Search Results for: reserve

The U.S. Unemployment Rate Is Historically Low But the FOMC projection suggests that the unemployment rate cannot improve indefinitely. Image: Federal Reserve Bank of Richmond

Fed Rate Cut Is Not Necessarily a Sell Signal This chart shows the S&P 500 Index performance, 6 and 12 months after an initial Federal Reserve rate cut. You may also like “S&P 500 Performance Around Previous Fed Cuts.” Image: LPL Research

Recession Indicator – Unemployment Rate (3-Month Average) Relative to Prior 12-Month Low Even if the unemployment rate is a lagging indicator, the “Sahm recession indicator” forecasts a recession when the 3-month moving average national unemployment rate exceeds its minimum over previous 12 months by 0.5 percentage points. Picture source : Claudia Sahm, Board of Governors…

Oil Is Really a Curse for Venezuela The irony is that the proven oil reserves in Venezuela are recognized as the largest in the world! Picture Source: Bloomberg

Why the Fed Can’t Raise Interest Rates Above Inflation Rate, Today? The Federal Reserve can’t raise the Fed funds rate above the inflation rate because the US productivity growth is too weak.Net Domestic Investment to GDP is in a long-term downtrend and reduces productivity.This makes it difficult to see the Fed funds rate exceed the…

Economist Jeremy Siegel: Fed should think about lowering rates Jeremy Siegel is the Russell E. Palmer Professor of Finance at the Wharton School of the University of Pennsylvania in Philadelphia. He discusses his view on the Federal Reserve and the current 10-year rate.