The biggest scar from the Great Recession is going to be a smaller labor force and less investment in the US, but it will be an expansion from the previous so-called new normal level, said Alan Krueger, an economics professor at the Princeton University and former Chairman of council of economic advisers. Asked to comment on Janet Yellen’s speech at …
One Man’s Opinion: Will The Federal Reserve Raise Rates Even If Wages Don’t Pick Up?
The US Fed must re-calibrate their estimates after the disappointing first quarter gross domestic product (GDP) reading as the first six months of 2014 is likely to be flat despite a strong rebound in the second quarter, said Ellen Zentner, Senior US economist at Morgan Stanley. Although the data going into the second half is looking well enough for the …
One Man’s Opinion: Will The Federal Reserve Keep Rates Low To Boost Consumption?
Following the Fed’s two-day monetary policy meeting this week, Chairwoman Janet Yellen said the central bank is going to stay accommodative for a long time after it ended its monthly bond-buying program this year, reassuring markets a rate hike is not likely any time soon, said Vincent Reinhart, chief US economist at Morgan Stanley. Asked if Morgan Stanley agrees with …
One Man’s Opinion: Is The Fed Likely To Raise Rates In The Second Half Of 2015?
When the US Federal Reserve says there’s a slack in the economy, it means lack of activity in the labor market and an unemployment rate higher than where it should be to generate sufficient inflation, said Neil Dutta, head of US Macroeconomics at Renaissance Macro Research. There have been both optimistic and pessimistic opinions about the state of the economy. …
I Would Like To Buy Three ‘As’ Please. Sorry, Better Luck Next Time
[Chart courtesy of MarketWatch.com] 1. Moving The Markets The markets stayed in the green zone after a minimal amount of economic news to trade on and no major M&A announcements. All major indexes showed small gains for the day. There was a decent amount of news in the tech world today. Internet domain registration company GoDaddy finally pulled the trigger …
One Man’s Opinion: Will Growth In The Second Half Be Stronger?
The latest jobs report is positive as it shows the economy continues to heal though there is a lot of work that needs to be done, said Alan Krueger, a professor at the Princeton University and former chairman of the White House Council of Economic Advisers. There are longstanding problems that even predate the recession that need to be addressed. …