Headlines have been portending in recent weeks that First Republic Bank could be the next potential failure in a banking crisis that started in March—and that is exactly what has happened. This news comes in the wake of reports published by the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) that clearly identify the cause of recent bank failures: the regulators themselves.
In March, the Consumer Price Index was 8.5% higher than the same time last year—the highest inflation the U.S. has seen since 1981. Many observers, including one of us, underestimated how severe inflation would be. More importantly, many central bankers, including those at the Federal Reserve, were too sanguine about rising prices.
Investors may take the Federal Reserve’s first post-pandemic interest rate hike in stride, while uncertainty over the Ukraine crisis continues to hang over markets.
In the latest episode of the Keiser Report, Max and Stacy analyze a recent policy shift announced by the US Federal Reserve and compare it with a fraudulent scheme. Max referred to reports about the latest Uber scam called “vomit fraud.” After dropping off a client some drivers claimed passengers made a mess in the […]
The $3 trillion rescue plan by the US Federal Reserve to limit the economic damage from the Covid-19 pandemic is fueling excesses across US capital markets, investors say. The Fed has pledged unlimited financial asset purchases to sustain market liquidity, increasing its balance sheet from $4.2 trillion in February to $7 trillion currently. Most of […]
The Federal Reserve announced a barrage of new programs to help keep the market functioning.
Among the moves is an open-ended commitment to keep buying assets under its quantitative easing measures.
There are multiple other programs, including one for Main Street business lending and others aimed at keeping credit flowing.
The Fed will be moving for the first time into corporate bonds, purchasing the investment-grade securities in primary and secondary markets and through exchange-traded funds.
Investors could be forgiven for having whiplash after the events of the past week.
Central banks aren’t perfect, but they work best when politicians aren’t calling the shots. That pillar of monetary policy is now under siege.
