary tightening. But this could be setting the stage for more price inflation down the road. And a deeper look at the data reveals that a lot of […]

Have You Broken That New Year’s Resolution Yet?

We’re just a few days into the new year. How are resolutions going? Mine are going fantastic! I didn’t make any.

Slow Pace of Balance Sheet Reduction Calls Into Question Fed’s Commitment to Inflation Fight

Most people have focused on Federal Reserve interest rate cuts as it battles price inflation. But there is another element in the inflation fight most people ignore – balance sheet reduction. It isn’t going well.

Big Spending Bill Is a Big Problem for the Fed’s Inflation Fight

Just before Christmas, Congress passed a massive omnibus spending bill. This is yet another blow to the Federal Reserve’s feckless fight against inflation.

The Fed Is Making Things Up as It Goes Along

The Federal Reserve would like you to think that it is scientifically guiding the economy with carefully calculated monetary policy. The truth is the Fed is making things up as it goes along.

In Surprise Move Bank of Japan Allows Bond Yields to Rise

While most central banks around the world have tightened monetary policy in an attempt to bring price inflation under control, Japan has done the exact opposite. But in a surprise move, the Bank of Japan widened its target range for 10-year Japanese bond yields, effectively raising the interest rate. The move strengthened the yen, put […]

Silver and Gold! Or Peppermint?

‘Tis the season for Christmas specials. I’m not going to lie – even as a grown man, I love watching Christmas specials. Snoopy decorating his dog house. The Grinch folding up the Christmas tree like an umbrella and stuffing it up the chimney. And Frosty the snowman melting in the greenhouse.