Category: interbank market

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Crypto: If passed, how long will regulators hold back from chipping away at the Keep Your Coins Act?

The takeaway … Last week, U.S. Senator Ted Budd, Republican of North Carolina, introduced S.3229, the Keep Your Coins Act. The bill prohibits Federal agencies from restricting the use of convertible virtual currency by a person to purchase goods or services for the person’s own use, and for other purposes. Customers are allowed, under the … Continue reading Crypto: If passed, how long will regulators hold back from chipping away at the Keep Your Coins Act?

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Jerome Powell simply chooses not to opine on fiscal policy. Congress chooses not to read the Fed’s reports.

The takeaway … Two times a year, the Chairman of the Board of Governors of the Federal Reserve System heads up to Capitol Hill to deliver a semi-annual report on the state of U.S. monetary policy to both chambers of Congress. You can almost guarantee that at least two representatives or two senators will ask … Continue reading Jerome Powell simply chooses not to opine on fiscal policy. Congress chooses not to read the Fed’s reports.

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Federal Reserve’s true dual mandate: No central bank in its right mind wants to reduce inflation.

The takeaway … I like to take a common man approach to understanding what is happening at the Federal Reserve, at least I try to. We hear all the academic and political explanations for why the Federal Reserve System exists, how it came about, etcetera, etcetera. Last night during the GOP presidential primary debates held … Continue reading Federal Reserve’s true dual mandate: No central bank in its right mind wants to reduce inflation.

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Georgia and the Fed: Is Atlanta putting too much housing supply out there?

The takeaway …. Driving through the streets of Atlanta and new apartment building development appears on the rise. I shudder to think what rents may be for these new developments. I have seen prices for new multi-family developments in the East Atlanta/Inman Park/Reynoldstown area starting at purchase prices in the upper $500K range. Yes, the … Continue reading Georgia and the Fed: Is Atlanta putting too much housing supply out there?

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A reduction in the interchange fee cap may not hurt debit card transactions activity….

The takeaway … Back on 25 October 2023, the Board of Governors of the Federal Reserve System voted to reduce the cap on the interchange fee, a fee received by debit card issuers. 12 CFR 235.2(j) defines the interchange fee as “any fee established, charged, or received by a payment card network and paid by … Continue reading A reduction in the interchange fee cap may not hurt debit card transactions activity….

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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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Will the AUD/USD keep falling through end of the week? Can Biden influence Albanese’s visit to China?

AUD/USD=0.63201 There is more to Australia than the Australian Open, which I look forward to each year because it signals the beginning of the tennis season ( For my fellow tennis-heads, the dates are 14 January to 28 January 2024). Prior to the tennis hardcourt play down under is the political hardcourt play in the … Continue reading Will the AUD/USD keep falling through end of the week? Can Biden influence Albanese’s visit to China?