Tag: Federal Open Market Committee

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I see baby Boomers seeking yield. Will the U.S. central banking system accommodate them?

In comments made last week by a number of members of the Federal Open Market Committee, traders and investors should hold their horses on a cut in overnight banking rates anytime before June 2024. There appears to be some sentiment among Committee members that reducing the overnight lending rate between banks (federal funds rate) and … Continue reading I see baby Boomers seeking yield. Will the U.S. central banking system accommodate them?

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The Court’s role in supporting monetary policy.

At times I think that traders and bank depositors operate in sandboxes oblivious to the rest of the playground that surrounds their play area. The media offers enough noise to distract market participants from the philosophy that orders the interaction between the State, the banking system, and transactional markets. I consider banks to be the retailer of … Continue reading The Court’s role in supporting monetary policy.

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The federal funds rate: In the end, is it not about supporting the banking system?

The Federal Open Market Committee is set to meet on December 12-13, 2023 to determine the target range for the federal funds rate. The federal funds rate is the interest rate at which depository institutions lend balances held either at the Federal Reserve or in their bank vaults to other depository institutions overnight. The current … Continue reading The federal funds rate: In the end, is it not about supporting the banking system?

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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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A quiet Monday morning before the Federal Open Market Committee meeting …

I sit in the group that sees a 19.6% chance that the FOMC increases the fed funds target range by 25 basis points to a range of 5.25% to 5.50%. For the asset-less, wage earning class, we may benefit from rate increases due to greater returns on the cash we accumulate. Also, for those of us who were able to hoard cash, falling asset prices may give us a chance to accumulate other income generating assets or purchase non-income generating assets and convert them into money makers. Continue reading A quiet Monday morning before the Federal Open Market Committee meeting …