What’s going on? The US added just 235,000 new jobs in August – far fewer than even economists’ lowest forecast of 400,000 What does this mean? There might be two mitigating factors: The survey was taken in mid-August, when Delta variant fears were probably at their highest. Managers might’ve paused hiring to manage a demand…
Tag: fed
Ep 162: The Fed’s announcement of slowing the bond-buying program and its effects on the economy
What’s going on? The Fed indicated that it’ll start tapering (slowing) its bond-buying program before the end of 2021 – just like investors expected. What does this mean? In 2020, the Fed cut interest rates to near-0% and started buying up $120b worth of bonds/ month. That flood of cheap money actually helped the economy stay alive…
Ep 145: Eurozone bond yields are promised not to rise
What’s going on? The European Central Bank promised to keep eurozone bond yields from rising. What does that mean? Like the US, the eurozone’s pumped lots of money into the economy to keep things stable throughout the pandemic. Now that a recovery’s near, investors are worried that those money would lead to inflation, forcing the…
Ep 144: FED Chairman reaffirmed the easy-money policies
What’s going on? Jerome Powell believes that the US economy is still quite far from its targets of 2%-inflation and full employment. This is the core basis for the FED to continue to maintain the current easy-money policies. Easy money occurs when FED wants to stimulate the economy and lower the unemployment rate. In general,…
Ep 104: Trial And Error
What’s Going On Here? After the Fed’s emergency interest rate cut on Tuesday, some investors were left wondering if the central bank had used the right tool for the job. What Does This Mean? When central banks lower the cost of borrowing money, they’re trying to encourage companies to take out loans and use that…
Ep 20: America Halves The Dream
What’s Going On Here? Friday’s jobs report showed that the US added just 75,000 jobs in May – less than half the number expected. What Does This Mean? For sectors The healthcare sector nursed 16,000 new jobs; Professional and business services (like lawyers and researchers) added 33,000; Jobs in retail, manufacturing, and working for Uncle Sam didn’t grow by much; Nor…
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