Federal Reserve

Industrial production was strong in August 2018 according to the latest data from the Federal Reserve. Output of all physically made wares increased 0.4 percent.  Perhaps more importantly, this uptick was on the heels of July’s upwardly revised tally which also grew 0.4 percent (originally 0.1 percent), and June’s increase of 0.4 percent as well.

Our central bank is charged with a dual mandate.  In short, they are trying to steer the economy toward two seemingly opposing goals: full-employment and steady inflation.  When trying to focus on bolstering employment, the Federal Reserve tends to keep interest rates low which encourages borrowing, thus boosting output and, ultimately, jobs.  Alternatively, during periods of hig

Fire and Ice

Incomes and outlays improved to start the second quarter of this year according to the Bureau of Economic Analysis.  Personal income rose 0.3 percent in April 2018, and spending jumped 0.6 percent.  Disposable personal income (DPI), aka after-tax pay, rose 0.4 percent or $60.9 billion, leading to some decay in the nation’s savings rate. 

Long ago I was told the tale of an ancient shaman who, approached by a woman who seemed incapable of bearing a child, suggested she sleep with her husband on a lion’s hide.  Lo and behold she gave birth shortly thereafter to a son.  A curious friend who also was barren asked her what caused the miracle.  Thereupon she too visited the shaman, was given a tiger’s hide,