What on Earth Is Happening in the Financial Markets?

Current Federal Reserve Chair Jerome Powell

Introduction

Figure 1: One-Year Dow Jones Chart

Part 1: Definitions and Background Information

Stock

Bond

Inflation

Business Cycle

Figure 2: Business Cycles

Federal Reserve

Fiat Money

Figure 3: Historical Gold Prices

Part 2: The Great Recession and the Fed’s Response

Causes of the Great Recession

Fed’s Response

Figure 4: Types of Yield Curves

2010s Recovery

Figure 5: EURO STOXX 50 Chart
Figure 6: Historical Fed Funds Rate

Part 3: Coronavirus Pandemic and Possible Scenarios

March 2020 Crash and the Fed’s Response

Figure 7: Historical Unemployment Rate
Figure 8: Fed’s Balance Sheet Since December 2002

Stock Market vs. the Economy

Figure 9: Historical Shiller P/E Ratios

Inequality, Fragility, and Possible Scenarios

Conclusion

I write about economics.

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