Posts Tagged ‘Federal Reserve’


The Fed’s QE3 and the Bank-Stock Connection

The Federal Reserve’s third round of Quantitative Easing, that massive stimulus program intended to boost the economy in the years following the housing collapse of 2008, officially ended in October 2014. But as the dust settles, some financial experts point out that it may have been banks and stocks that benefited most. The much-publicized housing […]

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AMA

How Does the Fed Manage Inflation?

Cycles of inflation and its opposite number deflation have been part of the American financial landscape for well over a century. While some of these cycles are affected by outside events such as wartime, what many consumers don’t know is that our very own central bank, the Federal Reserve, plays a very active role in […]

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AMA

Inflation Rate Models Make a Difference

Inflation is a word that strikes dread into the hearts of American consumers, who know that when it’s headed their way, their hard earned dollars will buy less. But different models of measuring inflation can make a big difference in how scary those numbers can be. Inflation and its opposite number deflation have been around […]

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What’s Behind the World’s Debt Crisis?

On one spring day in late April 2014, the world’s debt clock checked in at a staggering $60, 656, 668, 640,014. That number changes by the minute, as do the totals for interest accrued – over $1,000 every minute. The world is deep in debt – and becoming more indebted every minute, with no end […]

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Do Currency Wars Drive World Economies?

The major powers may rattle sabers and troops and weapons may move in places all around the globe, but there’s another, quieter kind of war that has the power to make or break economies. Global “currency wars” like the one we’re In right now affect rates of exchange, inflation, and the flow of goods and […]

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The Dollar Becomes a Crowded Trade

The US dollar continues to trade strong in world markets. But as it continues its climb, some market watchers worry that it might be time to put on the brakes. According to a recent article from Business Insider, the dollar has become what’s known as a “crowded trade” in the international money markets. What’s more, […]

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Will Deflation Derail World Economies?

Low prices delight consumers. But those falling prices may signal darker days ahead in the form of deflation, which flattens economies and leads to long-term recession. As prices drop and sales flatten in many of the world’s leading economies, experts fear a global epidemic of deflation that could have long-term effects on local and international […]

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Deflation and Oil Prices: Should Investors Worry?

Oil prices are falling, dropping below $200 USD for a barrel of crude. And while that makes US consumers happy, the tumble in prices is fueling worries of a looming round of deflation that could ripple throughout the economy and trigger another round of intervention by the Federal Reserve. Because petroleum products play an enormous […]

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Who’s Winning the Currency Wars?

It sounds like the plot of a bad science fiction movie. A mysterious, invisible war is going on behind the scenes of the world’s major banks, with cutthroat brinkmanship and dirty strategies to get the upper hand in the global currency markets. It’s not the plot of a grade B flick, but by many accounts, […]

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Bond Rates Plunge – But Where’s the Crisis?

Ever since the financial collapse and recession of a few years ago, financial experts have been watching the sky or signs of falling. They’ve scrutinized the behavior o US assets at home and on the world stage for sings of another collapse and recession. Currently topping the list of assets to worry about: the plunging […]

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Interest Rates: Trends for 2015?

With every new year comes a round of predictions about the financial future. This year, as in many others, the fate of interest rates in 2015 and beyond is the subject of speculation, most of it pessimistic. Financial experts and economists are once again predicting that US interest rates will soar in the coming months. […]

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The Bitcoin Bounces Back

After a rough couple of years, the Bitcoin is surging back with a vengeance. Just a year after its fall from grace in the Silk Road drug site scandal, the digital currency’s market value has even beaten gold in the world’s markets. Whether hailed as a welcome alternative to government-controlled currencies or despised as a […]

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The Dollar: The World’s Go-To Currency

When your country’s facing economic turmoil, who you gonna call? For worried consumers around the globe, the obvious answer is the trusty US dollar. Just ask the Russians. As Russia slides deeper into economic crisis, dollars are in high demand, followed by the euro. That leaves the country’s own currency, the ruble, far behind. As […]

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Is the Fed Finally Ending the Stimulus?

Is it curtains for QE3? The Federal Reserve has announced that Quantitative Easing, round three, better known as QE3, is coming to an end – although key interest rates won’t rise until mid-2015. The end of the stimulus also marks the end of a massive experiment in government intervention that sparked debate both at home […]

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Lower Credit Standards: Economic Boost or Bust?

We’ve always been told that success depends on setting high standards. Lowering your standards, so the conventional wisdom goes, leads to accepting low quality and ultimately bad outcomes. But in a bid to offset a sluggish recovery, the US government is advocating just that, with proposals on several fronts to lower borrowing standards to make […]

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US Dollar Rides High in World Markets

After the roller coaster ride of recent recession years, the US dollar is on top again – at least for now. And its strong showing against other world currencies may be due to the Federal Reserve’s much-maligned Quantitative Easing plan. According to a recent Business Insider article on the performance of the dollar and other […]

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Do Borrowers Need Banks?

Banks are an essential part of the financial landscape – or at least, they’d like you to think so. But are they? New banking alternatives may be making the traditional bank loan a thing of the past. The traditional banking model has been around for centuries, supersized to today’s massive institutions like Bank of America, […]

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The Fed’s Stimulus Strategy: Silencing Skeptics?

In the end, did hard easing work? That contradictory term for Qualitative Easing version 3, the Federal Reserve’s controversial and much disputed stimulus plan, has been in the news and on the minds of economists and financial advisers since it was conceived in 2012 as the latest attempt to boost the nation’s economic recovery. From […]

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Money Talks — But What Does It Say?

What does your money say? Of course, most of the time, we’re more concerned with what money can buy – and what various institutions like the Federal Reserve and the megabanks are doing with it. But a country’s history, culture and values are written on the coins and bills it keeps in circulation. Case in […]

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Who is the Fed and What Is It Doing With Your Money?

The Fed, aka the Federal Reserve, has been making more headlines since the housing collapse of a few years ago than at any time in its history, thanks largely to its ongoing but fading stimulus program aimed at keeping interest rates low. But the Fed does far more than that. Like a puppet master in […]

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