Before the Economic Club of Memphis, President James Bullard discussed the current “regime” of low real GDP growth and low real interest rates on short-term government debt, the possible impact of the new fiscal policy on this regime, and the Fed’s balance sheet.
Presentation (pdf) | Press Release | Photos of Memphis-Area Tour
Now may be a good time for the Federal Open Market Committee (FOMC) to begin allowing the balance sheet to normalize by ending reinvestment, St. Louis Fed President James Bullard said at George Washington University in Washington, D.C.
Presentation (pdf) | Press Release
In the fourth quarter of 2016, auto debt grew more slowly but subprime delinquencies on car loans rose.
Some people argue that immigrants make life harder for workers who are already U.S. citizens. But the data don’t show much of a correlation between immigration and the unemployment rate or between immigration and wages.
Much attention has been paid lately to corporate inversions, in which U.S.-based multinational corporations move their parent companies to countries where taxes are lower. Past attempts to curtail such tax avoidance have had some success, but companies always find a way around the new rules. Would lowering tax rates in the U.S. help?
After declining for almost eight years, yields on U.S. Treasuries turned upward in the second half of 2016. Several domestic and international factors have led to a decrease in demand for these bonds.
Keep up with what’s new and noteworthy at the St. Louis Fed. Sign up now to have this free monthly e-newsletter emailed to you.