{"id":41794,"date":"2018-12-19T08:37:12","date_gmt":"2018-12-19T13:37:12","guid":{"rendered":"https:\/\/olduvai.ca\/?p=41794"},"modified":"2018-12-19T08:37:12","modified_gmt":"2018-12-19T13:37:12","slug":"the-fed-is-panicking","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=41794","title":{"rendered":"The Fed Is Panicking"},"content":{"rendered":"
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The Fed Is Panicking<\/a><\/h3>\n

This week I\u2019ve been in Washington, D.C. for high level meetings focused on the economy. While meeting with senior officials and members of the House and Senate, it became clear that a troubling phenomenon is building.<\/p>\n

\"Nomi<\/p>\n

Your correspondent at the Eccles Federal Reserve
\nBoard Building in Washington D.C.<\/em><\/p>\n

In the wake of recent stock market volatility and uncertainty surrounding monetary policy, it seems that political figures are starting to grow concerned.<\/p>\n

There is growing consensus that the makings of a financial crisis of some sort is building \u2014 and could drop sooner rather than later. While there is speculation over whether it will be as big as the last one, and whether it will come in waves, the belief is that something is wrong.<\/p>\n

With those fears, I turned the Federal Reserve itself. While meeting at the Fed, I was given the impression that bank regulators have been routinely chastised by Wall Street bankers. What I learned is that some of the biggest playmakers in finance don\u2019t want to disclose the true nature of their positions and money-making schemes. This confirmed my own experiences as an former investment banker.<\/p>\n

In addition, it became clearer that Fed Chairman, Jay Powell, and Vice Chairman, Randal Quarles, will be closely studying real economic and bank data when rendering decisions about the path of interest rates. Many have speculated about such dealings, and whether they will be swayed by President Trump\u2019s pressure.<\/p>\n

The truth is that the leaders at the Fed have a firmer understanding of what\u2019s really going on in the economy than they allude to publicly. Even though the Fed has been able to avoid another financial crisis the last decade, with quantitative easing (QE) policy \u2014 or what I call dark money<\/em> \u2014 their \u201ctoolkit\u201d might not render us \u201csafe enough.\u201d They need to grapple with this reality.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Fed Is Panicking This week I\u2019ve been in Washington, D.C. for high level meetings focused on the economy. While meeting with senior officials and members of the House and Senate, it became clear that a troubling phenomenon is building. Your correspondent at the Eccles Federal Reserve Board Building in Washington D.C. In the wake […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[11023,5389,303,431,534,575,661,662,3650,865],"class_list":["post-41794","post","type-post","status-publish","format-standard","hentry","category-economics","tag-daily-reckoning","tag-dark-money","tag-fed","tag-interest-rates","tag-monetary-policy","tag-nomi-prins","tag-qe","tag-quantitative-easing","tag-us-federal-reserve","tag-washington"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/41794","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=41794"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/41794\/revisions"}],"predecessor-version":[{"id":41795,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/41794\/revisions\/41795"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=41794"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=41794"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=41794"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}