Category: banks

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Interbank and Liquidity News Scan: Kashkari is open to a December rate cut.

Kashkari. Interest rates. Federal Reserve Bank of Minneapolis President Neel Kashkari, typically on the hawkish end of the U.S. central bank’s policy spectrum, said on Monday he is open to cutting interest rates again next month. Reuters. Trump. Tariffs. Markets. The dollar rallied on Tuesday, while European shares fell, after U.S. President-elect Donald Trump pledged tariffs on … Continue reading Interbank and Liquidity News Scan: Kashkari is open to a December rate cut.

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Political risks create either shorting opportunities or existential threats …

Four types of political risks arguably move interest rates. First, the perception of fiscal responsibility. If bond holders perceive an increased risk in the government defaulting on bond payments, or not collecting enough in taxes, bond holders will want a higher interest rate before lending the government more money. Second, the economic stances of a … Continue reading Political risks create either shorting opportunities or existential threats …

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When it comes to inflation, those Europeans are violent …

For merchants entering forward contracts for their international trade, they should keep in mind that markets, overall, are not too concerned about who wins the U.S. presidency, especially given the good odds that the Congress will be split and that whoever is chosen as Treasury secretary will likely maintain the U.S. policy of a strong dollar. Continue reading When it comes to inflation, those Europeans are violent …

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Three U.S. senators recommend a 75-basis point cut in the fed funds rate.

Between 9:02 am and 11:26 am, the CME FedWatch tool reflected an increase in the chances that the Federal Open Market Committee would increase the federal funds target range by 50-basis points. Traders expect a 61% chance of a 50-point increase. Chances of a 25-point increase has slipped to 39% at the time of this … Continue reading Three U.S. senators recommend a 75-basis point cut in the fed funds rate.

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As the Democratic national convention ramps up, what numbers are we looking at?

As of 10:03 am today, Bloomberg reports a yield of 4.05% and 3.88% on two-year and 10-year U.S. Treasuries, respectively. Data as of 16 August from the Board of Governors of the Federal Reserve System reported two-year and 10-year yields of 4.08% and 3.92%, respectively. Meanwhile, the markets are betting on a cut in the … Continue reading As the Democratic national convention ramps up, what numbers are we looking at?

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Could Harris be moved to a position to spin a positive narrative on banking?

In the 24 hours since President Joe Biden announced that he would not seek the Democratic Party nomination for president, the press has been analyzing and forecasting the positions Ms. Harris may take on a number of social and fiscal policy issues. Because my focus is on the banking system, I tried to nail down … Continue reading Could Harris be moved to a position to spin a positive narrative on banking?

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My quick email to Nikema Williams, Raphael Warnock, and David Scott regarding Powell’s upcoming testimony.

This morning, I sent U.S. Senator Raphael Warnock and U.S. Representatives Nikema Williams and David Scott an email message about Federal Reserve chairman Jerome Powell’s upcoming testimony to Congress. He appears tomorrow before the U.S. Senate Committee on Banking, Housing and Urban Affairs and on Wednesday before the U.S. House Committee on Financial Services. “Looking … Continue reading My quick email to Nikema Williams, Raphael Warnock, and David Scott regarding Powell’s upcoming testimony.

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Eastern Caribbean Central Bank and St. Kitts-Nevis commercial bank rates as of 2:39 pm AST

Eastern Caribbean Central Bank Foreign exchange rates: USD/XCD=2.7000 EUR/XCD=2.8881 GBP/XCD=3.4127 Monetary policy tools: Discount rate: 3.0% Call rate: 2.4% Source: Eastern Caribbean Central Bank. Government of St. Kitts and Nevis 45 Year Government Bond. Maturity Date: 18 April 2057. Interest rate: 1.50%. 20 Year Government Bond. Maturity Date: 18 April 2032. Interest rate: 3.00% Source: … Continue reading Eastern Caribbean Central Bank and St. Kitts-Nevis commercial bank rates as of 2:39 pm AST