Category: Federal Reserve System

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The Interbank Market News Scan: I expect the euro to continue dropping throughout the day… 8:45 AM EST

Looming in the background is the negative impact a slowed down economy will have on the Biden Administration and to a lesser extent the incumbents in the Congress. As the Biden Administration and the Congress negotiate the debt ceiling, there is the threat that fiscal policy in the form of higher taxes may be offered up as a way to shore up lacking tax revenue. This will also put a crimp on household and business spending. Continue reading The Interbank Market News Scan: I expect the euro to continue dropping throughout the day… 8:45 AM EST

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Interbank Market News Scan: I expect the EUR/USD to close above 1.0808 tomorrow.

The Stats … 30-Day Federal Funds Options (ZQV3): 94.99 Source: CME Group. Effective Federal Funds Rate: 5.08% Discount Window: 5.25% Interest on Reserve Balances: 5.15% EUR/USD=1.0856 USD/JPY=135.6300 GBP/USD=1.2464 AUD/USD=0.6649 NZD/USD=0.6193 Source: Board of Governors-Federal Reserve System. DXY=103.04 Source: MarketWatch. Today’s Definition: Effective federal funds rate “A volume-weighted median of transaction-level data collected from depository institutions.” … Continue reading Interbank Market News Scan: I expect the EUR/USD to close above 1.0808 tomorrow.

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Interbank Market News Scan: What retail traders should look at from the Federal Reserve perspective at 8:43 am EST.

The Stats … 30-Day Federal Funds Futures and Options: 95.135 Source: CME Group. Effective Federal Funds Rate: 5.08% Federal Funds Target Range: 5.00% to 5.25%. Discount Window: 5.25% Interest on Reserve Balances: 5.15% U.S. Ten-Year Treasurys: 3.39% EUR/USD=1.1026 USD/JPY=134.8500 GBP/USD=1.2650 AUD/USD=0.6747 NZD/USD=0.6299 Source: Board of Governors-Federal Reserve System. https://traderswithedge.com/?r=348. Today’s Definition: market maker. “A firm … Continue reading Interbank Market News Scan: What retail traders should look at from the Federal Reserve perspective at 8:43 am EST.

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Interbank Market News Scan: Fed funds, bitcoin, and foreign exchange rates at 9:40 am EST

The takeaway: The role of government is to feed the bond markets … Markets are not the creation of people. Markets are the creation of kings and courts designed to encourage the efficient extraction of energy, yield, and taxes. The king’s currency is a derivative of real money, the yield and energy produced by the … Continue reading Interbank Market News Scan: Fed funds, bitcoin, and foreign exchange rates at 9:40 am EST

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Interbank Market News Scan: Where bitcoin, foreign exchange, Treasurys, and Fed administered rates stand at 10:23 am EST.

30-Day Federal Funds Options (June 2023 ZQM3): 94.92 Fed Funds Target Range: 5.00-5.25% Effective Federal Funds Rate: 5.08% Interest on Reserve Balances: 5.15% Discount Window Rate: 5.25% Two-year Treasurys: 4.00% Ten-year Treasurys: 3.52% Prime Rate: 8.25% EUR/USD: 1.1026 USD/CAD: 1.3419 GBP/USD: 1.2650 DXY: 101.36 BTC/USD: 28138 Sources: CME Group, Board of Governors-Federal Reserve, MarketWatch. Continue reading Interbank Market News Scan: Where bitcoin, foreign exchange, Treasurys, and Fed administered rates stand at 10:23 am EST.

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Interbank Market News Scan: Banks need a new philosophy.

The takeaway … Banking on a new philosophy. Is it time to make consumer lending by banks illegal? Yes. Consumers should raise cash from private individuals and households to the extent that the activities of these private individuals and households have no impact on the money supply. The focus of nationally chartered banks should be … Continue reading Interbank Market News Scan: Banks need a new philosophy.

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Interbank Market News Scan: What the fed funds futures market is telling me …

The Federal Reserve Discount Window rate is up to 5.25% after the Federal Open Market Committee decided yesterday to increase its fed funds target range to 5.00% to 5.25%. At this writing, the Federal Funds Futures quote is 95.31 which reflects an average effective fed funds rate of 4.69%. Given that the target range was … Continue reading Interbank Market News Scan: What the fed funds futures market is telling me …

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The Community Reinvestment Act not an example of political outcome for blacks

Black politicians concerned about protecting their communities via banking should have been advocating that the Federal Reserve increase rates hard and fast. While the increase in rates would have been accompanied by a decrease in house prices, non-blacks would have thought twice about buying up black neighborhoods while black homeowners using data evincing falling values could have petitioned for lower property taxes based on those falling values. Continue reading The Community Reinvestment Act not an example of political outcome for blacks

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Interbank market news scan: Rates on Treasurys continue to inch up in week prior to Fed Day

On this first impression I expect both chambers of Congress to make the supposed banking crisis less of an issue especially as we move further into the campaign season. Congress, particularly congressional Democrats, do not want to be perceived as facilitators of a worsening political economy. Continue reading Interbank market news scan: Rates on Treasurys continue to inch up in week prior to Fed Day