Commodities Forex News & Analysis

Jobs Report Should Cock Trigger for Fed Rate Increase

The Labor Department is expected to report Friday that the economy added 203,000 jobs in September, and that should further support Federal Reserve plans to raise interest rates before the end of this year. Bouncing back from a harsh winter, GDP grew at a 3.9 percent annual rate in the second quarter. The balance of […]

Refugee Crisis Lays Bare EU Dysfunctions, Cultural Silos

The millions of refugees pouring into Europe should prove a boon to its slow growing economies. However, with unemployment so high in austerity burdened Mediterranean states, German eagerness to fill jobs with Syrians and other refugees is an indictment of the EU’s dysfunctional economy and cultural rigidities. Numerous economic studies show immigrants boost growth when […]

Republicans Must Change to Win

Presidential campaigns are supposed to be about America, or at least what voters want-not Donald Trump’s and Ben Carson’s clumsy statements and political correctness. Hillary Clinton, even with her integrity impugned, beats GOP hopefuls in head to head polls, because she addresses issues voters care about. Jobs, fairness, education, health care, and equality! Republicans instead […]

Five Things to Know About the Fed Raising Interest Rates

Since 2008, the Federal Reserve has kept the federal funds rate-the banks’ overnight borrowing rate-near zero. Now more confident about prospects for growth and inflation, policymakers are preparing to raise those short-term rates-perhaps at the conclusion of their two day meeting on Thursday or later this year. Higher borrowing costs for banks can cause mortgage […]

Globalization Curbs Federal Reserve’s Options, Impact

Analysts and investors have been searching for clues as to whether Federal Reserve policymakers will begin raising interest rates when they meet next week. However, globalization makes that decision a lot less important than in years past. Keeping interest rates low for prolonged periods of time imposes distortions on the economy. For example, lower earnings […]

Weak Jobs Report Lessens Prospects for Fed Boosting Interest Rates

The Labor Department reported the economy added a disappointing 173,000 jobs in August. The unemployment rate fell to 5.1 percent largely because fewer Americans sought work. Along with recent turbulence in financial markets and fears about the economic slowdown in Europe, this jobs report could delay Fed plans to raise interest rates. Sadly, prolonging low […]

Jobs Report Should Support Fed Interest Rate Boost without Harming Stocks

The Labor Department is expected to report Friday that the economy added 223,000 jobs in August. That would support Federal Reserve plans to begin raising interest rates soon, because keeping those at historically low levels won’t do much to further boost employment or inflation and rock bottom rates impose significant costs on the economy. Previously […]

In the End, Germany, not Greece, Will Be the Loser

Germany is using its size and wealth to compel its Eurozone partners to take a hard line toward Greece but in the end, Germany has much to lose by forcing the Aegean nation to choose between more austerity and dumping the euro. Merkel’s government has cultivated the notions that the Greek government is run by […]

The Greeks Should Vote No!

Sunday, Greeks should vote No! Hellenic voters are being asked whether they accept the terms offered by the European Union, European Central Bank and International Monetary Fund to extend the bailout for Athens’ troubled finances or give Prime Minister Tsipras a mandate to insist on a better deal. Those conditions include more cuts in government […]

Steady Jobs Growth, Fed Likely to Raise Interest Rates

Thursday, the Labor Department is expected to report the economy added 230,000 jobs in June. Hardly robust-monthly gains averaged 260,000 in 2014-but good enough to push the Federal Reserve to raise interest rates soon. Economists expect stronger consumer spending, housing activity and business construction to boost GDP growth to nearly 3 percent by the second […]

Previous Posts