2 min readThe minutes from the FOMC’s January meeting were released yesterday, revealing that the Fed believes that keeping interest rates low and continuing asset purchases are necessary to support the economic recovery. The Fed indicated that December’s $900B stimulus package, the prospect of a new round of stimulus and the continued distribution of the COVID-19 vaccines…
2 min readThe Federal Reserve held its first meeting of the new year and affirmed their commitment to a near zero interest rate environment, saying “The pace of the recovery in economic activity and employment has moderated in recent months, with weakness concentrated in the sectors most adversely affected by the pandemic.” The Fed indicated that they…
2 min readAfter experiencing the most tumultuous year on record, the major stock indices finished 2020 in a strong manner. On the last day of December, the S&P 500 logged its 14th record close of 2020 while the Nasdaq just missed its 56th record close by approximately 10 points. For the year, the DJIA rose 7.2%, the…
2 min readThe Federal Reserve held its last meeting of the year this week and to no one’s surprise, it left the overnight lending rate unchanged at the 0.00% to 0.25% range. As it wraps up a tumultuous 2020 and looks forward to the new year, the Fed is focused on supporting “the U.S. economy in this…
2 min readA Momentous Week All eyes are on the United States as Election Day finally arrives and a bitterly contentious campaign cycle draws to a close. An estimated 100 million early votes were cast in advance of Election Day and the country appears to be heading for a record presidential election turnout. The focus now shifts…
2 min readInflation & Employment Readings on consumer inflation this week remained tame overall with wide variance around the average for certain components. CPI for September was up just 1.4% year-over-year and Core CPI was up 1.7% year-over-year. Weekly Initial Jobless Claims remain high at nearly 900,000 in the week ended October 10. Surging COVID-19 infection rates…
2 min readFed officials are committed to the current level of rates until inflation exceeds 2% Several Fed officials spoke in late September on the timing of future interest rate hikes in relation to the inflation target of 2%. Chicago Fed President Evans reversed his earlier position that the Fed could start raising rates before inflation reaches…
6 min readBecause credit card asset-backed securities (ABS) are tied directly to the strength or weakness of consumer finances, economic downturns can be perilous to their health. Therefore, it’s no surprise that the high unemployment and low consumer spending in the current economic downturn are putting ABS under scrutiny. So far, however, this class of securities has…
2 min readFOMC Minutes Released The minutes from the FOMC’s July 28-29 meeting were released today. In the committee’s discussion about how to continue to support the flow of credit to consumers, they deemed “it would be appropriate over coming months for the Federal Reserve to increase its holdings of Treasury securities and agency residential mortgage-backed securities…
1 min readCOVID-19 infection rates have fallen dramatically in most industrialized nations, but new cases in the U.S. and in developing countries have surged to record levels in the last few weeks. Despite the serious setbacks, lawmakers in the U.S. continue to grapple with how to most appropriately implement mask requirements to slow the spread of the…