Operating at the Intersection of Technology and the Capital Markets
Tag: Federal Reserve
We critique Fed Chairman Powell's recent FOMC YouTube clip comments (video below) by time stamp. 0:07 - The Fed continues to purchase Treasuries ($80 billion per month) and MBS ($40 billion per month), thereby artificially suppressing interest rates while inflating the money supply. The Fed's actions - increasing the money supply - are solely responsible … Continue reading A Fed Critique By Time Stamp
China today outlawed digital currency transactions as it ramps-up its digital Yuan effort. Our guess - as we previously wrote - is that the Fed will take similar action once it rolls out the digital USD. Read more about China's actions HERE. Related TEK2day reports & articles: article: A Digital Dollar Is Comingarticle: The Fed … Continue reading China Bans Crypto Transactions
The Atlanta Fed's GDPNow estimate of 3.6% real GDP for Q3, down from 3.7% a week earlier provides the Fed with the narrative necessary to not taper MBS asset purchases (currently approximately $40 billion per month), nor Treasury purchases (approximately $80 billion per month). Investors ought to stick to quality names. In the face of … Continue reading Muted Real GDP Provides The Fed With Excuse Not To Taper. Stick To Quality.
We published our TEK2day Spotlight report - The Evolving Insurance Industry - a few weeks ago. We hosted a follow-up podcast episode with two of the SS&C Technologies (ticker: SSNC), executives that were involved with that effort. You may view the video podcast at the YouTube link below. If any difficulties, simply visit CEORater's YouTube … Continue reading TEK2day Podcast Ep. 441: Insurers & Alternative Asset Investing with SS&C Technologies
One would think Fed officials would have the common sense to not trade in stocks at a time when the Fed's heavy hand dominates the capital markets. Fundamentals have mattered little since April 2020 as a result of the Fed's ultra-dovish monetary policy. Yet as reported by the Wall Street Journal certain Fed officials engaged … Continue reading Fed Officials Trading Behavior Is Disappointing, Not Surprising
The Atlanta Fed's real GDP estimate of 3.7% is well below inflation as measured by the Fed (CPI of 5.4%) and well below any real world price inflation measure. We do not subscribe to the Fed's theory that price inflation is transitory. Our view is that price inflation will grow from here. If real GDP … Continue reading It Is Beginning To Look Like Stagflation
The Fed's digital U.S. Dollar will happen. The question is which FinTech firms and traditional Financial Institutions will best leverage it. The Fed will quickly become a FinTech firm and Consumer Depository Institution of primary importance once it goes live with its digital U.S. Dollar. A whole new slate of FinTech firms will rise, building … Continue reading Leveraging The Fed’s Digital Dollar
Our view is that the Fed will only truly pursue an extended tightening course (full wind down of QE followed by rate hikes), if price inflation continues to where the Biden Administration feels it will cost the Democrat Party in the 2022 mid-term elections and/or hurt Biden's chances for re-election in 2024. The Fed is … Continue reading Our View On Fed Tightening and M&A
We are not buying the happy talk that investors have digested a winding down of QE and a potential Fed Funds Rate hike in late 2022 or 2023. When the Fed begins to tighten (tapering of QE followed by lifting interest rates), markets will care. It is not logical to suggest that investors have largely … Continue reading Investors Will Care Once The Fed Tightens
There is no surprise to today's 5.4% reported CPI increase. Price increases of goods and services are here to stay. The Federal Reserve has inflated the money supply significantly since April 2020 without a commensurate increase in productivity. We have another $1 trillion in spending (and money printing), coming associated with the Biden Administration's infrastructure … Continue reading Price Increases Are Here To Stay
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