Throughout history, bank failures have been a regular occurrence. From the Panic of 1837 to the financial crash of 2008, banks have failed for myriad reasons ranging from individual miscalculations to macroeconomic instability. In the 19th century, bank failures were caused primarily by overexpansion and speculation. For example, when New York City banks loaned money […]
Read More(Bloomberg) — The Federal Reserve hasn’t had much success so far in wrestling down sky-high inflation, but its monetary tightening campaign is having a major impact in deflating asset bubbles that swelled during the pandemic. The cryptocurrency market — once valued at $3 trillion — has shrunk by more than two-thirds Investor-favored technology stocks have […]
Read More(Bloomberg) — Kansas City Federal Reserve Bank President Esther George said ample US savings will help to buffer households but could also mean higher interest rates are needed to cool spending. George told a panel Tuesday in Santiago hosted by the Central Bank of Chile that if savings are concentrated in wealthier households who tend […]
Read More(Bloomberg) — Wall Street’s biggest banks agree the Federal Reserve will hike US interest rates further into next year, but are at odds over how high it will take them and whether it will be cutting by the end of 2023. In a reflection of how tough Chair Jerome Powell’s job is becoming, leading economists […]
Read More(Bloomberg) — Bond traders are declaring victory over the Federal Reserve’s war on inflation after it slowed last month to a weaker pace than economist forecasts. A part of the yield curve that Federal Reserve Chair Jerome Powell watches closely to monitor recession risks inverted for the first time since the pandemic hit in early […]
Read More(Bloomberg) — The Federal Reserve “hasn’t accomplished anything” in loosening the US labor market even after four consecutive 75-basis-point hikes, former New York Fed President Bill Dudley said. Friday’s jobs report showing a 261,000 gain in payrolls and a slight uptick in unemployment in October is “not consistent with a loosening labor market,” Dudley, chair […]
Read More(Bloomberg) — The Federal Reserve suggested on Friday that lofty home prices could be susceptible to steep declines after big run-ups in recent years on the back of ultra-low interest rates. “With valuations at high levels, house prices could be particularly sensitive to shocks,” the Fed said in its semiannual Financial Stability Report released Friday. […]
Read More(Bloomberg) — Wall Street had already come to terms with prospects that the Fed would again raise interest rates by 75 basis points. But Wednesday afternoon was full of drama as traders first took hope from the central bank’s statement but then slumped following stern comments by Chair Jerome Powell. Stocks initially jumped and Treasury […]
Read More(Bloomberg) — Equities erased early gains ahead of the Federal Reserve’s policy meeting Wednesday. A gauge of the dollar fell and gold rose. European stocks and US futures were little changed after euro-area manufacturing activity sank to the lowest level since the first Covid-19 lockdowns in 2020 as record inflation and a weakening global economy […]
Read More(Bloomberg) — Investors just got over a hectic week, contending with a blitz of earnings from some of America’s biggest companies as well as a pile of uncertain economic and geopolitical news. But what’s coming may be even worse. In the span of just seven trading sessions, there will be four major events that could […]
Read More(Bloomberg) — Goldman Sachs Group Inc. economists said they now expect the US Federal Reserve to raise interest rates to 5%, higher than previously predicted. The central bank will lift its benchmark rate to a range of 4.75% to 5% in March, 25 basis points more than earlier expected, economists led by Jan Hatzius wrote […]
Read More(Bloomberg) — Federal Reserve officials will maintain their resolutely hawkish stance next week, laying the groundwork for interest rates reaching 5% by March 2023, moves that seem likely to lead to a US and global recession, economists surveyed by Bloomberg said. The Federal Open Market Committee will raise rates by 75 basis points for a […]
Read More(Bloomberg) — Profits and losses aren’t usually thought of as a consideration for central banks, but rapidly mounting red ink at the Federal Reserve and many peers risks becoming more than just an accounting oddity. The bond market is enduring its worst selloff in a generation, triggered by high inflation and the aggressive interest-rate hikes […]
Read More(Bloomberg) — The Federal Reserve can’t pause its campaign of monetary policy tightening once its benchmark interest rate reaches 4.5% to 4.75% if “underlying” inflation is still accelerating, Minneapolis Fed President Neel Kashkari said. “Core services inflation — which is the stickiest of all — keeps climbing, and we keep getting surprised on the upside,” […]
Read More(Bloomberg) — Inflation shows few signs of cooling in the economy. The same cannot be said of markets, which are starting to seem like the only thing the Federal Reserve has going for it these days. Even with Thursday’s big bounce, the S&P 500 has lost a quarter of its value this year. Shocking as […]
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