Economic Commentary
Disinflation is alive and well, but the Fed’s job is not over
ECONOMY & POLICY October 13, 2023 Chief Economist Eugenio J. Alemán discusses current economic conditions. We hear and read daily analysis on how inflation is coming down and that the Federal Reserve (Fed) has beaten inflation. This is probably very close to the truth from an economics point of view. However, from an individual […]
Is the Fed taking note of market volatility?
ECONOMY & POLICY October 06, 2023 Chief Economist Eugenio J. Alemán discusses current economic conditions. The Federal Reserve (Fed) only controls one rate of interest, and it is a very short-term rate called the federal funds rate, the rate that banks charge each other for overnight, intra-bank loans. The rest of the rates, i.e., […]
Here we go again: Showdowns and shutdowns
ECONOMY & POLICY September 29, 2023 Chief Economist Eugenio J. Alemán discusses current economic conditions. While government shutdowns impact the economy directly and indirectly, the magnitude of the impact is determined by the length and scope of the shutdown. Some operations can continue in a “partial shutdown” scenario, and thus impact the economy differently. […]
The Match Continues: The Fed vs. The Market
ECONOMY & POLICY September 22, 2023 Chief Economist Eugenio J. Alemán discusses current economic conditions. Wednesday’s Federal Reserve (Fed) decision to keep the federal funds rate unchanged wasn’t a surprise at all. Markets, as we argued last week, had predicted that the Fed was going to stay put and that is what it did. […]