Richardcyoung.com

The Online Home of Author and Investor, Dick Young

  • Home
  • How We Are Different
  • Debbie Young
  • About Us
    • Foundation Principles
    • Contributors
  • Investing
    • You’ve Read The Last Issue of Intelligence Report, Now What?
  • Your Survival Guy
  • The Great Reset
  • The Swiss Way
  • My Rifles
  • Dividends and Compounding
  • Your Security
  • Dick Young
  • Key West
  • Paris
  • Dick’s R&B Top 100
  • Liberty & Freedom Map
  • Bank Credit & Money
  • Your Survival Guy’s Super States
  • NNT & Cholesterol
  • Your Health
  • Ron Paul
  • US Treasury Yield Curve: My Favorite Investor Tool
  • Anti-Gun Control
  • Anti-Digital Currency
  • World Gold Mine Production

Malpass: The Fed has a Mental Block

March 23, 2015 By E.J. Smith - Your Survival Guy

Federal Reserve Chairwoman Janet Yellen

David Malpass writes in the Wall Street Journal that the Fed hasn’t recognized the poor results of its policy making. Without realizing its ineffectiveness the Fed won’t be able to make the necessary course corrections.

On Wednesday Fed Chair Janet Yellen emphasized that the Fed is data dependent, implying that the economy will have to do better to win rate hikes. Due to recent membership changes, the voting members of the FOMC are particularly inclined to keeping rates low. The problem is that the Fed’s track record each year since 2011 has been to lower its forecast during the calendar year rather than raise it. If the economy again disappoints the Fed, the decision to hike rates will get harder as the year progresses.

The latest waffling over the timing of rate hikes has another negative effect. The Fed says it wants to keep reinvesting its staggering $4.5 trillion bond portfolio until after rate hikes get under way. That means more months or years with the Fed buying massive amounts of long-term bonds as short-term bonds mature. As a result, any delay in rate hikes keeps the Fed at the center of bond market distortions that much longer, slowing growth.

This is all happening in the context of weak foreign currencies and growth rates, referred to discreetly in Wednesday’s FOMC statement. That provides another excuse for delay.

Last but not least, there was no hint in Wednesday’s statement that the Fed recognizes its policies haven’t worked well. By itself, that mental block adds to the risk of slower growth and further delays in rate hikes.

Related video:

Related Posts

  • Grass Fed
  • End the Fed
  • Grass Fed Beef
  • Author
  • Recent Posts
E.J. Smith - Your Survival Guy
E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998.

E.J. has trained at Sig Sauer Academy in Epping, NH, NH, where he completed course-work in Practical and Defensive Handgun, Conceal Carry Pistol, Shotguns, Precision Scope Rifle and Kidnapping Prevention.

E.J. plays a Yamaha Recording Custom drum set with Zilldjian cymbals. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris.

Please get in touch with E.J. at ejsmith@yoursurvivalguy.com

Click here to sign up for my free monthly Survive & Thrive letter.
Latest posts by E.J. Smith - Your Survival Guy (see all)
  • Rome, Paris, U.S.A.: Global Crisis in Confidence - June 2, 2023
  • Your Survival Guy’s Best Insider’s Guide to Rome - June 2, 2023
  • Birth Rates in France Worst Since Post-WWII Era - June 1, 2023

Dick Young’s Must Reads

  • Why Black Lives Matter Needs to Be Shut Down
  • Meet Me at Freddy’s June 2022
  • Democracy & Diversity: Not In the Constitution
  • DIGITAL ID: You Are More than a Soulless Digital Identity
  • Thanks to America’s Worst President
  • A Look at the Future of Main Street America
  • The Worst President in American History
  • Vermont Abandoned, Dairy Farm Economy Devastated
  • Why Some Kids Won’t Go Back to School, Ever
  • The Forgotten America

Disclosure

RSS Youngresearch.com

  • Rome, Paris, U.S.A.: Global Crisis in Confidence
  • June Is Retirement Compounders Month
  • What Is a Fiduciary Duty? Are You Working with a Fiduciary?
  • FOOD CRISIS? Ukraine Says Russia Is Blocking Grain Exports
  • Delivery Robots Coming to More Cities with Uber Eats
  • Western Sanctions on Russia Have Strengthened Its Ties to India, China
  • Birth Rates in France Worst Since Post-WWII Era
  • A Cashless Society Is A Debacle for Americans
  • Democracy: The Most Dangerous and Insidious Effect of Majority Rule.
  • What’s the Alternative to China for Manufacturers?

RSS Yoursurvivalguy.com

  • Rome, Paris, U.S.A.: Global Crisis in Confidence
  • Your Survival Guy’s Best Insider’s Guide to Rome
  • What Is a Fiduciary Duty? Are You Working with a Fiduciary?
  • Survive and Thrive June 2023: Your Survival Guy in Rome 30-Years A.B. (After Babson)
  • Birth Rates in France Worst Since Post-WWII Era
  • Your Survival Guy Felt Like a U.N. Worker in Rome
  • Social Security: Declining Italy Needs a Bambino Boom
  • ATTACK ON THE IVAN KHURS: Unmanned Vessels Changing Naval Warfare
  • The Future of the American City is This…
  • Happy Memorial Day: Your Survival Guy: Proud To Be an American

Rewarding Loyalty with Ridicule

Rome, Paris, U.S.A.: Global Crisis in Confidence

June Is Retirement Compounders Month

Americans Scared of CBDC Control of Their Money

Your Survival Guy’s Best Insider’s Guide to Rome

Auto Profitability Colliding with Low Emissions

Copyright © 2023 | Terms & Conditions | About Us | Dick Young | Archives