Tag: monetary policy

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Could it be more about where the banks want to go versus where traders think the Fed wants to go?

Over the weekend, I spoke to my contacts in the banking industry trying to get a feel for banker sentiments on the Fed’s interest rate policy. The sentiments boiled down to the banks taking whatever the Fed decides in stride. As one contact put it, it’s about the money and the banks will take what … Continue reading Could it be more about where the banks want to go versus where traders think the Fed wants to go?

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Will Bostic or Goolsbee say something that will move the markets today?

Federal Reserve Bank of Atlanta president and chief executive officer Raphael Bostic and Federal Reserve Bank of Chicago president and chief executive officer Austan Goolsbee will each deliver remarks today on monetary policy and issues pertinent to the districts within which their banks operate. President Goolsbee is a member of this year’s Federal Open Market … Continue reading Will Bostic or Goolsbee say something that will move the markets today?

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Not much moved me about Chairman Powell’s testimony this week …

Jerome Powell, chairman of the Board of Governors of the Federal Reserve System wrapped up his semi-annual visit to Capitol Hill basically saying all is well with the Fed’s implementation of monetary policy. Chairman Powell assured both the House yesterday and the Senate today that the labor market was at or near maximum employment although … Continue reading Not much moved me about Chairman Powell’s testimony this week …

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US-Eastern Caribbean Interbank Market News Scan: American central bankers see drop off from Trump effect.

What we’re reading. Federal Reserve Bank of St. Louis. Alberto Musalem. Monetary policy. “St. Louis Fed President Alberto Musalem discussed the importance of the Fed’s regional structure and shared his views on the U.S. economic outlook and monetary policy at an event in Paducah, Ky. He gave a speech, “Remarks on the U.S. Economic Outlook … Continue reading US-Eastern Caribbean Interbank Market News Scan: American central bankers see drop off from Trump effect.

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Interbank market news scan: Treasury yields continue their fall the wrong way. Congress not noticing.

The data …. The two-year, ten-year, and thirty-year Treasury rates continued their downward path today. According to data from the U.S. Treasury, the two-year rate moved from 4.07% to 4.05%. The ten-year rate fell from 4.30% to 4.25%, while the 30-year rate fell from 4.55% to 4.51%. Meanwhile, data from the Federal Reserve Bank of … Continue reading Interbank market news scan: Treasury yields continue their fall the wrong way. Congress not noticing.

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Interbank market news scan: As the GOP takes a closer look at monetary policy, does it risk extending inflation?

The monetary policy takeaway …. GOP members of the U.S. House Committee on Financial Services are flexing their constitutional muscles on monetary policy. On 4 March 2025, the Committee’s Task Force on Monetary Policy, Treasury Market Resilience, and Economic Prosperity will hold a hearing on monetary policy and economic prosperity. “The actions of the Federal … Continue reading Interbank market news scan: As the GOP takes a closer look at monetary policy, does it risk extending inflation?

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Interbank market news scan: Is the U.S. House task force on monetary policy more political than monetary?

U.S. Representative French Hill, Republican of Arkansas and chairman of the U.S. House Committee on Financial Services, announced earlier this week the formation of the Monetary Policy, Treasury Market Resilience, and Economic Prosperity Task Force. According to Mr. Hill’s statement: “The Committee’s new Task Force will conduct hearings looking into issues relating to monetary policy, … Continue reading Interbank market news scan: Is the U.S. House task force on monetary policy more political than monetary?

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How the Democratic and Republican philosophies differ on managing the value of the currency.

I liken the Democratic and Republican parties as two major management companies pitching their management styles as the best one for managing the political economy. Political campaigns between Democrats and Republicans are public battles over whose philosophy and narrative should be allowed to guide the nation-state. As “privateers” for the political economy, banks and their trading … Continue reading How the Democratic and Republican philosophies differ on managing the value of the currency.

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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.