"Every breath you take,
Every change of rate,
Jobs you don't create
While we still stagflate,
I'll be watching you"
– Dean Glenn Hubbard, 2006
In 2006 the below video parody was posted to youtube.  Today, the US still awaits job creation while its economy continues to stagflate.  Ben Bernanke has replaced Alan Greenspan at the Federal Reserve and the yield curve has indeed 'flipped' – as was the aim of the Fed's latest policy to switch from holding shorter-term US Treasuries into longer maturities.

5 years on, Fed policy has extended from setting short-term interest rates to also influencing long-term rates via quantitative easing. Perhaps Dean Hubbard’s next video should be a re-make of the Black Eyed Peas:

“Where is the Growth?
 Where is the Growth?
 Where is the Growth,
 The growth, the growth?”

[Please note that all opinions expressed in this blog are the author’s own and do not constitute investment advice.  Click here for full disclaimer]


Author: Robert Gardner

Robert is Co-Founder and Non Executive Director at Redington Ltd. He started his career at Deutsche Bank before joining Merrill Lynch in 2003, working as Director in their Insurance and Pensions Solutions Group. In 2008, Robert also co-founded Mallowstreet, the online pensions community which continues to grow with presence and support from the industry. Robert is passionate about the impact of social media on business believing that education, collaboration and contributions are the best way to tackle pension challenges. In January 2019, Robert joined St. James's Place Wealth Management as Director of Investments.