The issue for me is whether the Federal Reserve is acting as a regulator of the interbank market or are banks regulating themselves, using the fed funds rate and IORB as caps and borrowing from the discount window when there is no other choice. Continue reading Is the Federal Reserve really not needed?
The takeaway … Loretta Mester, president and chief executive officer of the Federal Reserve Bank of Cleveland shared with CNBC her view that while the recent consumer price index print for October 2023 was positive, the Federal Reserve System was not going to react to one data release. Inflation in October, as measured by the … Continue reading One Fed governor and one Fed bank president emphasize caution on rates ….
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?
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.
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.
The takeaway … The election is one year away, and President Joe Biden has some work to do. According to a The New York Times/Sienna College poll, Mr Biden is losing to Donald Trump in five of six pivotal states. Should forecasts hold, Mr Trump could very well carry the Electoral College by at least … Continue reading Why hasn’t Biden passed off to the Fed the blame for economic uncertainty?
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?
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….
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…
Lawyers Write the Bets. Bankers Sell the Bets. 