Markets

Why the Federal Reserve uses contractionary monetary policy to curb the inflation that accompanies an overheating economy

Contractionary monetary policy is a strategy used by a nation’s central bank during booming growth periods to slow down the economy and control rising inflation. The Federal Reserve uses three main contractionary monetary tools: increasing interest rates, increasing banks’ reserve requirement, and selling government securities. The primary purpose of contractionary […]
Why the Federal Reserve uses contractionary monetary policy to curb the inflation that accompanies an overheating economy
Markets

A Wall Street chief strategist details 8 ways today’s economy mirrors the 1980s recession recovery — and how it can lift stocks even higher

Today’s inflation concerns mirror those seen after the 1980 economic slump. And James Paulsen, chief strategist at The Leuthold Group, sees the trend as a boon for markets. The inflation surge seen four decades ago kicked off “a fabulous ‘disinflationary,’ two-decade performance in both the economy and the stock market,” […]
A Wall Street chief strategist details 8 ways today’s economy mirrors the 1980s recession recovery — and how it can lift stocks even higher
Markets

Investors should be prepared for inflation, but gold may not provide the right protection, a JPMorgan chief strategist says

David Kelly of JPMorgan Asset Management told Bloomberg that investors should “take inflation seriously.” But the chief global strategist doesn’t believe buying gold is the best strategy to hedge against this looming inflation. Instead, investors should consider real estate, commodities, real assets, and value stocks. Visit Business Insider’s homepage for […]
Investors should be prepared for inflation, but gold may not provide the right protection, a JPMorgan chief strategist says