Operating at the Intersection of Technology and the Capital Markets
Tag: Chairman Powell
The Fed likely won't taper asset purchases this calendar year. It should, but it won't. **Purchase our Amazon Kindle book Stagflation Is Imminent: HERE We previously mentioned mid-term elections as one reason why the Fed won't take away the punch bowl. Second, the Labor Participation rate - a key economic indicator for the Fed - … Continue reading The Fed Will Not Taper In 2021. Inflation Is Not Transitory.
Treasury Secretary Yellen's minimum global corporate tax is not yet global law but soon will be. The U.S. and Western European Governments and Central Banks have marched in lock step since 2008's Financial Crisis. A decade-plus of record fiscal spending, accommodative monetary policy (a Keynesian's dream) has led to record, expanding fiscal deficits that will … Continue reading Yellen’s Minimum Global Corporate Tax Is A Big Deal
A digital currency world is coming. The 2022 Beijing Olympics will operate via a digital RMB for local attendees and may include digital cross-border payments as well. Our Federal Reserve is experimenting with digital currency. Both Fed Chair Powell and Treasury Secretary Yellen have talked down Bitcoin and said the U.S. will move slowly with … Continue reading Square, PayPal, and Apple Will Dominate A Digital Currency World
We recently wrote that weening the equity market and Americans off of easy money will be difficult. We expect The Federal Reserve to march in lockstep with Congress and Treasury rather than act as the independent check on Government the Fed was meant to be. Thus, we expect monetary policy to remain loose for the … Continue reading The Fed’s Evolution From Independent Agency to Treasury Subsidiary
Powell is a paper-loving, paper-printing Fed Chair. Powell has never hesitated to print his way out of a tough spot. We predict that should the equity markets roll over another 10-15 percentage points Powell and his band of merry Federal Reserve Board members will seek to support the equity markets with Equity ETF purchases. Tickers … Continue reading Powell Is A Paper Fed Chair. That’s Good News for Stocks.
Fiscal and Monetary policy enjoys a symbiotic relationship. Both the fiscal side of the house as well as the monetary side believe (in true Keynesian fashion) that spending is the answer to nursing the U.S. Economy back to health. This shared philosophy ensures that fiscal and monetary policies - State-Led Capitalism - will be coordinated … Continue reading Fiscal & Monetary Policies Are Joined at the Hip
Fed Chair Powell's comments on Thursday were in-line with our perspective published on Wednesday. The Fed will continue to work to "stimulate" the economy (it can't of course, it can only inflate asset prices). However, every time Chairman Powell mentioned "full employment" in his speech I couldn't help but think of the job dislocation that's … Continue reading Dovish Fed Policy Speaks to A Weak Economy and Permanent Job Dislocation. We Propose A Solution.
Adobe (ADBE), Amazon (AMZN), Apple (AAPL), Broadcom (AVGO), Microsoft (MSFT) and Oracle (ORCL) were among the Technology companies included in the Fed's July 10th SMCCF disclosure. The Fed has purchased $137 million par value of Technology company fixed income securities through June 26th or approximately 9% of a total par value of approximately $1.5 billion. … Continue reading Fed Disclosure: Secondary Market Corporate Credit Facility Includes Amazon, Apple, Microsoft & More
Q3'20, Q4'20 and calendar 2021 consensus estimates need to come down. Why? 21% unemployment (U6 measure), permanent economic damage that businesses suffered (and will continue to suffer), as a result of the shutdown, the COVID "back-to-work tax", the threat of a second COVID wave, geopolitical risk, record debt levels and social unrest have created more … Continue reading Expect A Bumpy Ride For The Economy and The Capital Markets Over The Next Several Years.
Sellside analysts have too much time on their hands. There is zero logic as to why Apple should acquire a search engine. If Apple (tkr: AAPL), were to acquire a search engine it would have a difficult time taking market share from Google (tkr: GOOG). It is more likely that an Apple-owned search engine would … Continue reading Apple Is Not Going to Acquire A Search Engine
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