The Federal Reserve has cut interest rates to a three-year low … by a quarter point to between 3.5 to 3.75 per cent. Two of the 12 FOMC members objected to the cut and one wanted a larger cut.—Financial Times, December 10, 2025 The Questions What is the Fed’s dual mandate? Which inflation measurement does … Continue reading Federal Reserve cuts rates to three-year low after fractious meeting
Author: Michael Parkin
Amazon Advertising Surges as E-Commerce Growth Slows
Amazon is rapidly transforming from an e-commerce titan into a global advertising powerhouse. Now the third-largest digital ad publisher, Amazon trails only Google and Meta (owner of Facebook), overtaking traditional media groups and rival tech platforms in terms of ad revenue scale. In the first quarter of 2023, Amazon’s revenue rose 9% year-over-year to $127.4 billion, … Continue reading Amazon Advertising Surges as E-Commerce Growth Slows
Keir Starmer Considers Crackdown on Dynamic Pricing as Ticket Costs Soar
After ticket prices for Oasis’s reunion tour more than doubled while fans queued, Sir Keir Starmer, the UK prime minister, said “this isn’t just an Oasis problem, this is a problem for tickets for all sorts of events. … we’ll make sure that tickets are available at a price that people can actually afford.”—Source, The … Continue reading Keir Starmer Considers Crackdown on Dynamic Pricing as Ticket Costs Soar
Facts and Beliefs
The question When it comes to the economy, do you believe Americans are better off than they were four years ago? David Muir ABC News question to Kamala Harris. Kamala Harris didn’t say what she believed, but we can answer a related question: Are Americans better off in 2024 than they were in 2021? The … Continue reading Facts and Beliefs
Taxes and Economic Growth
Are taxes too high? This question features in political debates everywhere, and in 2024 was a source of debate in the French, U.K., and U.S. elections. The U.K. Chancellor of the Exchequer (Finance Minister) wrote: ‘The most dynamic economies tend to be places with lower taxes. The lesson is clear: supporting businesses with competitive taxes … Continue reading Taxes and Economic Growth
New York City’s $15 Congestion Tax Wins Initial Approval
New York City’s Metropolitan Transportation Authority (MTA) will make motorists driving into Manhattan’s central business district pay a congestion tax. Passenger cars will pay $15 and trucks will pay $24 to $36 and the tax will bring in $1 billion annually. —Bloomberg, December 7, 2023. Some Data The MTA’s “Congestion Pricing will unlock a better … Continue reading New York City’s $15 Congestion Tax Wins Initial Approval
Job Growth Twice As Strong As Expected In January
The U.S. added 353,000 jobs in January, almost double the 185,000 economists expected, as the economy walks the tightrope of maintaining a strong labor market while simultaneously bringing down inflation to a palatable level. The unemployment rate stayed flat at 3.7 percent.—Forbes, February 2, 2024 Why did the unemployment rate stay flat when employment increased? … Continue reading Job Growth Twice As Strong As Expected In January
The Fed’s Interest Rate Toolkit
Federal Reserve (the Fed) Chair Jerome Powell describes the Fed’s interest rate tools as follows: “The Federal Reserve sets two overnight interest rates: the interest rate paid on banks' reserve balances and the rate on our reverse repurchase agreements. We use these two administered rates to keep a market-determined rate, the federal funds rate, within … Continue reading The Fed’s Interest Rate Toolkit
Where are House Prices Heading?
The average household in the United States and Canada spends around one-third of its income on housing. Two-thirds of households own their home, and three-quarters of homeowners are paying off a mortgage. So, the price of a house is a big deal. What is the average price of a house today? The average price of … Continue reading Where are House Prices Heading?
Silicon Valley Bank in Perspective
Our recent posts investigated the failure of Silicon Valley Bank (SVB) and the response of regulators. Here, we provide some data on U.S. banks and bank failures to place SVB in perspective. How big was SVB? SVB’s total assets at the end of 2022 were $209 billion, which is 0.96 percent of the total assets … Continue reading Silicon Valley Bank in Perspective