Federal Reserve

Our economy is currently in the middle of its longest economic expansion ever.  Sometimes it’s tough to imagine the Great Recession ended over a decade ago or that the first recession of this century started over 18 years ago.  During both downturns, output was in steep decline and firms were hemorrhaging jobs by the hundreds of thousands each week (e.g., in March 2009, the net

At Tuesday’s Pie Party, a question about the Repo Market (thanks Jerry S.) started the meeting.  After a quick definition, we concluded it has largely moved back to normal, and the system is working orderly once again. 

Insensitivity is on the rise.  It’s taking the world by storm.

April 2019 Chicago Fed National Activity Index

Industrial Production staged a minor comeback in February 2019 after a stumble at the start of the year.  America’s output of all physically made good increased 0.1 percent in the period.  This modest uptick follows the upwardly revised decline of 0.4 percent (originally minus 0.6 percent).

Prices paid by producers and wholesalers rose marginally in February 2019 according to the Bureau of Labor Statistics.  Their Producer Price Index rose 0.1 percent after declining a similar amount in both December and January.  Year-over-year, this price proxy is up 1.9 percent, declining modestly from 2.0 percent in January. 

Prices increased for Americans during the month of February 2019 according to the Bureau of Labor Statistics’ Consumer Price Index (CPI).  On a seasonally adjusted basis, this inflation measure increased 0.2 percent.  Year-over-year, the all items index increased 1.5 percent. 

Monetary policies executed by the Federal Open Market Committee (FOMC) are designed to fulfill our central bank’s dual mandate: full-employment and price stability.  What the heck do those terms mean?