Mortgage, Retirement and Investing Expert
Mark Henricks has reported on personal finance, investing, retirement, entrepreneurship and other topics for more than 30 years. His freelance byline has appeared on CNBC.com and in The Wall Street Journal, The New York Times, The Washington Post, Kiplinger’s Personal Finance and other leading publications. Mark has written books including, “Not Just A Living: The Complete Guide to Creating a Business That Gives You A Life.” His favorite reporting is the kind that helps ordinary people increase their personal wealth and life satisfaction. A graduate of the University of Texas journalism program, he lives in Austin, Texas. In his spare time he enjoys reading, volunteering, performing in an acoustic music duo, whitewater kayaking, wilderness backpacking and competing in triathlons.
Posts by Mark Henricks:
The U.S. central bank, known as the Federal Reserve, has a dual mandate of managing inflation and promoting full employment. When Fed officials are said to be “dovish,” it means they are more interested in promoting job creation than in controlling wage and price inflation. They do this directly with interest rate hikes and indirectly by boosting the bank’s balance sheet through bond purchases. On the other hand, Fed officials are said to be “hawkish” when they are more interested in controlling inflation than boosting employment. They do this cutting interest rates and selling bonds. Here’s a description of dovish policies and how investors should respond. Read more
U.S. interest rates are controlled by the nation’s central bank, the Federal Reserve. The bank has Congressionally mandated tasks to pursue a monetary policy that encourages employment, keeps prices relatively stable and moderates long-term interest rates. Keeping interest rates low is sometimes called a dovish policy; raising them is sometimes called a hawkish policy. When government monetary policy is driven by a hawkish view, policymakers are focused on keeping inflation in check. Besides doing this by raising interest rates, they also do this by reducing the money supply. The effects on investors and others can be sweeping, ranging from higher unemployment and less availability of credit to more stable and predictable prices. Read more
Inflation occurs when prices for goods and services increase, while deflation happens when prices decrease. Sustained periods of sizable inflation or deflation can have significant effects on the economy and on the behavior of investors, businesses and consumers. Government policymakers and ordinary people keep a close eye on measures of prices in order to help them make decisions that will keep the overall economy and individual personal finances healthy. Read more