Free Republic

The committee that sets interest rates for the Federal Reserve released the minutes from the November meeting where it first signaled that it could be dialing back all the economic help it’s been providing during the pandemic. Following the two-day session that concluded Nov. 3, the Federal Open Market Committee indicated it will begin cutting back on the monthly bond-buying program that had seen it purchasing at least $120 billion in Treasurys and mortgage-backed securities. The goal of the program was to keep money flowing in those markets while maintaining broader interest rates at low levels to boost economic activity....

Global debt levels are dangerously high and central banks cannot keep the game going indefinitely, warns the high priest of orthodoxy Debt ratios have reached extreme levels across all major regions of the global economy, leaving the financial system acutely vulnerable to monetary tightening by the US Federal Reserve, the world's top financial watchdog has warned. The Bank for International Settlements said the wild market ructions of recent weeks and capital outflows from China are warning signs that the massive build-up in credit is coming back to haunt, compounded by worries that policymakers may be struggling to control events. "We...

U.S. equity markets were lower Monday morning as traders anxiously awaited this week’s Federal Open Market Committee meeting. As of 9:50 a.m. ET, the Dow Jones Industrial Average fell 81 points, or 0.50% to 16350. The S&P 500 shed 8 points, or 0.45% to 1952, while the Nasdaq Composite declined 16 points, or 0.33% to 4806. Today’s Markets Wall Street waited with bated breath for the outcome of the Federal Reserve’s two-day, policy-setting meeting this week, which begins Wednesday and ends with a statement on monetary policy the day after. In recent weeks, forecasts for a September rate hike have...