There has been a lot of talk about tariffs over the last eight years, and in this election year, you are likely to hear even more. This is not anything new – debates in American politics over tariffs go back to the nation’s beginning. Alexander Hamilton, the nation’s first treasury secretary, asserted that tariffs were Read more
Economic Outlook
Dueling Surveys: What’s the Real Employment Story?
The Federal Reserve’s modern statutory mandate, as described in the 1977 amendment to the Federal Reserve Act, is to promote maximum employment and stable prices. These goals are commonly referred to as the dual mandate. High levels of employment are key to a vibrant economy. Maximum employment promotes business investment, thus boosting productivity and the economy’s Read more
A Shear Guessing Game: Will the Fed Cut Rates?
The Federal Reserve’s battle against inflation had gone better than expected until it recently got bogged down. Thus, the effort to combat inflation can’t be called a victory just yet. Though the initial predictions for Fed rate cuts for 2024 ranged from three to six, expectations have shifted dramatically with the market now pricing in Read more
Raise the Roof: The Housing Market Challenges
Spring home-buying season is here. Amid historically low housing stock, a combination of still-high mortgage rates and home prices continues to put homeownership out of reach for many—especially first-time buyers. Owning a home has many virtues. It creates stability for a family, supports longer-lasting connections in a community, and is a store of wealth for Read more
When Not If: Economic Data and The Fed’s Rate Cut(s)
The Federal Reserve increased rate in 2022 and 2023 as the central bank sought to contain surging inflation. Now, in 2024, with price pressures easing and the economy still strong, Fed officials are poised to bring rates down at a slower pace. Because the Fed’s benchmark rate influences lending costs for mortgages, cars, and credit Read more
Great Greenbacks: Why the U.S. Dollar Dominates Reserve Currency
A reserve currency is held by a nation’s central banks in significant quantities and widely used to conduct international trade and financial proceedings, thus eliminating the costs of settling transactions involving different currencies. Any reserve currency must be easily convertible and have a stable value. The factors that determine the usage of a country’s currency Read more