Sep 192017
 

I am quoted in the Washington Post with respect to upcoming changes in monetary policy at the Federal Reserve.

“The stock market has essentially been expecting this for a while,” said David Kass, a professor of finance at the University of Maryland. “It will be a gradual unwind of the Fed balance sheet and has been incorporated into current prices.”

Kass said that so far, the Federal Reserve has straddled a careful line and fulfilled its twin goals of price stability and maximum employment. Now the central bank wants to begin easing back and let the economy run on its own.

“In terms of interest rates, the goal is to get back to a level before quantitative easing,” said Kass, referring to the Fed’s strategy of buying government bonds, which helped keep interest rates low. Kass said he expected interest rates to gradually rise to around 3 percent. Rates are between 1 and 1.25 percent currently.

 Posted by at 6:49 pm
Sep 172017
 

I am quoted in a Morning Consult article about a poll for the Bloomberg Global Business Forum that indicates U.S. support for free trade in the Trump era.

“Even one basic economics class shows that free trade is a way to maximize consumer welfare for all,” David Kass, professor of finance at the University of Maryland School of Business, said in a phone interview Friday. “There are always winners and losers, of course. But I think the majority of people have seen the benefits of free trade over recent years and decades.”

But American consumers are still likely to favor free trade since it largely leads to lower prices, according to Kass.

Americans “are able to purchase goods from other countries that may be less expensive than those produced here,” he said. “This would result in increased purchasing power for the consumer and an increase in standard of living.”

 Posted by at 12:21 pm
Sep 082017
 

I am quoted in a Washington Post article about Amazon seeking a second headquarters in North America.

But some say opening a sprawling new headquarters could help the tech giant win over local lawmakers.

“It would create a very favorable political environment wherever they located, such that the congressmen and senators where they locate would be supportive of the company if issues came up in Congress with antitrust,” said David Kass, a professor of finance at the University of Maryland. He added that if Amazon were to choose a location represented by both Democrats and Republicans, “they would be creating friends in Congress in both parties.”

He added that the Washington area, where Bezos recently bought a $23 million house, could be a likely contender. The area has a highly educated population and a growing pool of young workers. Plus, he said, keeping Amazon’s headquarters in the United States could help ease relations with the president, who has in the past been critical of the company.

“Amazon would be scoring many points with the president by saying, ‘Look, we are creating 50,000 American jobs,’” Kass said. “I think the president would appreciate that.”

 Posted by at 8:55 pm