Carl Menger Center for the Study of Money and Banking http://mengercenter.org Preserving the Ron Paul Legacy Thu, 22 Jun 2017 04:23:33 +0000 en-US hourly 1 https://wordpress.org/?v=4.8 Oh, The Irony http://mengercenter.org/oh-the-irony/ Sat, 22 Apr 2017 02:48:19 +0000 http://mengercenter.org/?p=5876 In case you needed any more evidence that top policymakers are divorced both from reality and from understanding the consequences of their actions, witness Federal Reserve Board Vice Chairman Stanley Fischer’s interview today, in which he stated that “we had a financial crisis which was caused by behavior in the banking and other parts of the financial system and it did enormous damage to this economy.” Sorry, but it wasn’t bad actors in the banking system that caused the financial crisis. The Federal Reserve System was pumping money into the economy as fast as it could, pushing interest rates too low for too long and encouraging excessive risk-taking. Government housing policies were pushing for higher and higher homeownership rates, spurring lenders to reduce their lending standards to meet the government’s targets. And then once the crisis hit the Fed and the federal government tried to wipe their hands of the whole mess and blame everything on a few bad actors. That’s why Dodd-Frank and the whole mess of post-crisis regulations that have come down the pike completely missed the mark. Not only WILL they do nothing to stop a future crisis, they CAN do nothing to stop a future crisis because they misdiagnosed the cause. Dodd-Frank was just an attempt to use the crisis to force through a bevy of legislation that otherwise would have floundered in Congress for years. The worst part of it is that even after everyone will have realized that the bill was a complete flop, it will remain on the books for decades.

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Rules for International Monetary Stability http://mengercenter.org/rules-for-international-monetary-stability/ Sat, 22 Apr 2017 02:03:49 +0000 http://mengercenter.org/?p=5873 The Hoover Institution’s DC office held a short event this morning on “Rules for International Monetary Stability” which highlighted papers from last year’s Hoover Institution Monetary Policy Conference. While much of the discussion devolved into the minutiae of the particular monetary rules that “should” be implemented, there was one thing that stuck out to me that didn’t seem to be picked up on either by the audience or by the presenters. Professor Michael Bordo, in his presentation on monetary policy rules mentioned on several occasions how well the international gold standard worked as a monetary policy rule from 1880 to 1914. However, he also stated that it “stopped working” after World War I.

But as George Selgin and others have pointed out, not only did it work well, it didn’t just “stop working” – it was done away with by governments the world over. The gold standard was a hindrance to government spending, so governments around the world decided to jettison it. That was not a fault of the gold standard, it was a feature, keeping governments from being able to print money ad infinitum. Once governments got off gold, all sorts of mischief ensued – bank holidays, successive devaluations, hyperinflation, etc. I was tempted to ask the presenters: “If the gold standard worked so well, why not use that as the monetary policy rule going forward?” You can hear the scoffing now, and the protestations that the gold standard is impractical and that’s why it was abandoned. But in reality, the gold standard is no different than the Taylor Rule or any other monetary policy rule – once it begins to handcuff the government’s ability to inflate its way out of a recession it will be discarded. Fiscal dominance will always win out.

At the end of the day, discussions about central bank independence are moot. The success of any monetary policy rule, or indeed any monetary policy, is dependent on the government’s AND the central bank’s willingness to voluntarily set very limited boundaries for its own actions and to adhere to those boundaries. Once those boundaries have been crossed, the credibility of the government or the central bank to withdraw and retrench within those boundaries is gone. That’s what we face today. Central banks that have engaged in relentless quantitative easing, credit accommodation, and experimental negative interest rate policies cannot be trusted to return even to a pre-crisis monetary policy stance, let alone anything resembling a stable monetary policy rule.

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First Quarter: Temporary Slide or Precursor to the Plunge? http://mengercenter.org/first-quarter-temporary-slide-or-precursor-to-the-plunge/ Sat, 22 Apr 2017 01:34:31 +0000 http://mengercenter.org/?p=5874 Fed Vice Chairman Stanley Fischer today said that weak growth in the US economy in the first quarter is likely only temporary, and that the Fed could continue on with its planned rate hikes. Time will tell whether he’s right or wrong, but there is so much evidence out there that the economy is dependent on central bank money printing for its continued health that we can’t help but think that Fischer really isn’t in tune with what’s going on. Once the central bank stock and bond purchases wind down, stock markets will lose their luster, markets will begin to panic, and in the absence of any further quantitative easing the malinvestments that have been propagated through a decade of easy money will eventually be brought to light. Fischer, like most economists of the past few decades, doesn’t understand the consequences of his actions because of his failure to believe the teachings of Austrian Business Cycle Theory. That disbelief is irrelevant, however, and the consequences of the Fed’s decisions will occur regardless. When they do, let this post be a reminder that the Vice Chairman of the most powerful central bank in the world didn’t see the crisis coming.

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Personnel Is Policy: Who Donald Trump Could Appoint To The Fed http://mengercenter.org/personnel-is-policy-who-donald-trump-could-appoint-to-the-fed/ http://mengercenter.org/personnel-is-policy-who-donald-trump-could-appoint-to-the-fed/#comments Fri, 21 Apr 2017 21:08:02 +0000 http://mengercenter.org/?p=5734 There is perhaps no better way of summing up the direction of any organization than the phrase: “Personnel is policy.” With regard to government, that means that the people who are put into positions of power indicate the direction of actual policy more clearly than the President’s statements. President Ronald Reagan’s tenure was a good example of this. Despite his many public statements in favor of gold, his appointments to key positions and in particular to the Gold Commission were people who undermined his publicly-stated positions. Whether he was aware of this or not is up for debate, especially as we now know of his battle with Alzheimer’s.

That is the danger that might face the current Trump Administration where, despite his many public statements favorable to the gold standard, President Trump may end up appointing officials who hold exactly the opposite view as he does. This is particularly important now that news outlets have been reporting this week that President Trump is set to appoint Randal Quarles to the Federal Reserve Board as Vice Chairman of Regulation. Mr. Quarles’ biography is as establishment as it comes. He received his A.B. from Columbia University and his J.D. from Yale Law School. He worked at the Carlyle Group, a leading private equity firm whose close political connections to former senior Administration officials are legendary. His wife is Hope Eccles, grand-niece of Marriner Eccles, the Federal Reserve Board’s Chairman from 1934-1948, after whom the Fed’s headquarters building is named. Mr. Quarles also served as Under Secretary of the US Treasury, Assistant Secretary of the Treasury for International Affairs, US Executive Director of the IMF, US Executive Director of the European Bank for Reconstruction and Development, etc. Doesn’t exactly sound like a guy who is about to shake things up, right?

While his nomination isn’t official yet, let’s look at some other possible candidates President Trump might appoint to the Federal Reserve’s Board of Governors. We’ve split them into four categories.

1. The Dream Team – those candidates who would be the best possible from the perspective of those of us favoring sound monetary policy.

2. Establishment Favorites – the favorite candidates of the Establishment, or those already under consideration by the Administration.

3. The Compromise Candidates – these candidates are all former Presidents of regional Federal Reserve Banks. While they wouldn’t be the first choices of either the Establishment or of advocates of sound monetary policy, sending former regional Fed Presidents to serve on the Board might send a message to the Board to take into account not just the views of the Washington/New York financial-political elites.

4. The Dark Horses – while perfectly qualified for serving on the Board, these candidates are probably not as well known to the general public, and even to most policymakers, as some of the others.

Remember, President Trump will have at least four appointments to make in his first term, maybe even five if Chairman Yellen resigns her seat after her chairmanship is up, so his decisions on appointments could have a strong impact on the conduct of monetary policy going forward.

The Dream Team

Ron Paul

You’d be hard-pressed to find a libertarian or libertarian-leaning economist who wouldn’t drool at the idea of Dr. Paul being placed on the Federal Reserve’s Board of Governors, preferably as its chairman. The author of legislation to audit the Fed, end the Fed, and allow for a system of competing currencies, Dr. Paul understands the problems with the Federal Reserve System better than anyone else in Washington. Of course, he understands that appointing good people to bad agencies isn’t going to solve any problems, so the likelihood of him accepting a nomination is slim.

Jim Grant

The long-time publisher of Grant’s Interest Rate Observer and frequent TV commentator on MSNBC, Bloomberg, and other media outlets, Jim Grant would be Dr. Paul’s choice for chairman of the Fed’s Board of Governors. Combining decades of up-close observation of New York’s capital markets with a keen knowledge of economics and economic history, Mr. Grant would make a great additional the Fed’s Board. But because he has been so publicly outspoken in his criticism of Federal Reserve policies, he probably has enemies within the Administration who would try to stymie his nomination.

John Allison

The former CEO of BB&T and former President of the Cato Institute, he rivals Dr. Paul in his willingness to embrace radical policies to fix systemic problems facing the banking system. He is perhaps the biggest name aside from Dr. Paul to advocate for the abolition of government-subsidized deposit insurance. While this would force banks to act more prudently, eliminating government deposit insurance is a political minefield that would require delicate and astute communications policies and public relations in order to bring it about. Still, that someone of his stature would even stick his neck out to advocate for such actions is a very good sign. Mr. Allison had previously been touted as a possible Treasury Secretary pick, so let’s hope that he’s still somewhere on Mr. Trump’s draft board.

Peter Schiff

The founder of EuroPacific Capital, Schiff has been an outspoken critic of the Federal Reserve’s loose monetary policy. As one of the few analysts to spot the growing housing bubble during the mid-2000s, Schiff was roundly and repeatedly criticized during his national media appearances for being a Chicken Little. Events proved him correct, however, and he was more than happy to make his critics eat crow. Loud, outspoken, and opinionated, Schiff would certainly shake up Federal Reserve Board meetings and ensure lively and heated debate. But more importantly, Schiff has an understanding of economics and reality that most Fed economists don’t. Which is why he probably won’t get a nomination.

Establishment Favorites

John Taylor

The creator of the eponymous “Taylor Rule,” Taylor is a fixture within Republican circles in Washington. Any Congressional hearing on monetary policy is almost guaranteed to have Dr. Taylor as a witness. Given his decades-long reputation within the economics profession, Taylor should be a shoo-in for a Fed nomination, once President Trump gets around to fleshing out his picks.

Glenn Hubbard

The dean of the business school at Columbia University and a former chairman of the Council of Economic Advisors, Hubbard was touted as a potential Fed chairman pick during the George W. Bush Administration. The selection of Ben Bernanke instead gave rise to one of the funniest Fed-related parody videos on YouTube. Hubbard’s name has been floating around as a potential Fed chairman pick in the event that Janet Yellen decides to resign at the end of her term as chairman.

Kevin Warsh

A former Governor on the Federal Reserve Board, Warsh’s name has been mentioned with respect to some of the open Fed Board Governor slots, particularly the Vice Chairman for Regulation slot that now seems to be going to Randal Quarles. Warsh obviously has the experience to return to the Board, the question then would be whether he would receive a nomination or whether he would even want to return.

Tom Vartanian

Vartanian was a former Reagan Administration official who is currently a partner at Dechert LLP. His name had been circulating as a possible pick for the Fed’s Vice Chairman for Regulation, a position that currently seems likely to be filled by Randal Quarles. Whether Vartanian would be considered for another of the open slots remains to be seen.

The Compromise Candidates

Tom Hoenig

The former President of the Kansas City Fed, Hoenig currently serves as Vice Chairman of the Federal Deposit Insurance Corporation (FDIC). His name was also mentioned as a possible choice for the Fed’s Vice Chairman for Regulation. His current work at FDIC certainly sets him up well for that position, and his reputation as a monetary policy hawk would certainly put the Fed on notice that tightening would be the name of the game going forward.

Richard Fisher

Fisher has a reputation for being relatively hawkish and for wanting to break up the big banks. Appointing him would send a message that business as usual is over. The major strike against him in terms of getting a nomination is that fact that he was formerly a Democratic candidate for Congress and has made some comments that are critical of President Trump. It’s doubtful that he would be willing to play nice and walk back some of his comments in order to get nominated to the Board.

Charles Plosser

Plosser, the former President of the Philadelphia Fed, was another Fed President who had a reputation for being a monetary policy hawk. Does he have the connections among Trump Administration decisionmakers to get a spot on the Board?

Jeffrey Lacker

Lacker just recently stepped down from his position as President of the Richmond Fed, having originally been scheduled to step down in October of 2017. He resigned under a cloud, having acknowledged that he discussed sensitive internal FOMC information with a financial industry analyst. However, he was one of the more outspoken monetary policy hawks and had staffers working for him at the Richmond Fed who seemed more aware of the dangers of extraordinary monetary policy than many members of the Fed’s Board. Would his “scandal” keep him from getting a nomination, or might he be rewarded for being the Fed’s fall guy by getting an appointment to the Board?

The Dark Horses

Lew Lehrman

The former President of Rite-Aid, Mr. Lehrman was a former gubernatorial candidate in New York, and a member of the United States Gold Commission, where he and Dr. Ron Paul co-authored the Commission’s Minority Report, later republished as The Case for Gold. An ardent supporter of the gold standard, Mr. Lehrman founded “The Gold Standard Now” to advocate for a return to the gold standard.

Judy Shelton

Dr. Shelton is an economist who served as an advisor to President Trump. She directs the Atlas Network’s Sound Money Project and assisted in President Trump’s transition. A former senior research fellow at the Hoover Institution, Dr. Shelton is well connected in monetary policy circles and is strongly sympathetic to the gold standard.

David Stockman

Mr. Stockman is a former Congressman and former Director of the Office of Management and Budget. A strong critic of current Federal Reserve policies, Mr. Stockman remains active in writing at his website, David Stockman’s Contra Corner. He is perhaps best-known for his criticism of the federal government’s budget policies, arguing that continued deficit spending cannot be maintained indefinitely.

William White

Dr. White is the former Head of the Monetary and Economic Department of the Bank for International Settlements (BIS), the “central bankers’ central bank.” He is most famous for warning about the growing housing bubble before it burst and for criticizing then-Fed Chairman Alan Greenspan’s monetary policy. The only knock against him is his non-US citizenship, although that shouldn’t prove too high a hurdle. And with President Trump as the chief decider, an accelerated path to US citizenship could almost certainly be arranged should that be needed.

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Daily Money & Banking News Update: 4/20/2017 http://mengercenter.org/daily-money-banking-news-update-4202017/ Fri, 21 Apr 2017 01:51:17 +0000 http://mengercenter.org/?p=5868
  • The IMF Just Finished Its First “High Level” Meeting on Blockchain (CoinDesk)
  • Fed’s Powell Says Parts of Too-Big-To-Fail Rules “Unnecessarily Burdensome” and May Not Be Needed at All (CNBC)
  • Brief Remarks by Governor Jerome Powell (Federal Reserve Board)
  • What the Gold Standard Is and Why It “Failed” (Sound Money Project)
  • Fed’s Powell Open to Adjusting Post-Crisis Bank Regulation (Fox Business)
  • US House Banking Chairman Unveils Dodd-Frank Replacement (Reuters)
  • Mastercard Creates Credit Card With Fingerprint Scanner (CNBC)
  • Federal Reserve Announces Two Enforcement Actions Against Deutsche Bank AG (Federal Reserve Board)
  • Bank of England’s Carney Calls for “Dynamic” Financial Rules (CNBC)
  • BOJ’s Kuroda Warns Against Policies Unwinding Free Trade (Fox Business)
  • Fed’s Powell Suggests Streamlining Bank Stress Tests (Fox Business)
  • Global Finance Leaders Find a More Temperate Trump in Washington (Reuters)
  • The US Can’t Afford Trump’s $1 Trillion Infrastructure Spending, Warns Former Fed Chief Greenspan (CNBC)
  • The Market Suddenly Doubts the Fed Will Raise Rates Twice More This Year (CNBC)
  • Trump to Sign “Financial-Related” Executive Actions on Friday: Sources (CNBC)
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    Daily Money & Banking News Update: 4/19/2017 http://mengercenter.org/daily-money-banking-news-update-4192017/ Thu, 20 Apr 2017 02:00:25 +0000 http://mengercenter.org/?p=5862
  • International Effects of Recent Policy Tightening: Speech by Vice Chairman Stanley Fischer (Federal Reserve Board)
  • China Eases Yuan Outflow Controls in Sign of Recovered Confidence (CNBC)
  • Boston Fed President Discusses Central Bank Asset Purchases, Balance Sheets (Boston Fed)
  • Fed’s Rosengren Wants to Shrink Balance Sheet So Slowly That Rate Hikes Can Continue at Same Time (MarketWatch)
  • Trump “Absolutely Not” Trying to Talk Down Dollar – Treasury’s Mnuchin (Reuters)
  • Fed’s Fischer: US Monetary Policy Normalization Likely to Be Gradual (CNBC)
  • European Banks Need More Than Simple Business Restructuring, IMF Warns (CNBC)
  • Federal Reserve Should Act Predictably to Avoid Big Market Moves, Says IMF Director (CNBC)
  • Fed Beige Book: Modest Wage Growth Is Broadening (Wall Street Journal)
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    Daily Money & Banking News Update: 4/18/2017 http://mengercenter.org/daily-money-banking-news-update-4182017/ Wed, 19 Apr 2017 02:14:11 +0000 http://mengercenter.org/?p=5860
  • US Spooks Compromised SWIFT Banking Network: Hackers Group (Cointelegraph)
  • Former Coordinator of the Plunge Protection Team to Be Nominated by Trump for Top Federal Reserve Position (Economic Policy Journal)
  • Atlanta and NY Fed Cut US First Quarter GDP View After Weak Data (CNBC)
  • Monetary Policy Expectations and Surprises: Speech by Vice Chairman Stanley Fischer (Federal Reserve Board)
  • How a Trump Presidency Poses Big Questions for IMF and World Bank (Financial Times)
  • Will the French Election Shake the Euro and the Markets? (Financial Times)
  • Unlike Yellen, Rumored New Fed Bank Supervision Chief Supports Rule-Based Interest Rates (MarketWatch)
  • Fed Official Backs Bond Paring This Year (CNBC)
  • Switzerland Is Not Manipulating Its Currency (CNBC)
  • Maduro Preparing to Swap Venezuela’s Gold for Dollars (Zerohedge)
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    Daily Money & Banking News Update: 4/13/2017 http://mengercenter.org/daily-money-banking-news-update-4132017/ Fri, 14 Apr 2017 05:40:26 +0000 http://mengercenter.org/?p=5854
  • Time Has Come for Banks to Prepare for Interest Rate Rises: Bundesbank (CNBC)
  • Trump Administration Narrows List for Fed Regulatory Post (CNBC)
  • Curtains for Global Financial Regulation (Wall Street Journal)
  • Jamie Dimon Says Fixing Mortgage Industry Would Boost Lending by $300 Billion a Year (MarketWatch)
  • Trump’s Foreign Exchange Wobbles Risk Backlash at Home (Financial Times)
  • Big US Banks Defy Calls That They Should Be Broken Up (Financial Times)
  • Wall Street CEOs Downplay Risk of New Bank Breakup Law (Reuters)
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    Daily Money & Banking News Update: 4/12/2017 http://mengercenter.org/daily-money-banking-news-update-4122017/ Thu, 13 Apr 2017 03:57:46 +0000 http://mengercenter.org/?p=5852
  • India’s Government to Consider New Digital Currency Rules (CoinDesk)
  • Moody’s: Don’t Expect US to Lead Blockchain Adoption (CoinDesk)
  • Royal Mint Blockchain Gold Project Gets BitGo, Alphapoint as Partners (Cointelegraph)
  • Federal Reserve Vice Chairman Just Held a Secretive Off-the-Record Private Meeting With Insiders: WHY? (Economic Policy Journal)
  • Fed’s Kaplan Says Balance Sheet Plans Won’t Shift Rate Hike Path (CNBC)
  • How Big a Problem Is the Zero Lower Bound on Interest Rates? (Ben Bernanke’s Blog)
  • Bernanke’s Conundrum: Why Do Investors Trust the Fed? (MarketWatch)
  • Bitcoin Value Rises Over $1 Billion as Japan, Russia Move to Legitimize Cryptocurrency (CNBC)
  • This Digital Currency Is About to Succeed Where Bitcoin Has Failed (MarketWatch)
  • Trump: China Not a Currency Manipulator, Trade Deficit OK in Exchange for Help on North Korea (MarketWatch)
  • Trump Won’t Rule Out Second Yellen Term, Signaling Drift to the Mainstream (Reuters)
  • Why Did Trump Flip Flop on Yellen? She May Be the Dove He Needs, Analysts Say (MarketWatch)
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    Daily Money & Banking News Update: 4/11/2017 http://mengercenter.org/daily-money-banking-news-update-4112017/ Wed, 12 Apr 2017 03:18:42 +0000 http://mengercenter.org/?p=5849
  • Banks Scramble to Fix Old Systems as IT “Cowboys” Ride Into Sunset (CNBC)
  • The Fed Could Use Less Book Learning and More Street Smarts (Wall Street Journal)
  • New York Fed, Two More Wanted No Discount Rate Change in March (CNBC)
  • Inflation Hawk Lacker Was the Fed’s Fall Guy (Mises Institute)
  • Minutes of the Board’s Discount Rate Meetings From February 13 Through March 15, 2017 (Federal Reserve Board)
  • Neel Kashkari at the Minnesota Business Partnership (Minneapolis Fed)
  • Trump’s Message to Bankers: Wall Street Reform Rules May Be Eliminated (Reuters)
  • Fed’s Kashkari Sees Room for Improvement on Inflation, Jobs (CNBC)
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    Daily Money & Banking News Update: 4/10/2017 http://mengercenter.org/daily-money-banking-news-update-4102017/ Tue, 11 Apr 2017 00:38:01 +0000 http://mengercenter.org/?p=5844
  • The US College Debt Bubble Is Becoming Dangerous (Financial Times)
  • Cybertheft Attempt on Indian Bank Resembles Bangladesh Heist (Wall Street Journal)
  • US Fed Could End Reinvestment Policy This Year: Fed’s Bullard (CNBC)
  • Euro Exit for Italy or France Would Be a Trauma (Financial Times)
  • Bank of England Pushed Banks to Rig LIBOR, Secret BBC Tape Suggests (MarketWatch)
  • Bank of England Asks Financial Firms to Submit Brexit Contingency Plans (MercoPress)
  • “Best Banker in America” Blamed for Wells Fargo Sales Scandal (Reuters)
  • European Regulators Offer Brexit Sweeteners to Investment Banks (Reuters)
  • Bank of England Drawn Into LIBOR Probe, Assists Serious Fraud Office (CNBC)
  • IMF Warns Protectionism and Monetary Tightening to Hurt Emerging Markets (CNBC)
  • Yellen Says Fed’s Efforts Shifting From Acceleration to Cruise Control (MarketWatch)
  • The Tyvek Banknotes of Haiti (Coin Update)
  • Yellen Says Fed’s Independence Under Threat From Congress (Fox Business)
  • Fed’s Yellen Aims to Let “Healthy” US Economy Coast Along (Reuters)
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    Daily Money & Banking News Update: 4/7/2017 http://mengercenter.org/daily-money-banking-news-update-472017/ Sat, 08 Apr 2017 04:12:22 +0000 http://mengercenter.org/?p=5841
  • Bank of England’s Carney Calls for UK-EU Rules Pact After Brexit (CNBC)
  • Fed’s Kashkari to Jamie Dimon: It’s “Nothing Personal” – Big Banks Need to Double Their Safety Nets (CNBC)
  • ECB’s Praet Says It’s Too Early to Start Discussing a Reduction of Bond Buying (CNBC)
  • Principles for Financial Regulatory Reform: Speech by William Dudley (New York Fed)
  • Fed’s Dudley Says US Should Consider Small Changes to Financial Regulation (CNBC)
  • Fed’s Dudley Stakes Out Third Position on Too Big to Fail (MarketWatch)
  • US Regulator Removes Top Examiner for Wells Fargo – Sources (Reuters)
  • Wall Street Sees Fed Balance Sheet Normalization Plan by Year End: Reuters Poll (Reuters)
  • Venezuela Clinches $300 Million Deal With New York Fund: Sources (Reuters)
  • China Forex Reserves Rose for Second Straight Month in March (Wall Street Journal)
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    Daily Money & Banking News Update: 4/6/2017 http://mengercenter.org/daily-money-banking-news-update-462017/ Fri, 07 Apr 2017 03:04:01 +0000 http://mengercenter.org/?p=5838
  • Fed Can Start Unwinding Stimulus This Year: Williams (CNBC)
  • Gary Cohn Supports Splitting Lending and Investment Banks: Bloomberg (CNBC)
  • Banks, Insurers May Suffer If US Gets Stuck in a Low Interest Rate Economy, IMF Says (MarketWatch)
  • The Stock and Real Estate Markets Will Tumble Once the ECB Follows the Fed (MarketWatch)
  • The Next Step in Europe’s Negative Interest Rate Experiment (Mises Institute)
  • What Two Billion Retail Transactions Reveal About Consumers’ Choice of Payments (Richmond Fed)
  • Dollar-Denominated Cryptocurrencies: Flops and Tethered Success (Cato Institute)
  • PCGS to Begin Branch-Mint ID for Certain American Silver Eagles; Gives Tips on How to Identify the Branch (Coin Update)
  • White House’s Cohn Backs Return to Glass-Steagall Law: Report (MarketWatch)
  • Germany Is Doubling Down on Its Resistance to ECB Stimulus… and It’s Now Affecting the Euro (CNBC)
  • Draghi Says ECB’s Policy Stance Is Still Appropriate, Too Soon to Reduce Stimulus (CNBC)
  • NY Fed Disagrees With Minutes: Does Not Expect Balance Sheet Renormalization Until Mid-2018 (Zerohedge)
  • ECB Calls for Tougher Regulation of Foreign Bank Branches (Reuters)
  • Fed’s Kashkari Says JPMorgan’s Jamie Dimon Is Dead Wrong About Banks (CNBC)
  • The Fed’s New Frontier: What Happens, Why It Matters, and What Could Go Wrong (CNBC)
  • ECB’s Mario Draghi: It’s Too Soon to Reduce Stimulus (Wall Street Journal)
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    Daily Money & Banking News Update: 4/5/2017 http://mengercenter.org/daily-money-banking-news-update-452017/ Thu, 06 Apr 2017 03:40:41 +0000 http://mengercenter.org/?p=5835
  • Fed Plans to Shrink Balance Sheet This Year, Minutes Show (MarketWatch)
  • Trump Continues to Ignore Monetary Policy – And It Will Cost Him (Mises Institute)
  • Fannie and Freddie’s New Bubble (Mises Institute)
  • Minutes of the March 14-15 Federal Open Market Committee Meeting (Federal Reserve Board)
  • Welcoming Remarks by Governor Jerome Powell (Federal Reserve Board)
  • European Union: New €50 “Europa” Series Banknote Issued Today (Coin Update)
  • Fed’s Tarullo May Have Provided “Major Headache Relief” for Biggest Banks in His Farewell Speech (MarketWatch)
  • Most Fed Policymakers See Change to Balance Sheet Policy “Later This year”: Minutes (Reuters)
  • Wall Street Falls as Fed Minutes Reverse Earlier Rally (Reuters)
  • Wells Fargo’s Aggressive Sales Tactics Hit Small Firms: WSJ (Reuters)
  • US Consumer Financial Protection Chief Defends Agency Before Congress (Reuters)
  • Fed Officials Say the Stock Market May Be Overvalued and History Shows They Are Often Right (CNBC)
  • Fed Officials Expect to Whittle Down Portfolio Later This Year: Minutes (Wall Street Journal)
  • Former Fed Policymaker Lockhart Says Lacker Leak Could “Very Well Be Inadvertent” (CNBC)
  • Mexican Central Bank Says Trump’s Tweets Modified Peso Strategy (Reuters)
  • Financial Institutions Risk 24 Percent Revenue Loss From Fintech: PwC (Reuters)
  • Former Fed Advisor Says the Central Bank Shouldn’t Comment on Equities (CNBC)
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    Daily Money & Banking News Update: 4/4/2017 http://mengercenter.org/daily-money-banking-news-update-442017/ Wed, 05 Apr 2017 02:24:21 +0000 http://mengercenter.org/?p=5832
  • Wrong Lessons From Canada’s Private Currency, Part 3 (Alt-M)
  • Fed Reshuffle to Put Focus on Regulation and Bank Stress Tests (Financial Times)
  • Majority of French Voters Want an EU Referendum: Citi (CNBC)
  • Federal Reserve Is Committed to Maintaining the Security of Confidential FOMC Information (Federal Reserve Board)
  • Richmond Fed Head Resigns, Admits Improper Discussions (Yahoo Finance)
  • Departing Thoughts: Speech by Governor Daniel Tarullo (Federal Reserve Board)
  • Big Banks Are Raking in the Revenue From the Trump Trade (CNBC)
  • Fed’s Tarullo Says Volcker Rule May Be Hurting Trading (MarketWatch)
  • Amazon’s Next Customer: Americans Who Don’t Have a Bank Account (MarketWatch)
  • How the Global Debt Pile Rose to “Eye-Watering” Levels (MarketWatch)
  • Richmond Fed President Quits After Disclosing He Leaked Sensitive Information (MarketWatch)
  • Statement From Mark Bialek Concerning September 2012 FOMC Meeting Information (Office of the Inspector General of the Board of Governors of the Federal Reserve System)
  • How to Wind Down Balance Sheet Will Be Focus of Fed Minutes (MarketWatch)
  • Trump Says Planning “Haircut” for Dodd-Frank Banking Regulations (Reuters)
  • Fed’s Tarullo: Reduction of Capital at US Banks “Would Be Ill-Advised” (CNBC)
  • Bank of America’s CEO Says Lending to Startups, Homebuyers Would Expand If Deregulation Happens (CNBC)
  • Pedro da Costa: “I Tried to Ask Yellen About the Fed Leak” (Zerohedge)
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    Daily Money & Banking News Update: 4/3/2017 http://mengercenter.org/daily-money-banking-news-update-432017/ Tue, 04 Apr 2017 01:57:00 +0000 http://mengercenter.org/?p=5830
  • ECB Warns Governments to Get Set for Higher Rates (CNBC)
  • Why ECB’s Negative-Rate Policy Is Out of Order (Wall Street Journal)
  • Trouble Bubbling Under at Chinese Banks (Wall Street Journal)
  • Cash Cow Credit Cards May Get Hit by UK Bank Regulators (Wall Street Journal)
  • Opening Remarks at the Economic Press Briefing on Household Borrowing, Student Debt Trends, and Homeownership by President William Dudley (New York Fed)
  • Lost in the Balance Sheet Debate – the Fed May Pause Rate Hikes Once Runoff Begins (MarketWatch)
  • Even After Brexit, Central Banks Choose Pounds Over Euros: Survey (MarketWatch)
  • Fintech: Revolution or Evolution? – Speech by President Patrick Harker (Philadelphia Fed)
  • How to Stop Venezuela’s Fatal Inflation (Cato Institute)
  • Fed’s Harker Still Backs Two More Rate Hikes This Year (CNBC)
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    Weekend Money & Banking News Update: 4/1-4/2/2017 http://mengercenter.org/weekend-money-banking-news-update-41-422017/ Mon, 03 Apr 2017 03:51:49 +0000 http://mengercenter.org/?p=5821
  • China Cracks Down on “Financial Ants” Smuggling Cash to Hong Kong (Financial Times)
  • Iceland Weighs Plan to Peg Krona to Another Currency (Financial Times)
  • Euro Is a “Knife in the Ribs” of the French Says Le Pen (Reuters)
  • Iceland Weighs Pegging Its Currency to the Euro, Finance Minister Says (CNBC)
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    Daily Money & Banking News Update: 3/31/2017 http://mengercenter.org/daily-money-banking-news-update-3312017/ Sat, 01 Apr 2017 03:56:23 +0000 http://mengercenter.org/?p=5819
  • Inflation Reaches Fed Target for First Time in Nearly Five Years (MarketWatch)
  • The War on Cash: Old and New (Mises Institute)
  • China’s Global Currency Ambitions Falling Flat With Central Banks (MarketWatch)
  • President Bullard Discusses US Economy, Interest Rates, Fed Balance Sheet at New York Forum (St. Louis Fed)
  • Q&A With Neel Kashkari at the 2017 Banking Law Institute (Minneapolis Fed)
  • Fed’s Bullard Says Economy “Not Screaming” for More Rate Hikes (MarketWatch)
  • Fed’s Dudley Says Two More Interest Rate Hikes This Year “Seems Reasonable” (MarketWatch)
  • Eurozone Technocrats Recommend EU/IMF Mission Chiefs Return to Greece for Bailout Talks (Reuters)
  • Fed’s Kashkari Says Policymakers Want to Trim Balance Sheet (CNBC)
  • China’s Tectonic Shift in Bank Funding (Wall Street Journal)
  • Federal Reserve Readies Plan for Balance Sheet (Wall Street Journal)
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    Daily Money & Banking News Update: 3/30/2017 http://mengercenter.org/daily-money-banking-news-update-3302017/ Fri, 31 Mar 2017 04:02:44 +0000 http://mengercenter.org/?p=5813
  • Global Systemically Important Banks – Revised Assessment Framework – Consultative Document (Bank for International Settlements)
  • Jim Rogers Warns Clueless Federal Reserve Will Be the “Ruins of Us All” (Lewrockwell.com)
  • Fed’s Mester Not Worried About Expected Slowdown in First Quarter GDP (MarketWatch)
  • Fed Officials Say They May Need to Pick Up Pace of Rate Increases (Wall Street Journal)
  • ECB’s Knot Says Central Bank Could Soon Start Unwinding Stimulus (Wall Street Journal)
  • The Importance of Financial Conditions in the Conduct of Monetary Policy (New York Fed)
  • Fed’s Dudley Says Rate Hikes Are Appropriate to Reduce the Risk of Overheating (CNBC)
  • Fed Is Not Taking Away the Punch Bowl, Just Adding “A Bit More Fruit Juice,” Dudley Says (MarketWatch)
  • Fed’s Kaplan Sees Risk Washington Could Derail the Expansion (MarketWatch)
  • The Case for Gradual But Regular Monetary Policy Normalization: Speech by President Eric Rosengren (Boston Fed)
  • On Venezuela’s Death Spiral (Cato Institute)
  • Fed Paper Suggests Investors Get Used to Low Rates (MarketWatch)
  • Even With More Chip Cards Out There, Fraud at ATMs Is Up (MarketWatch)
  • Senate Banking Chair Wants Financial Rules Reform By Early 2018 (Reuters)
  • Fed Sees Car Trouble Down South (Wall Street Journal)
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    Daily Money & Banking News Update: 3/29/2017 http://mengercenter.org/daily-money-banking-news-update-3292017/ Thu, 30 Mar 2017 02:21:07 +0000 http://mengercenter.org/?p=5809
  • UK-Based Banks Already Knocking on Germany’s Door: Bundesbank (Reuters)
  • Trump’s Free Hand on Bank Deregulation (Wall Street Journal)
  • Supreme Court Orders New Look at “Swipe Fees” Law (CNBC)
  • Spooked by Yield Rise, ECB Wary of Changing Message Again (CNBC)
  • Fed’s Evans Says He Supports One or Two More Rate Hikes This Year (Reuters)
  • The Times They Are A-Changin’: Speech by President Charles Evans (Chicago Fed)
  • Are Payments Fast Enough Already? (Atlanta Fed)
  • Why Canada’s Biggest Bank Is Hiring All the Engineers It Can Find (CNBC)
  • Fed’s Williams: Don’t “Rule Out” More Than Three Rate Hikes This Year (CNBC)
  • Fed’s Rosengren Wants Four Rate Hikes This Year (CNBC)
  • Fed’s Rosengren Wants a Rate Hike at Every Other Meeting This Year (MarketWatch)
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