Created in 1913 with the enactment of the Federal Reserve Act, the Federal Reserve (the Fed) is the central banking system of the U.S. The Fed functions as the bank of the U.S. government, overseeing the nation’s financial institutions. As the central bank, the Fed safeguards and manages the U.S. economy and its money supply with its economic and monetary policies, which makes it a very powerful global player. Ben Bernanke is the current chairman of the Federal Reserve.
The value of the U.S. dollar is anchored in trust. As a fiat currency, the U.S. dollar isn’t linked to any physical reserves, like gold or silver; it’s just paper. For the U.S. dollar to be worth anything, it has to be backed by an economy people have faith in. Otherwise, the U.S. dollar would collapse.Regardless of its intentions, the. Read More
A lot of economic news has been coming in softer of late and it’s affecting the stock market. That is to say that the data are often just slightly below existing Wall Street consensus.Stocks have been churning all year and the market’s lack of direction is a result of all the usual suspects: the Federal Reserve, oil prices, global economic. Read More
I am looking at two factors to see where gold prices are headed next: the Federal Reserve’s actions and the U.S. dollar. They are unanimously pointing toward the upside.Let me explain…Price of Gold and Federal Reserve’s Interest Rates DecisionOn March 18, the Federal Reserve provided guidance on what it will do regarding interest. Read More
With the Federal Reserve green-lighting the stock market’s recent advance, it’s a reminder that equities continue to be guided by central bankers and not economic reality.Fed’s Accommodative Actions Guarantee Return for Stock Investors?But this is how it always is in a secondary market (stocks). Share prices reflect the. Read More
With the broader stock market gyrating based on expectations of the Federal Reserve’s possible interest rate increase, the NASDAQ Biotechnology index and Russell 2000 are still holding up near their highs. A closer look at the current market dynamics suggests rising interest rates won’t be the cause of a stock market collapse.. Read More