In The News
Fed rate cut or hold? Former Boston Fed chief weighs in
Visiting scholar Eric Rosengren joined "Market Domination" to preview the Fed's interest rate decision and discuss the central bank's policy outlook, inflation trends, and the path ahead for rates.
The $124 trillion Great Wealth Transfer is more than just cash: More U.S. businesses are now being inherited than bought, BofA finds
The current tax system could further incentivize wealthy Americans to hold onto assets longer before passing them down, prolonging the Great Wealth Transfer to an extent, but maximizing gains for the next generation of heirs. "That might be partly why people are holding on to these businesses for longer, and then handing them down to the heirs," professor Jonathan Parker said. "And the heirs can then either make them public or sell them or keep them."
Defined contribution plan investments: A regulatory explainer
Distinguished senior lecturer Robert C. Pozen wrote: "Because the amounts available for withdrawal at retirement depend to a substantial degree on the investment results of defined contribution (DC) plan accounts, Congress has been very interested in the investment menus selected by employers in their DC plans."
China as an absolute advantage economy
Professor Yasheng Huang wrote: "[Chinas] absolute advantage over foreign countries does not translate into prosperity to the people. Let’s keep this idea firmly in our heads when we hear executives praise China’s low labour costs, often mistaking it for high efficiency in the same breath. The other side of this praise is a condemnation of China’s low income. So many of the burning issues about the Chinese economy- its overcapacity, under-consumption by the household sector and, to some extent, low productivity- all hinge on this absolute advantage feature of the Chinese economy."
Investing in America: Why automatic retirement savings are the future
Senior lecturer Robert Pozen and co-author wrote: "President Trump recently issued an executive order calling for a federal website to encourage the opening of Individual Retirement Accounts by workers who have no retirement plan at work. But decades of efforts to promote saving in IRAs show that most ordinary households are unaware of the option or are held back by inertia. To extend retirement saving to all workers, Trump should now support federal legislation built on the concept of automatic IRAs, which are already being successfully implemented in 17 states."
The Nobel Laureate who thinks your retirement is measured all wrong
In this long-form interview, professor Robert C. Merton said: "The genuinely thrilling part is the moment when something you worked out in theory turns out to be something a person can actually do. Is it easy? Typically not. But nothing that's really good is easy. It's a path. That's been my philosophy of doing this for 60 years."
Traditional financial wisdom says a 60-40 portfolio is best. Is that still true?
Senior lecturer Robert Pozen wrote: "Investing in stocks is always a risk. But the historical data show the risk might not be exactly what advisors have ingrained in retail investors for decades. For those with a long-term investing mind-set and the stomach for riding out the market, 90-10 may be your best play."
Inside the push to weaken Washington's toughest financial watchdog
Senior lecturer Robert Pozen and co-author wrote: "What's new here is the deliberate stripping of powers that the SEC long held. Yes, Congress can and does occasionally do this, but not the agency's own leaders, especially without advance notice or an opportunity for comment. The current SEC commissioners are consciously weakening the agency's leverage in negotiations with large corporate defendants."
Why is Europe's economy falling short?
Professor Simon Johnson sat down with fellow Nobel laureate economist Philippe Aghion to examine what ails Europe and how to revive its dynamism.
America’s debt is at a breaking point — Trump’s tax bill might just push it over the edge
Distinguished senior lecturer Robert Pozen wrote: "Congress is poised to pass a reconciliation bill, politically dubbed the “One Big, Beautiful Bill,” that could do serious harm to America’s economic future. With much higher tariffs already clouding the economic outlook, this legislation would expand the U.S. federal deficit dramatically, with little justification in terms of macroeconomic policy or national investment. If enacted, the bill would not only deepen the country’s long-term debt burden but also heighten the risk of a self-reinforcing cycle of higher interest rates and slower economic growth."