The Fed

Powell Signals Pre-emptive Cut

Update 365:  Powell Signals Pre-emptive Cut Summer’s Sunny Sky Deceives or Fall Inevitable? This seems like a point of departure for the Federal Reserve Board.  It is rare for the Fed to reverse course on interest rate policy — raise and then cut rates in consecutive rate changes.  It is passing rare for the Fed to …

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The Economic Debate Offstage

Update 362 — The Economic Debate Offstage:Corporate Debt and Emerging Financial Risks All eyes will be on the first Democratic debate tonight in Miami.   Starts 9:00 pm ET and ends at 11:00. Ten — half the qualifying field of candidates — will participate tonight.  The other half will do so at the same venue …

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Wall St. Regulators Face Music of House ‘18 Class

Update 352 — Wall St. Regulators Face Music of House ‘18 Class at HFSC Hearing Tomorrow Today, we mourn the loss of Alice Rivlin, founding director of the Congressional Budget Office and a “decathlete” of high-level public office.  Her steady hand and even temper weathered multiple administrations and several financial crises, both local and national. …

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Fed Stability Report and the Perils of Prediction

Update 350 — Fed Stability Report and the Perils of Prediction, Cycles, and Psychology On Monday, the Federal Reserve released its latest assessment of risks to the financial system in its biannual Financial Stability Report.  The Report mainly focused on the increase in high risk corporate debt — or leveraged loans (see last week’s update). …

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Fed Chair Powell Cites Concerns, Holds Rates in Place (February 28)

Update 334: Hitting Hill for Humphrey-Hawkins;Powell Cites Concerns, Holds Rates in Place This Tuesday and yesterday, Federal Reserve Chairman Jerome Powell appeared before Senate and House Committees to report, as the Fed Chair does semi-annually, on the state of the economy and monetary policy.  In his July 2018 testimony, Chairman Powell painted a picture of …

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Fed Undertakes Implementation of S. 2155 (November 16)

Update 313 — Quarles Tailoring Too Swiftly? Fed Undertakes Implementation of S. 2155 The current Congressional interregnum known as the Lame Duck session affords a chance to consider how the Fed plans to implement S. 2155, the broadest rollback of Dodd-Frank to date.  So far, evidence suggests that the implementation process be watched closely. It …

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Fed Developments – How Trump is Shaping Financial Regulations (October 9)

Update 304: Fed Developments – Nominations and Rules; How Trump is Shaping Financial Regulations On September 26, far away from the Kavanaugh maw, the Federal Open Market Committee (FOMC) voted to raise the target range for the federal funds rate from 2 to 2.25 percent. The market expects one more rate hike this year, three …

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