VGLT News and Press, Vanguard Long-Term Government Bond ETF From 08/30/22

Summary The US Fed continues to bring the big guns, raising rates another 75 bp (0.75%) on July 27, 2022. The DOT COM Bubble was unique in the sense that excess capital flowed into technology/internet companies’ hand-over-fist. I believe the current pre & post COVID...

Summary Interest rates will move higher and remain in restrictive territory for longer than the market currently expects. The length of time required to drive inflation to low and stable levels remains uncertain. The Federal Open Market Committee expects the pace of rate incre...

Summary On 26 August 2022, Fed chair Jerome Powell spoke at the annual Jackson Hole Economic Symposium. His forceful language and deliberate references to the lessons of history laid to rest any hope that the Fed will shift away from its tightening strategy. Equity markets respond...

Summary The latest inflation data suggests that although the rate of rising has slowed, inflation is not going away just yet as the post-pandemic and war in Ukraine era evolves. Therefore, even though there are still reasons to own certain stocks in this market, the pickings may b...

Summary On January 3, 2001, the Fed chair cut the Federal Funds Rate from 6.5% to 6.0% in response to a declining stock market and weak economic activity. Today, the stock market has been in rally mode since June 16, largely on the prospect of the Fed implementing a much-awaited p...

Summary M2 has essentially flat-lined since last January, which was well before the Fed began to take tightening action. This means that the behavior of M2 is obviating the need for the Fed to pursue a typical tightening, which almost always ends with a recession. The issue of...

Summary Monetary inflation forces are being subdued with rate hikes. Other forces that contribute to inflation are very mixed currently. Overall, the rate of inflation will likely remain well above workers' weekly paychecks. It's a rather funny picture, but it's the stat...

Summary Equities rebounded in recent weeks as investors considered the prospects of a possible pivot by major central banks, especially after China’s central bank unexpectedly cut interest rates. Similar to Europe, core inflation and services inflation are expected to rise ...

Summary Core CPI, which excludes volatile food and energy prices, grew just 0.3 percent in the month of July, down from 0.6 and 0.7 percent in the prior two months. The continuously-compounding annual inflation rate since January 2020, which had stood at 3.0 percent in August and ...

Summary The Fed will take strong efforts to lower inflation, but not primarily to help consumers today. Their strong action comes from a belief that failure to bring inflation down now will result in much more persistent inflation, with more business cycles in the years to come. ...