Last week I discussed the tools that the Federal Reserve will be using to raise short-term interest rates as we enter the next phase of U.S. monetary policy. In brief, the Fed plans to use interest on reserves and reverse repurchase agreements as an offer to borrow back Federal Reserve deposits at an annual rate between 25 and 50 basis points (0.25% to 0.50% interest per year). That offer from the Fed puts an effective floor under the fed funds rate, which is the rate at which institutions would lend these funds overnight to other banks. When the Fed raises its offering rate, the fed funds rate should go up with it. Today I look at the implications of these new procedures for the Fed’s balance sheet.
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Mass Shooting Casualties, by Religion of Perpetrator: Muslim vs. Non-Muslim
Update, 6/12/2016, 4:15PM Pacific:
Here are two figures, with data updated to 6/12.
Figure 0a: 12 month moving average of mass shooting casualties; deaths inflicted by non-Muslims (dark red), wounded inflicted by non-Muslims (pink), deaths inflicted by Muslims (dark blue), wounded inflicted by Muslims (light blue). June observation for data through June 12. Source: Mother Jones, news reports for June 2016 and author’s calculations. Tabulations of religion of perpetrator by author.
Figure 0b: Cumulative sum of mass shooting casualties, beginning in 1982M08; deaths inflicted by non-Muslims (dark red), wounded inflicted by non-Muslims (pink), deaths inflicted by Muslims (dark blue), wounded inflicted by Muslims (light blue). June observation for data through June 12. Source: Mother Jones, news reports for June 2016 and author’s calculations. Tabulations of religion of perpetrator by author.
Some Public Policy Would be Useful
More so than some mere words.
Republican Outreach to Asian-American Voters Continues
After a catastrophic failure to attract Asian-American votes in the 2012 presidential election [1], the RNC has dedicated itself to capturing a larger share of this bloc; Jeb Bush has argued that Asian-Americans constitute a natural Republican constituency.[2]
Source: NPR (Sept. 16, 2015).
Great Moments in Presidential Debate Statements
“The Great Wall of China is 13,000 miles long!”
— Donald Trump, 6:25PM Central time, 10/28/2015
“Collapse and Revival : Understanding Global Recessions and Recoveries”
That’s the title of a new book by Ayhan Kose and Marco Terrones, just released.
To what problem is this legislation a solution to?
People with concealed weapon licenses would be allowed to carry guns inside the buildings and classrooms of Wisconsin’s public universities and colleges under a bill introduced Monday by two state legislators.
Common factors in commodity and asset markets
Increases in oil production in the United States and the Middle East were certainly key factors in the huge drop in oil prices over the last year. Nevertheless, one can’t help but be struck by the fact that the weekly changes in oil prices correlate with dramatic moves in other commodity and financial markets.
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“Global warming is a total, and very expensive, hoax!”
Source: Donald J. Trump, 6 December 2013.
Here’s some data: Global surface anomaly, year-to-date (June):
Source: NOAA
Short Term Economic Prospects in Kansas
Philadelphia Fed coincident indices for Kansas have been revised downward, along with forecasts.