One of the most reliable recession indicators is the yield curve, which measures the spread between short and long duration bond yields. A steeper curve, or when long term yields exceed short term yields, is usually associated with higher inflation and economic expansion. Contracting yield spreads, in contrast, usually suggests slower growth and tighter monetary … Continue reading →

One question the Federal Reserve can’t seem to answer is why, over the past few years, inflation has remained so low. The incredible monetary policy of quantitative easing, the Fed’s asset purchasing program, has put trillions of dollars into the economy, yet inflation has remained well below their 2% target. That may be about to … Continue reading →

The Trump Administration has made reforming financial regulation a goal for 2018. Surprisingly, its Democrats that are helping push the effort towards the finish line. Legislation is currently being discussed to roll back Dodd-Frank, a signature bill passed under the Obama Administration that introduced drastic regulations to the banking industry. This bipartisan effort is seeking … Continue reading →