Adam Horak's Blog – June 2009 Archive (3)

(FED) FOMC Statement June 24, 2009

Information received since the Federal Open Market Committee met in April suggests that the pace of economic contraction is slowing. Conditions in financial markets have generally improved in recent months. Household spending has shown further signs of stabilizing but remains constrained by ongoing job losses, lower housing wealth, and tight credit. Businesses are cutting back on fixed investment and staffing but appear to be making progress in bringing… Continue

U.S. International Transactions: First Quarter 2009

Current Account





The U.S. current-account deficit—the combined balances on trade in goods

and services, income, and net unilateral current transfers—decreased to $101.5

billion (preliminary) in the first quarter of 2009, the smallest deficit since

the fourth quarter of 2001, from $154.9 billion (revised) in the fourth quarter

of 2008. The decrease was more than accounted for by a decrease in the… Continue

To raise or not to raise; that is the question.



With the US and global economies on the brink of a potential recovery when and how much should the FED raise interest rates? Let’s start off by looking at a formula often used by traders to predict the target rate for a central banks short term interest rates. Proposed by John Taylor in 1993 the (Taylor Rule) is widely accepted by economists today as a gauge for appropriate interest rate levels in conjunction with current economic… Continue