Category: banks

Posted on

I see baby Boomers seeking yield. Will the U.S. central banking system accommodate them?

In comments made last week by a number of members of the Federal Open Market Committee, traders and investors should hold their horses on a cut in overnight banking rates anytime before June 2024. There appears to be some sentiment among Committee members that reducing the overnight lending rate between banks (federal funds rate) and … Continue reading I see baby Boomers seeking yield. Will the U.S. central banking system accommodate them?

Posted on

Domestic mercantilism keeps the race question out of banking …

Lineage is the framework through which I see myself in this political economy. My views on the political economy are steeped in observing my family members participate in trade. I saw members of both sides of my family in the Eastern Caribbean act as retail and wholesale merchants. Through merchant activity they brought their communities value. Value gets … Continue reading Domestic mercantilism keeps the race question out of banking …

Posted on

How the Democratic and Republican philosophies differ on managing the value of the currency.

I liken the Democratic and Republican parties as two major management companies pitching their management styles as the best one for managing the political economy. Political campaigns between Democrats and Republicans are public battles over whose philosophy and narrative should be allowed to guide the nation-state. As “privateers” for the political economy, banks and their trading … Continue reading How the Democratic and Republican philosophies differ on managing the value of the currency.

Posted on

Beware of political strategists. Your goal is to become an agent of State power…

You should beware of today’s political strategist. Their job is to sell you on the idea of voting for certain candidates at best and, while they struggle with economics 101, sell you on proposed policies and legislation that supposedly are created to meet your self-interest. None of these strategists know you, but, according to their focus group … Continue reading Beware of political strategists. Your goal is to become an agent of State power…

Posted on

The Court’s role in supporting monetary policy.

At times I think that traders and bank depositors operate in sandboxes oblivious to the rest of the playground that surrounds their play area. The media offers enough noise to distract market participants from the philosophy that orders the interaction between the State, the banking system, and transactional markets. I consider banks to be the retailer of … Continue reading The Court’s role in supporting monetary policy.

Posted on

The federal funds rate: In the end, is it not about supporting the banking system?

The Federal Open Market Committee is set to meet on December 12-13, 2023 to determine the target range for the federal funds rate. The federal funds rate is the interest rate at which depository institutions lend balances held either at the Federal Reserve or in their bank vaults to other depository institutions overnight. The current … Continue reading The federal funds rate: In the end, is it not about supporting the banking system?

Posted on

What is the federal funds rate? Should the Fed worry about not meeting its mandates under law?

Today’s rates …. 30-Day Federal Funds Futures: 94.69. Effective Federal Funds Rate: 5.33%. Interest on Reserve Balances: 5.40%. Discount Window: 5.50%. CME FedWatch: 96.8%. EUR/USD=1.0931. GBP/USD=1.2594. USD/JPY=149.6608. (Foreign exchange rates as of 7:38 pm EDT.) Today’s definition … Federal funds rate-the interest rate at which depository institutions lend reserve balances to other depository institutions overnight. … Continue reading What is the federal funds rate? Should the Fed worry about not meeting its mandates under law?