Consumer Confidence Rises But Doubts Remain

The good news is that the Conference Board’s confidence gauge rose to 101.5, well above the July reading of 91 and beating the consensus analyst estimates of 93.4. There are two factors that make me cautiously enthusiastic about the latest reading, however. On the one hand, the survey for this month’s reading was completed on August 13th, well before the recent turmoil in the equity markets. I venture to guess after fielding many calls from clients over the last few days and answering the question:

When do Unconventional Economic Policies Become Conventional?

You can’t go one Unconventional2day without hearing or reading conjecture about how the Fed will ‘wind down’ its unconventional policies. There could be an energetic debate on whether unconventional measures were or were not necessary to support the US economy during and after the recent financial crisis that began sometime around 2008.

Six years later and these unconventional policies are still in effect. While six years relative to the entire history of the Fed is but a drop in the bucket, I wondered, to myself, and now on this blog, when exactly does unconventional become conventional?