Update 370 — Powell Pivots to a Rate Cut;25 bps (Bonus Points) for Capital Markets The old joke is that the Fed is there to pull the punchbowl away before the party ends in mayhem and tears. This afternoon, the Fed re-filled the punchbowl and announced, if you can drink, please do. The first Fed …
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 …
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 …
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. …
Wall St. Regulators Face Music of House ‘18 Class Read More »
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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Update 341: Trump Seeks to Put Moore on FRBRaising Independence, Qualifications Questions On Friday, President Trump nominated Stephen Moore to a 14-year term as a member of the Federal Reserve Board of Governors to fill one of two open Fed Board seats. Moore is a former Trump employee who some fear is woefully unprepared not …
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 …
Fed Chair Powell Cites Concerns, Holds Rates in Place (February 28) Read More »
Update 325 — Economic Groundhog DayNo Shadows; Corporate Debt Clouding Horizon The American debt binge is not limited to the national debt. As we will show below and in the next update, private debt has scaled up in recent years just as precipitously, to mix monetary metaphors. We start today with a look at …
Update 316 — Fed Stability Report: Incomplete Missing: Systemic Risk and TBTF Analysis Yesterday, the Dow lost over 800 points, its third worst point decline in history; the S&P 500 saw its steepest fall since February. Waves of selling are hitting Wall Street amid fear of slowing economic growth and trade tensions between the U.S. …
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 …
Fed Undertakes Implementation of S. 2155 (November 16) Read More »
