Operating at the Intersection of Technology and the Capital Markets
Tag: Jerome Powell
Three or four quarter point rate increases in 2022 won't be nearly enough to curb inflation. The Fed does not have the luxury of taking interest rates anywhere near the Volcker-era Fed. Thus, inflation is likley to persist for an extended period of time measured in years not months. Further, we do not believe that … Continue reading Too Little Too Late
Ms. Brainard is a vocal advocate for a Fed-issued CBDC ("Central Bank Digital Currency"). China has rolled out its CBDC and the public is about to hear more about it during February's Beijing Winter Olympics. Thus, while the consensus is that President Biden will soon reappoint Jerome Powell to begin his next term as Federal … Continue reading Lael Brainard As The Next Fed Chair Is More Likely Than Pundits Believe
The Fed's "Fed Funds Rate" forecast for the next several years is not realistic. Our view is that the Fed will move to raise its Fed Funds Rate more quickly than its published forecast (see page 2 of 17). The Fed anticipates median Fed Funds Rates of 0.3%, 1.0% and 1.8% in 2022, 2023 and … Continue reading Fed Funds Rate Will Increase Faster Than Fed’s Forecast
Fed Chair Powell's statement to be made Tuesday at 10:00am ET to the Committee on Banking, Housing, and Urban Affairs acknowledges that inflation may not be as "transitory" as the Fed initially thought. Powell's statement to the committee is below. Powell knew this would be the case months ago but the Fed will never admit … Continue reading Powell Acknowledges Inflation Could Persist Longer Than Anticipated
Earlier today Boston Fed President Eric Rosengren announced his September 30th retirement. This afternoon Dallas Fed President Robert Kaplan announced he will step down effective October 8th. We first wrote about the Fed's poor governance earlier this month. Chair Jay Powell's resignation would be the icing on the cake but that news is not forthcoming. … Continue reading The Second Domino Falls As Kaplan Steps Down From His Dallas Fed Post
We recently wrote that it was outrageous for Fed officials to have traded equities as the Fed was doing deals with corporate issuers in 2020. One of the offenders - Boston Fed President Eric Rosengren - has been dealt with. The other direct offender was Dallas Fed President Robert Steven Kaplan. Frankly, Chairman Powell ought … Continue reading Boston Fed President Eric Rosengren Announces He Will Retire Sept. 30
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
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 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
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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