Tag Archives | Janet Yellen

FT

Fed’s economic models applied to a past era

The Financial Times has kindly printed my letter below, welcoming the Fed’s decision to address the impact of demographics, but arguing that it needs to focus on demand issues, given the impact of today’s ageing populations. Sir, It is good to see the US Federal Reserve is finally beginning to address the impact of demographics […]

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Time

Markets question central bank power as Great Reckoning nears

TIME magazine covers often capture the mood of a moment.  And that was certainly true in February 1999, with their now famous cover picturing then US Federal Reserve Chairman, Alan Greenspan, under the heading “The Committee to SAVE the World“. In a further sign of the times, Greenspan was flanked by the US Treasury Secretary […]

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Brexit Oct16

Markets doubt Carney’s claim to have saved 500k UK jobs

Last week as the BBC reported, Bank of England Governor, Mark Carney, explained to an audience in Birmingham that the Bank had saved the UK economy after the Brexit vote in June: “Between 400,000 and 500,000 jobs could have been at risk if the Bank had not taken action after the referendum, he said.  ”We are willing […]

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San Francisco Fed agrees ageing Boomers impact economy

Finally, one of the major Western central banks has agreed that the ageing of the BabyBoomers does indeed have an impact on the economy.  John Fernald of the San Francisco Federal Reserve Bank, wrote in a new paper this week: “Estimates suggest the new normal for U.S. GDP growth has dropped to between 1½ and […]

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Central bankers create debt, not growth, by ignoring demographic reality

The world’s 4 main central bankers love being in the media spotlight.  After decades climbing the academic ladder, or earning millions with investment banks, they have the opportunity to rule the world’s economy – or so they think. But their background is rather strange preparation to take on this role – even if it was […]

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13m missing American workers highlight economic slowdown

There’s something very wrong with the US jobs market, as the slide above confirms.  Commentators professed to be surprised by the disappointing May report last Friday, but its hard to know why: The overall participation rate has been in decline since July 1997, when it reached 68%: today it is only 62.7% Male participation is at […]

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ACC Surplus May16

Surplus chemical industry capacity reaches 26% as demand slows

Global demand is continuing to slow, yet chemical industry capacity is continuing to ramp up.  As a result, supply gluts are likely to appear in many key areas as we move into the second half of the year.  That is the key conclusion from the latest American Chemistry Council data for global chemical capacity and […]

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Deflation Jul13

Central banks head for currency wars as growth policies fail

The world’s central bankers would have been sacked long ago if they were CEOs running companies.  They would also have been voted out, if they were elected officials. Not only have they failed to achieve their promised objectives – constant growth and 2% inflation – they have kept failing to achieve them since the Crisis […]

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Nikkei v Shang Feb16

Tokyo, Shanghai stock markets fall; yen rises 8% in 2 weeks

Pity poor Janet Yellen, you might say.  The head of the US Federal Reserve told the Senate last week that she had been “quite surprised” by the collapse of oil prices since mid-2014.  And she added that the rise of the US$ was similarly “not something that we had expected” (you can see the testimony […]

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Markets need more cash from the Janet Yellen tooth fairy

Central banks have acted as the proverbial tooth fairy towards financial markets in recent years.  But they have not just left a small amount of money under the pillow when a child lost its first tooth.  Instead they have printed trillions of dollars via Quantitative Easing (QE), to persuade investors to buy shares and commodities, […]

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