Biggest Plunge in Bond Yields Since Volcker Era on Bank Fears

(Bloomberg) — The shift in short-term interest rate markets Monday was unlike almost anything seen for more than four decades, including even the 2008 financial crisis and the aftermath of the S...

Real Estate Has Lost Its Prime Engine

There’s no free lunch. Everything costs something, and most things measure their cost in money. So how does money measure its cost? In interest rates. And as everyone knows, the cost of money is going...

Deepest Bond Yield Inversion Since Volcker Suggests Hard Landing

(Bloomberg) — The bond market is doubling down on the prospect of a US recession after Federal Reserve Chair Jerome Powell warned of a return to bigger interest-rate hikes to cool inflation and ...

Opinion: Powell will have to push rates even higher for the Fed to get inflation to 2%

Inflation is proving tougher to curb than Federal Reserve Chairman Powell anticipated, and despite indicators that a recession could be coming, consumers and businesses apparently haven’t gotten the m...

The Paul Volcker Narrative Imagines an Economy That Doesn’t Exist, and That Never Has

The Chinese government forbids foreign ownership of a broad range of Chinese businesses, including those that run websites. Despite this, despite endless rules meant to repel foreign capital migrating...

Bank Of Japan Should Study Paul Volcker Era

As Federal Reserve chairman from 1979 to 1987, Paul Volcker took the maxim that a central banker’s role is “take away the punch bowl just as the party gets going” to the extreme. BRENDAN SMIALOWSKI/AF...

Will Federal Reserve Rate Hikes Pull Down Inflation? Probably Not, New Research Shows

US Federal Reserve Chairman Jerome Powell speaks during a press conference after a Federal Open … [+] Market Committee meeting in Washington, DC on July 31, 2019. – The US Federal Reserve ...

What’s The Problem? UK Economic Policy Mirrors Successful 1980s U.S. Effort

LONDON, ENGLAND – JULY 14: Secretary of State for Business, Energy and Industrial Strategy Kwasi … [+] Kwarteng (R) intridcues Conservative leadership candidate Liz Truss (L) as she launch...

Paul Volcker didn’t wait for inflation to get back to 2% before pivoting

Paul Volcker is back in the limelight after Federal Reserve Chair Jerome Powell approvingly cited his interest rate-hiking flurry to tame inflation back in the 1970s. But what’s less talked about is t...

3 Stocks That Could Benefit From Powell Channeling Volcker

WASHINGTON – MAY 14: Former Federal Reserve Chairman Paul Volcker testifies before the Joint … [+] Economic Committee May 14, 2008 on Capitol Hill in Washington, DC. The full committee met...

A Martian Assesses The Great 1970s Inflation

At the Federal Reserve conference in Jackson Hole this week, all attention was on inflation. Chair Jerome Powell seemed to have moved the markets when his tight-money comments coincided with a 1000-po...

The spirit of Paul Volcker lives on at Jackson Hole: Morning Brief

Federal Reserve Chair Jerome Powell sent a clear message to financial markets this week: Interest rates will remain high until inflation goes low and stays low. Powell’s message was delivered in...

Powell Is Not About to Go All Volcker on Rates at Jackson Hole, Goldman’s Hatzius Says

(Bloomberg) — The message from markets this past week has been that Federal Reserve Chairman Jerome Powell will channel his inner Paul Volcker and deliver the fire and brimstone of large, inflat...

Fed Readies Largest Rate Hikes Since Volcker: Decision-Day Guide

(Bloomberg) — Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast. Most Read from Bloomberg Federal Reserve Chair Jerome Powell is set to deliver the ...

Powell’s Plan To Exorcise Inflation Echoes Early 1980s Volcker Crusade

With few exceptions, stocks last week were savaged in the wake of comments made by Federal Reserve Chairman Jerome Powell that all but assured a half-point rate hike at the Federal Open Market Committ...

Inflation, Omen Of Creative Destruction

Inflation is now running at the unconscionable rate of 7 percent per year. In the bad old days of the 1970s and the early 1980s, consumer price increases were regularly in the double digits. Inflation...