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Senate hearings on Federal Reserve monetary policy: Warnock surprised me today.

U.S. Senator Raphael Warnock, Democrat of Georgia, used his time during today’s U.S. Senate Committee on Banking, Housing and Urban Affairs hearing on monetary policy to tie the problem of affordable housing in Georgia to Federal Reserve System rate setting. Jerome Powell, chairman of the Board of Governors of the Federal Reserve System pointed out … Continue reading Senate hearings on Federal Reserve monetary policy: Warnock surprised me today.

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Interbank market news scan: Reference, foreign exchange, and administrative rates as of 9pm EST

Effective Federal Funds Rate: 5.33% Overnight Bank Funding Rate: 5.32% Secured Overnight Financing Rate: 5.33% Broad General Collateral Rate: 5.32% Tri-Party General Collateral Rate: 5.32% Interest on Reserve Balances: 5.40% Discount Window: 5.50% EUR/USD=1.0699 GBP/USD=1.2685 AUD/USD=0.6617 USD/JPY=157.2800 Sources: Board of Governors-Federal Reserve System. Federal Reserve Bank of New York. (What to step up your trading … Continue reading Interbank market news scan: Reference, foreign exchange, and administrative rates as of 9pm EST

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The Fed narrative and depositors. Is there a conflict?

A high school classmate shared with me her concern about looking for higher yielding accounts. Baby boomers closing in on retirement are either trying to accumulate more cash via compounding interest while saving more of our incomes and sticking those savings into accounts. Meanwhile the media is guiding our eyeballs and eardrums to the messaging … Continue reading The Fed narrative and depositors. Is there a conflict?

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A quiet day yesterday in the United States as foreign exchange markets got ready for Asia to open.

10-year bond yield and currency data from Bloomberg paint a quiet day in those markets. The GBP/USD stayed flat between 9:30 am to 4:15 pm with the rate going from 1.2686 to 1.2684. The EUR/USD was flat as well with ever so slight dollar weakening from 1.0847 to 1.0851 this afternoon. The Japanese yen demonstrated … Continue reading A quiet day yesterday in the United States as foreign exchange markets got ready for Asia to open.

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Should a president be allowed to manage the economy where she doesn’t provide actual facts?

If a president can’t give you full facts about the political economy, then should she be managing it? Last week, U.S. President Joe Biden announced that “inflation was at the pre-pandemic benchmark of 2 percent over the last six months of 2023.” The problem with this statement is that if year-over-year inflation was two percent during the … Continue reading Should a president be allowed to manage the economy where she doesn’t provide actual facts?