Banks Gamble With Almost-Free Money
The Fed has been lending money at record-low rates, but instead of passing on the cash to businesses and consumers, big banks are rolling the dice in the financial markets China and Japan have warned that these American high jinks could once again upend (continued).
The Fed has been lending money at record-low rates, but instead of passing on the cash to businesses and consumers, big banks are rolling the dice in the financial markets. China and Japan have warned that these American high jinks could once again upend the global economy.
The Federal Reserve Board is aware of the problem, as minutes from its latest meeting show. But, at this time, the Fed doesn’t consider the risk dangerous enough to take action. — PZS
Your support is crucial…Bloomberg via Eschaton:
Financial officials in Japan and China, Asia’s two largest economies, said last week that the Fed’s interest-rate policy risks spurring speculative capital that may inflate asset prices and derail the global economic recovery.
“Participants noted that the recent fall in the foreign exchange value of the dollar had been orderly and appeared to reflect an unwinding of safe-haven demand in light of the recovery in financial market conditions this year,” the minutes said. “Any tendency for dollar depreciation to intensify or to put significant upward pressure on inflation would bear close watching.”
With an uncertain future and a new administration casting doubt on press freedoms, the danger is clear: The truth is at risk.
Now is the time to give. Your tax-deductible support allows us to dig deeper, delivering fearless investigative reporting and analysis that exposes what’s really happening — without compromise.
Stand with our courageous journalists. Donate today to protect a free press, uphold democracy and unearth untold stories.
Editorial Cartoons
Politics
The despair of lower-income voters was seen as a political problem rather than an empirical reality.
Editorial Cartoons
Media
As mainstream outlets continue to focus on inflation, consumer sentiment about the economy remains staggeringly low.
Opinion
Staunch capitalists like Gurner tell us every day they want more exploitation and precarity for people just trying to get by.
Ear to the Ground
The administration says the moves will safeguard renters and promote rental affordability.
You need to be a supporter to comment.
There are currently no responses to this article.
Be the first to respond.