Money

Why now is a good time to rethink monetary policy

Published

2 years ago

February 5, 2024

Since the beginning of the pandemic, concerns have been raised about the Federal Reserve’s approach to handling economic challenges.

While the Fed’s perceived political involvement has garnered attention, the more pressing issue at hand is the way it tackles inflation and interest rates using what some describe as a sledgehammer when a scalpel might be more appropriate.

Instead of implementing infrequent and substantial moves of 25, 50, or even 75 basis points, which can disrupt financial markets and investment strategies, the argument put forth is that the Fed should opt for smaller, more frequent adjustments of five or ten basis points.

The goal is to create a smoother economic landscape, as opposed to the sharp and unpredictable fluctuations that are currently experienced.

FILE PHOTO: A Wall St. sign is seen outside the New York Stock Exchange (NYSE) in the financial district in New York City, U.S.

Rate curve

The proposed ideal scenario envisions a gradual and controlled interest rate curve, consistently hovering between 3% and 4%, within a relatively narrow range.

This approach would entail a longer-term cycle, spanning 10 or 20 years, rather than the shorter two- or three-year cycles witnessed today.

By implementing minor basis-point adjustments over a few weeks, financial markets, lending practices, and the stock market would adapt in a more measured manner.

These adjustments would be small, fostering a more rational and predictable economic environment conducive to better planning.

The debate over the Fed’s approach to monetary policy is ongoing, and while the central bank continues to grapple with economic challenges, alternative strategies like the one proposed here could reshape the way it addresses these issues in the future.

Money

Wall Street gains momentum amid tech and earnings surge

U.S. stocks rose Monday, driven by Oracle gains, as investors overlooked recent silver and bitcoin losses ahead of earnings week.

Published

3 hours ago

February 3, 2026

Harvey Vargas

U.S. stocks rose Monday, driven by Oracle gains, as investors overlooked recent silver and bitcoin losses ahead of earnings week.

U.S. equities climbed on Monday as Wall Street kicked off a new month of trading. Investors looked past recent losses in silver and bitcoin, with optimism returning to major indices. The S&P 500 rose 0.7%, led by gains in Oracle shares following the company’s announcement to raise up to £50 billion for cloud capacity.

The Dow Jones Industrial Average surged 501 points, while the Nasdaq Composite increased 0.9%. Analysts note that the broader market is showing resilience despite mixed signals from tech and commodities.

More than 100 S&P 500 companies are expected to report earnings this week. Strong growth is predicted, even as some high-profile sell-offs continue to make headlines.

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Money

U.S. dollar weakens while Australian dollar rises amid global market shifts

Published

4 days ago

January 30, 2026

Harvey Vargas

US dollar weakens as Trump comments; Australian dollar gains from commodity prices and RBA rate hike expectations

The US dollar is coming under pressure as the economy remains strong and President Trump comments on its decline. We explore how this is impacting major currencies around the world and what it means for investors.

Meanwhile, the Australian dollar is benefiting from rising commodity prices and growing expectations of an RBA rate hike. Global investors are increasingly drawn to Australia’s bond market as economic conditions shift.

Currency trading strategies are adapting to this changing landscape, with potential implications for interest rates and international markets. Steve Gopalan from SkandaFX breaks down the trends.

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#USDDollar #AustralianDollar #ForexTrading #RBA #InterestRates #GlobalEconomy #CurrencyMarket #Ticker

Money

Wall Street slides as AI spending raises investor concerns

Wall Street dips as AI spending scrutiny rises; Microsoft struggles while Meta thrives. Tune in for insights!

Published

4 days ago

January 30, 2026

Harvey Vargas

Wall Street dips as AI spending scrutiny rises; Microsoft struggles while Meta thrives.

Wall Street closed lower on Thursday, with the Nasdaq leading losses as investors questioned whether Big Tech’s massive AI spending will pay off. Microsoft shares tumbled after revealing record AI infrastructure costs, while Meta rallied on strong earnings and a bullish outlook.

Kyle Rodda from Capital.com joins us to explain what spooked markets, which tech names are holding up, and whether AI budgets are getting too big.

We also discuss rate expectations, macro risks, and what to watch in the upcoming earnings season.

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