Economy

Federal Reserve Brings Out The Nukes

by Jonathan Custer

The Federal Reserve cut its key policy interest rate to zero joining forces with other central banks to keep the global financial system from seizing up due to fallout from the coronavirus pandemic.  The Fed acted quickly after the  US government bond market began to convulse late in the week with interest rates spiking after …

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Waiting For The Rebound, Rationality Shall Prevail

by Jonathan Custer

The U.S. stock market was an accident waiting to happen as valuations were historically excessive before the coronavirus struck.  Moreover,  markets are very distorted due to all the government intervention and the Federal Reserve’s extraordinary monetary policy since the Great Financial Crisis (GFC).   The traditional economic signals extracted from the financial markets are no longer …

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