by sslifer | Apr 4, 2024 | Federal Reserve, NumberNomics Notes
April 4, 2024 M-2 consists of funds that businesses can use to pay their workers, pay the rent, and keep the lights on, or that consumer can use to pay their rent or mortgage, their car loan, or buy food. Thus, it is a measure of liquidity in the economy. In March...
by sslifer | Apr 4, 2024 | Federal Reserve, NumberNomics Notes
April 4, 2024 When extreme measures to combat the spread of the corona virus were put into place in mid-March 2020 and the economy fell off a cliff, the Federal government implemented a $3.0 trillion fiscal stimulus package to help stem the slide. At the same time...
by sslifer | Jun 29, 2022 | Federal Reserve, NumberNomics Notes
April 4, 2024 In the wake of the economic meltdown caused by the government’s dramatic measures to halt the spread of the corona virus the Fed leaped into action. It boosted its balance sheet by about $3.0 trillion in March and April 2020 primarily via...
by sslifer | Feb 3, 2021 | Federal Reserve, Interest Rates, NumberNomics Notes
February 3, 2021 Once the recession began in December 2007 the Fed tried to stimulate the economy and ultimately pushed the funds rate almost to 0%. It remained at that record low level until December 2015 With the funds rate at 0% and inflation persistently falling...
by sslifer | Jan 15, 2021 | Federal Reserve, Interest Rates, NumberNomics Notes
January 15, 2021 The federal funds rate is the overnight rate that banks charge each other to borrow/lend reserves. Some banks have more reserves than they need. Others (principally large banks) are short of reserves and must borrow from other banks in the system,...
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