Tag: The Federal Reserve

Fed Officials Trading Behavior Is Disappointing, Not Surprising

Fed Officials Trading Behavior Is Disappointing, Not Surprising

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

Leveraging The Fed’s Digital Dollar

Leveraging The Fed’s Digital Dollar

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

A Digital Dollar Is Coming

A Digital Dollar Is Coming

A U.S. CBDC Means Less Privacy for Americans, More Competition for Banks, End of Days for Crypto. (Tickers mentioned: JPM, BAC, WFC) On Thursday Federal Reserve Chairman Jerome Powell made a statement about the Fed's progress in exploring a U.S. CBDC ("Central Bank Digital Currency", see the below video). Powell assured viewers that a U.S. … Continue reading A Digital Dollar Is Coming

The Fed’s Next Move Is To Ramp QE, Not Raise Rates.

The Fed’s Next Move Is To Ramp QE, Not Raise Rates.

We have said it on our TEK2day Podcast and in conversations with some of you that the Fed's next move is to accelerate its QE effort to control long bond yields. This may occur as soon as this month. An interest rate hike is not coming this year in our view. There is far too … Continue reading The Fed’s Next Move Is To Ramp QE, Not Raise Rates.

State-Led Capitalism

State-Led Capitalism

Private markets are no longer primarily determined by the actions of private buyers and sellers. The State now controls private markets as the primary mover. Guessing the timing, scale and duration of massive fiscal and monetary programs has superseded if not largely replaced fundamental analysis. That's not to say that fundamentals do not matter, but … Continue reading State-Led Capitalism

Federal Reserve Discloses Corporate Bond Purchases

Federal Reserve Discloses Corporate Bond Purchases

Here is the full Excel workbook disclosure compiled by the Federal Reserve which lists the various issuers, sectors, cusips, coupons, maturity dates, par values, amortized costs and more for the fixed income securities the Federal Reserve has purchased. Among the securities purchased through June 16th, 48.1% were "AAA, AA and A" rated, 48.3% were "BBB" … Continue reading Federal Reserve Discloses Corporate Bond Purchases

Fed’s Rosengren Anxious To Show He Can Spend With The Best

Fed’s Rosengren Anxious To Show He Can Spend With The Best

No Federal Reserve official is going to balk at the opportunity to print and spend money, expanding upon the Fed's debt-financed portfolio. Federal Reserve Bank of Boston President Eric Rosengren is chomping at the bit to execute the Fed's Main Street Lending Program. The Credit Markets Are Functioning Properly The Fed's emergency stimulus was supposed … Continue reading Fed’s Rosengren Anxious To Show He Can Spend With The Best

This Dove’s Not Crying

This Dove’s Not Crying

Dovish Fed Chair Jerome Powell held day 2 of his semi-annual monetary report to Congress today. To summarize, the Fed's got your back if you are a company of most any size, if you participate in the capital markets, if you are a politician looking for a free lunch, if you desire low interest rates … Continue reading This Dove’s Not Crying

The Forever Bubble-Blowing Fed

The Forever Bubble-Blowing Fed

The Fed's behavior in recent months has been something out of a horror movie. The low interest rate, expansionary monetary policies introduced by former Fed Chair Bernanke and continued by former Fed Chair Yellen have dramatically accelerated under current Fed Chair Powell. Bernanke dealt in $Billions, Chairman Powell prefers $Trillions. Click any of the charts … Continue reading The Forever Bubble-Blowing Fed