Peter's Blog

Fed Trims Rates Again—Gold Vaults Past $4,200 Anyway

In a hotly-anticipated announcement, the Federal Open Market Committee shaved its federal-funds target by another quarter point on December 10th, setting the range at 3.50 – 3.75 percent. Fed officials insist the U.S. economy is still expanding at a “moderate pace,” yet the same statement concedes that job gains have cooled and unemployment inched higher […]

13 Week Money Supply Growth Stabilizes at 5%

Money Supply is a very important indicator. It helps show how tight or loose current monetary conditions are regardless of what the Fed is doing with interest rates. Even if the Fed is tight, if Money Supply is increasing, it has an inflationary effect. One key metric shown below is the “Wenzel” 13-week annualized money […]

Fed Governor Waller Calls for More Easing as Inflation Persists  

Federal Reserve Governor Christopher Waller told the Society of Professional Economists in London Monday night that he backs another 25-basis-point cut at the December FOMC meeting, calling the move “additional insurance” against a slowing labor market. His speech, delivered barely a month after a 43-day U.S. government shutdown halted many official releases, leaned heavily on […]

US Government Borrows $1.8T in Four Months

Current Trends The government hit the debt ceiling back in January which blocked any net new debt from being created from January to June. Once the debt ceiling was lifted, the government wasted no time in catching up for all the months where borrowing was frozen. From July through October, the government borrowed an eye […]

The Fed Doubles Down on Easy Money: Rate Cuts Deepen as QT Comes to a Halt

To the relief of many market-movers, last week the FOMC voted to cut rates for the second time this year and announced that the Fed will begin maintaining its balance sheet starting in December. With this return to easy-money, Powell and the Fed are again attempting to paper over economic fault-lines created by their own […]

Schiff on the Latest Rate Cut: Powell Should Listen to Greenspan

Peter joined Fox Business on Wednesday to comment on the Fed’s newest rate cut and analyze the central bank’s precarious position going into the holidays. As with the last rate cut, Peter criticizes loosening monetary policy when inflation is far from under control, and he explains why the bond market isn’t going to play nice […]

What Debt? Just inflate! 13 Week Money Supply Continues Accelerating

Money Supply is a very important indicator. It helps show how tight or loose current monetary conditions are regardless of what the Fed is doing with interest rates. Even if the Fed is tight, if Money Supply is increasing, it has an inflationary effect. One key metric shown below is the “Wenzel” 13-week annualized money […]

The Fed Wouldn’t Cut it as a Normal Bank

The Fed is governed by institutional rules that separate it in operation and incentive from all other banks. Rather than being driven by profit and benevolence, it is ruled by a convoluted system of spoken and unspoken incentives that are often at odds with one another. The purpose of the Fed is nominally to keep […]

Why the Establishment’s Fear of Trump’s Fed Moves Is About Optics, Not Economics

President Trump’s highly publicized feud with Fed Governor Lisa Cook has recently frightened establishment finance types. With all the pearl-clutching surrounding the Fed’s independence, it’s easy to forget that everything the Fed already does is politically motivated. The following article was originally published by the Mises Institute. The opinions expressed do not necessarily reflect those […]

With Its Latest Rate Cut, the Fed Serves Wall Street and the Regime

Last week, the Fed cut interest rates by 25 basis points, the first cut since December. While it claims to be responding to economic conditions, the Fed is really just catering to political and financial elites, who’ve been pressuring the central bank for months. The following article was originally published by the Mises Institute. The […]