loose money policy

The Bulls Are Optimistic Despite Global Turmoil

Despite turmoil around the world, U.S. markets have been rising again, but is this a temporary bump, or the return of a bull market? The sharp-eyed analysts of Morgan Stanley and Goldman Sachs say its the latter, and their money is on strong growth ahead.

Yes, Stocks Are Extremely Volatile. But Don't Panic!

Investors are running scared after the earthquake and tsunami that devastated parts of Japan and left it with an ongoing nuclear crisis. Pain for Japan could easily infect the global economy. But when there's gloom in the air, there's also opportunity to buy on the dip and gain from the rebound.

Labor's Fall -- Not Oil's Rise -- Is Key to Inflation

Despite all the worry over the impact of rising oil prices, recall that the U.S. is now a largely services-based economy, and observe that the rising wages that have led to real overall cost rises in decades past are nowhere to be found today. Exhibit A is in Wisconsin.

Currency Wars Are Heating Up Across Latin America

Emerging market countries, especially those in Latin America, are gearing up for a potentially damaging round of currency interventions to help keep their economies competitive. "This is a currency war that is turning into a trade war," says Brazilian Finance Minister Guido Mantega.

Citing 'Insufficient' Growth, Fed Keeps Policy Steady

The Federal Reserve Tuesday kept its current accommodative monetary policy going steadily and continued its program of quantitative easing, saying that the economic recovery is continuing, but the growth rate "has been insufficient to bring down unemployment."

America's Low Interest Rates Have a High Hidden Price

Interest rates are the price of money, and though that price is near zero right now, the cost of low interest rates to our nation may be too high. Low rates are squeezing savers, seniors, banks and pension funds, and the benefits we're supposed to see from them don't appear to have arrived.

Should the Fed Worry About Unemployment?

When the economic gurus at the Fed move the levers of U.S. monetary policy, they do so with two often-conflicting goals in mind: promoting maximum employment and keeping prices stable. Many critics are now arguing that that Fed should ignore unemployment and focus solely on prices.

Why the Fed's Stimulus Only Boosts Emerging Markets

When QE2 is complete, the Fed's bond purchases will have injected $1.7 trillion in liquidity into the markets since 2008 in an effort to boost corporate investment in new production and new jobs in the U.S. Instead, companies are taking cash raised here and investing it in emerging markets.

Fed Eases Lending Standards, but Small Businesses Don't Bite

The more lenient lending policies enacted by the Federal Reserve last month have so far failed to increase demand from small businesses, indicating that the federal government's attempts to spur the U.S. economy through more aggressive monetary policy may need more time to take effect.

As the Dollar Weakens, Commodities Shine

Market watchers lately have loudly proclaimed the end of the dollar, which has left investors looking to stay ahead with a choice of betting on stocks, which have 17% fallen in the last decade, or staying "safe" in very low-yield money market funds. But there is an alternative: Commodities.