The Difference Between Currency and Money

Currency: medium of exchange, a unit of account, portable, durable, divisible, fungible Money: medium of exchange, a unit of account, portable, durable, divisible, fungible, AND store of value Most people do not understand the difference between currency and money. The U.S. dollar for instance is not money, it’s currency. The reason is quite simple, it …

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The Powell Put is now obvious

Fed decided to keep the interest rate unchanged (as expected) and told the market exactly what It wanted to hear. According to Powell, the Fed are “data dependent” (as always) and are focusing on maximizing employment and stabilizing prices. No surprise as that’s the Fed’s objective. However, there are clear indications that Fed is now …

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Fed meeting – I’m skeptical

The Fed will probably keep the interest rate where it is as well as softening its language to please investors. Chairman Powell is trying his best to convince the market that there are no problems and at the same time softening the policies. Why pause the tightening if there are no problems? I'm skeptical.

What’s next for Fed?

I read the following article from WSJ the other day that I find rather interesting. Fed Officials Weigh Earlier-Than-Expected End to Bond Portfolio Runoff https://www.wsj.com/articles/fed-officials-weigh-earlier-than-expected-end-to-bond-portfolio-runoff-11548412201?ns=prod/accounts-wsj Comments: It looks like the Fed is paying more and more attention to the stock market’s performance. The classic “Fed put” seem to be reintroduced by Chairman Powell. As known, …

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