Banking

Jobs Jump 678K from Jan

Update 590 — Jobs Jump 678K from Jan;Economy Hot but Inflation is too (TY Putin) Whether we know it or not, the U.S. economy is hotter than DC in July. With 678K new jobs added last month and unemployment under 4 percent now, and with omicron largely behind us, the issue is the gaping misperception.  This rosy …

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Focus on Bank Fees

Update 588 — Focus on Bank Fees:Overdraft Overhaul; is Junk Next? The specter of the first full-scale war in Europe since 1945 has hit the U.S. economy directly and immediately via capital market sell-offs, to be followed by energy and commodity price hikes and ways to be determined. Perhaps mundane by contrast is the auspicious …

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Regulating Stablecoin

Update 586 — Regulating Stablecoin:Talking Dollar 2.0, Crypto, or Klepto? Sunday’s Superbowl featured more crypto than anything else, suggesting a suddenly flush industry. What are the opportunities and risks that crypto presents? Stability is a rare quality in the world of cryptocurrencies, so where do stablecoins fit in? Are they currencies or securities? Who should …

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Sea Change at the Fed?

Update 585 – Sea Change at the Fed? Smooth Sailing for Slate of Nominees Everything from the cost of living to the cost of capital depends on the membership of the Federal Reserve Board. Dr. Lisa Cook, Sarah Bloom Raskin, and Dr. Phillip Jefferson — nominated by the President to fill out the vacancies on …

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Last Rodeo at Jackson Hole?

Update 553 — Last Rodeo at Jackson Hole?Rush to Renominate Fed Chair Powell Slows Investors and observers await Federal Reserve Chair Jerome Powell’s speech tomorrow at the Kansas City Fed’s annual Jackson Hole Conference. Issues abound: inflation, the still-recovering labor market, tapering down Fed’s balance sheet, and the economic uncertainty from the Delta variant. Unspoken is whether …

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You Can’t Bank on That

Update 546 — You Can’t Bank on That:63 Mil. Short of Credit, Account Services All eyes today were on the Senate’s bipartisan negotiations and an initial vote to move to debate on the infrastructure bill. Moments ago, Republicans defeated the motion, 51-49, with 60 votes needed. With GOP negotiators signaling they will not have bill …

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Powell Promotes Recovery

Update 545 — Powell Promotes Recovery;Accommodates Growth and Mild Inflation Federal Reserve Chair Jerome Powell testified this week before the House Financial Services and Senate Banking Committees. Since his last testimony in February, the economy has begun to improve, with strong GDP growth expected this year. Inflation, as expected, has increased.  He has much to say about …

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Optimal Levels of Inflation

Update 535 — Optimal Levels of Inflation:What to Hope For and Expect in Recovery The May jobs report, out today, reflects an economy in transition, headed steadily toward recovery. U.S. employers added 559,000 jobs last month and the unemployment rate went down by 0.3 percent. The favorable trajectory still leaves open the length of recovery …

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Megabank CEOs Hit Hill

Update 534 — Megabank CEOs Hit Hill:Issues, Attacks Heard; Less So Consensus The CEOs of the six “megabanks” testified before the Senate Banking and House Financial Services Committees this week, addressing issues ranging from the pandemic response to climate risk to racial justice to wage disparities. Some questions arose concerning the banking sector itself but …

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A Round with the Regulators

Update 532 — A Round with the Regulators:Financial Policy Issues Left, Front and Center These are flush times for banks — lending volume, interest rates, and share prices are on the rise and the economy is primed for a vertical recovery. What could go wrong? This week, Congress heard from the heads of the financial …

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