The arguments for the Fed to back off its interest-rate increases are unpersuasive

 Federal Reserve is “breaking” financial markets. Stresses have emerged everywhere. Stock markets are down, the dollar is strong, and liquidity is drying up in credit markets. Most of this, however, is consistent with what the central bank is trying to achieve. 

Fortunately, the Fed is acting more wisely than its legions of critics.

Jason Furman WSJ 5 October 2022 

https://www.wsj.com/articles/stay-the-course-chairman-powell-federal-reserve-funds-interest-rate-tight-labor-credit-market-expectations-recession-11664985518

Mr. Furman, a professor of the practice of economic policy at Harvard University, was chairman of the White House Council of Economic Advisers, 2013-17.


What Recession? The Global Superyacht Industry Is Booming

Americans are driving the demand, more than making up for the absence of rich Russians. As of Aug. 31, owners from the US accounted for the largest share of both the existing fleet and of new-builds. 

US owners make up 23% of the global fleet of super-boats of more than 40 meters, followed by the Russians at about 9%. Other major buyers come from Greece, the UK, Turkey and Italy.  

Bloomberg 7 October 2022

https://www.bloomberg.com/news/articles/2022-10-07/what-recession-the-global-superyacht-industry-is-booming


Most analysts still don’t expect a repeat of the 2007-09 global financial crisis...

... citing reforms that have made the largest banks more resilient, new central bank tools and fewer indebted U.S. households.

“So far there haven’t been any really bad surprises,” said William Dudley, former president of the Federal Reserve Bank of New York.

WSJ 5 October2022

https://www.wsj.com/articles/when-interest-rates-rise-fast-markets-tend-to-break-how-to-spot-the-cracks-11664974804


 


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