The Trouble With the Fed’s Inflation Target

Sep11

The Trouble With the Fed’s Inflation Target

Posted by Mark Pettinga

The idea of an inflation target was established in January 2012, in the aftermath of the 2008-09 financial and economic crisis. The Fed said then that an explicit goal would help promote the central bank’s dual mandate: low unemployment consistent with stable prices. And in … Read More »

 
 
Jul24

The Baffling Mystery of Inflation Deflation

Posted by Mark Pettinga

The core consumer price index eked out a year-over-year increase of just 1.7% in June, the slowest in two years. Stripping out shelter costs, core inflation grew just 0.6%, the most sluggish rate since 2004. Personal-consumption expenditures are growing at a 1.4% pace, shy of … Read More »

 
 
Jul17

Dovish Yellen Spurs Markets to Soar

Posted by Mark Pettinga

U.S. stocks climbed to another record close on Friday, driven by continued prospects of low interest rates and by strong second-quarter corporate earnings reports, particularly from the banks.

The main force behind the rally was the dovish performance by Federal Reserve Chair Janet Yellen in … Read More »

 
 
Jul10

Stocks Threatened by Looming End of Low Rates

Posted by Mark Pettinga

Last week Ray Dalio, head of the Bridgewater mega-hedge funds, declared that the era in which central banks drove interest rates to zero and created boatloads of liquidity is coming to an end. Their activity pushed up asset prices and drove nominal interest rates below … Read More »

 
 
Jun07

Jeffrey Gundlach: Bet on Emerging Markets

Posted by Mark Pettinga

Beauty may be in the eye of the beholder, but value is a more objective attribute, at least as it concerns investing.

Now, some investors are contemplating a bold emerging market trade after Jeffrey Gundlach, the head of DoubleLine … Read More »