Operating at the Intersection of Technology and the Capital Markets
Tag: Jerome Powell
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
“Given the low level of interest rates, there’s no issue about the United States being able to service its debt at this time or in the foreseeable future,” - Fed Chair Jerome Powell. Maintaining low rates to minimize debt service expense is top of mind with the Fed as we wrote last week and as … Continue reading Powell Just Told Us Why Interest Rates Will Remain Low
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Over the past 11 months and as recently as Tuesday the Federal Reserve has consistently reiterated its mission to get the U.S. Economy back to full employment. We are not there yet. The labor participation rate remains below 2008-2009 financial crisis levels. Let me know your thoughts on the below (particularly if you are on … Continue reading Is The Fed’s View On The Relationship Between Interest Rates and Jobs Wrong?
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
The retail trading crowd views Elon Musk as a populist hero. The reality is Musk is a carnival barker and borderline fraudster in the vein of WeWork founder Adam Neumann. Mr. Musk got off easy under lax former SEC Chairman Jay Clayton. Recall in August 2018 when Musk posted on Twitter that he had secured … Continue reading Elon Musk Is A Carnival Barker At Best, A Criminal At Worst
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
Endless, Nameless. The title of an old Nirvana song which also describes the Fed's position on monetary expansion ("endless") and the Fed's overall monetary strategy ("nameless"). The biggest bubble the world has ever witnessed. Fundamentals are out the window. Former politicians and baseball GM's are leading SPACs. Stock splits lead to material increases in market … Continue reading Endless, Nameless – The Reckless Fed
A well-reasoned, fundamental-based investment process incorporates company-specific analysis combined with industry trends and macro-economic drivers. This approach helps identify valuation "dislocations" which may be leveraged to the upside or downside. However, fundamentals have never mattered less. Investors' collective attention is glued to Washington with one eye squarely focused on the Fed and the other on … Continue reading Will The Fed Purchase Equity ETFs Next?
