Category: Federal Reserve System

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No surprises as the Fed keeps rates the same. If there is a pivot, it is coming from the media not the Fed…

The takeaway … I listened to Jerome Powell’s press conference held yesterday after the release of the Federal Open Market Committee’s decision on the federal funds target range. The FOMC decided to maintain the target range at 5.25% to 5.50% by keeping its administered rates, the discount window and the interest on reserve balances, at … Continue reading No surprises as the Fed keeps rates the same. If there is a pivot, it is coming from the media not the Fed…

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Something stands out about foreign exchange broker spreads for the US dollar and Moroccan dirham.

The takeaway … I received a view of my blog from Morocco. That is the cool thing about this blog; I get to engage with people from around the world. I have never been to Morocco or the African continent for that matter. My son has been to Morocco and I have family in The … Continue reading Something stands out about foreign exchange broker spreads for the US dollar and Moroccan dirham.

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Foreign exchange, fed funds futures, and bond yields as of 9:35 am EST

The takeaway …. The Federal Open Market Committee is expected to announce no change in the target range for the federal funds overnight rate. The current target range is 5.25-5.50%. The federal funds rate is the rate banks charge for lending their reserves to each other overnight. The current effective (weighted) rate is approximately 5.33%. … Continue reading Foreign exchange, fed funds futures, and bond yields as of 9:35 am EST

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What is the Federal Reserve’s sentiment prior to its November meeting? Does it impact you?

We are in the quiet period here in the United States where the Federal Reserve conducts its media blackout prior to its next Federal Open Market Committee meeting. The markets are expecting at least one more change in the federal funds rate, the rate at which member banks lend each a portion of the reserves … Continue reading What is the Federal Reserve’s sentiment prior to its November meeting? Does it impact you?

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Interbank market: At 11: 56 pm EST, no change in the 30-day Federal Funds Futures …

The data … 30-day Federal Funds Futures: 94.55 Interest on Reserve Balances: 5.40% Discount Window: 5.50% Effective Federal Funds Rate: 5.33% U.S. Treasury 10-year bond: 4.91% The takeaway … Between August 2022 and August 2023, the U.S. monetary base has fallen 2.36%. The monetary base is comprised of currency in circulation and reserve balances. Currency … Continue reading Interbank market: At 11: 56 pm EST, no change in the 30-day Federal Funds Futures …

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Interbank market: At 8:29 am EST. Federal Reserve reference rates and fed funds options rate.

30-day Federal Funds Futures: 94.55 Interest on Reserve Balances: 5.40% Discount Window Rate: 5.50% Effective Federal Funds Rate: 5.33% EUR/USD: 1.0571 GBP/USD: 1.2202 We will circle back around later today after taking a look at Federal Reserve sentiment and any other political action that may impact the betting markets. Banks broker the bets. Lawyers write … Continue reading Interbank market: At 8:29 am EST. Federal Reserve reference rates and fed funds options rate.

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Could dollar weakening be in anticipation of the jobs report?

Currency pair 2 October 2023 3 October 2023 4 October 2023 5 October 2023   EUR/USD 1.0489 1.0472 1.0508 1.0547 Dollar weakening GBP/USD 1.2099 1.2077 1.2139 1.2193 Dollar weakening AUD/USD 0.6366 0.6303 0.6322 0.6370 Flat USD/JPY 149.8064 148.8225 149.1097 148.5140 Dollar weakening USD/CHF 0.9180 0.9207 0.9171 0.9131 Flat USD/CAD 1.3671 1.3711 1.3744 1.3714 Dollar strengthening … Continue reading Could dollar weakening be in anticipation of the jobs report?

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Foreign exchange: The dollar appears to be following the extended higher rates narrative and Washington is helping …

U.S. Representative Matt Gaetz, Republican of Florida, made an off the cuff statement today to reporters about the U.S. dollar when asked about efforts to remove U.S. Speaker of the House Kevin McCarthy, Republican of California, from his leadership position. Mr Gaetz has been taking issue with Speaker McCarthy’s apparent temporary alliance with Democrats after … Continue reading Foreign exchange: The dollar appears to be following the extended higher rates narrative and Washington is helping …

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How do Blacks navigate a currency system they did not create? By showing they know the currency system better than anyone else.

Black Americans have been making arguments about reparations for slavery for decades. The argument that the United States owes the descendants of Africans brought to the United States is a powerfully emotional one. Today’s Blacks are either descendants of African indentured servants who saw their contracts for freedom broken by wealthy Anglo-Saxon landowners, merchants, or … Continue reading How do Blacks navigate a currency system they did not create? By showing they know the currency system better than anyone else.