39 Burst results for "Reserve Bank"
Fresh "Reserve Bank" from WBZ Afternoon News
"California Cinema chain says it's not going to make it back from Corona virus, its decision to shut down its theaters echoing all the way back to Boston, ArcLight cinemas move means a complex and recently opened in the harbor on Causeway well, instead remained dark. Looking back. The signs may have been there for the 15 screen theater. Which did not reopen when other movie theaters were granted the go ahead to do so. Inflation signals are continuing to heat up we have more from CBS is Jason Brooks. The government's consumer price index for March Rose 2.6% from a year earlier, thanks to a big rising gas prices, which made up half of the overall game. The 6/10 of a percent gain from February was the biggest monthly game since 2012. The core CPI I, which strips out food and gas due to volatility was up a stronger than expected 1.6% Federal Reserve Bank of Boston President Eric Rosengren telling the Newton Needham Chamber of Commerce. The economy is ready to put millions back to work and ready to spend with interest rates remaining at historic lows, Rosencrans comments echoing the sentiments of the Fed chairman, Jerome Powell, CBS's 60 Minutes in which she says the economy is that an inflection point Wall Street with just over a half hour to go to the closing bell, the S and P 500 is up 19 points. It's in record territory. Right now. The NASDAQ's hire 160 points the Dow off its lows, but Not quite there yet still down 28 points straight ahead of the news at 3 30. We will get the very latest on the acting mayor of Boston's determination to release this week Internal affairs reports on a retired police officer who's facing charges it's spring time to taking a breath of fresh savings on appliances at the Home Depot Spring savings event. In store online all season long save a bundle on the Samsung front load platinum washer.
Reconstruction: Australia after COVID
"Australia's economic recovery in the wake of the pandemic. Well we all know. Australia has weathered the pandemic bit of the most nations. It's been five months since the last reported virus related death and several months since any serious community transmission. It's quite extraordinary. Isn't it in coming. Wakes the most vulnerable. Australians will have been vaccinated on april. Nineteen this news. This week there will be reopening of the trans tasman travel route although they remind risks and uncertainties it's fate aside that the pandemic is pretty much forced drawings. But what does all this main for the economy. John edwards is a senior fellow of the lowy institute and a former member of the board. His new book is called reconstruction australia covered. It's published by the low institute. Get i john. Welcome back to the shy unpleasant to be on for the past year. We've been told we face the most terrifying economic conditions for generations yet australia. You think about it. The unemployment rights less than six percent the stock market is within a few percent of its high level and according to the imf this week international monetary fund australia is poised to grow at its fastest pace in twenty two years. It's four point five percent this year. Indeed we are among the world's standout performance in the recovery from last year's covid recession john. What accounts for our economic resilience. Well first of all. I think we handle the health trip. Caught will lettuce. We responded promptly. We put in social distancing. We prepared our health system for a bigger emergency than one. We presumably and australians will comply with the health guam. So that's that's important that we we contained the pandemic tilting but on the economic side. I think we also risk owner will be response in monetary policy the reserve bank and a very big response from fiscal policy treasurer and the morrison government.
Fresh update on "reserve bank" discussed on WBZ Midday News
"Time now for New England business, the U. S economy is said to pack of very powerful punch this year. Federal Reserve Bank of Boston President Eric Rosenberg Rosengren rather tells a new Needham Chamber of commerce that the Economy is ready now to put millions back to work and ready to spend with interest rates remaining at historic lows. Rosencrans comments echoing the sentiments of Fed chairman Jerome Powell's comments to CBS's 60 Minutes in which he said the economy is now at an inflection point decision day could be any day now for Vineyard wins, plans to build the nation's first utility scale offshore wind farm the on again off again negotiations with the federal government. Could likely end with an approval, a rejection or a request for more information. Several years after first pitching the plans and ideas, that project has been delayed, killed, then revived again and, if approved, construction could likely begin later this year and delivering green Energy by the end of the year. 2023 Cape Cod's latest real estate numbers are out and they continue a very promising trend. No signs of cooling in the Kit Kat real estate market. That's according to Barnstable County Register of Deeds. Jack needs latest report. The volume and value of sales rose again in March of this year, with the volume up 11% over March of 2020. The total value of all sales rose 49% over the same period last year, The median sales value was up just over 15%. The median sales value for real estate on the Cape is now $470,000. In March of 2020. It was 406,000 from the Cape Cod bureau. Rob ordered WBZ Boston's news radio. Also, all the cave lane closures went into effect yesterday Monday on the Sagamore Bridge. The U. S Army Corps of Engineers is conducting maintenance on the bridge is structural steel support system and also making sure the bridges well lit. They're aiming to wrap the work up before Memorial Day weekend. The federal government announcing this month it will help cover the funeral costs for people who have lost loved ones to the pandemic. WBZ TV spill Shields tells us A program is helping one local woman, Marge, Connie Medeiros, lost her father, then her husband to covet. One week apart the.
How consumers are using their latest relief checks
"To have you with us. The Federal Reserve Bank of New York is out with a new study today, looking at how people are spending or not spending their pandemic relief checks. So far, most are using the money to pay off debt or saving it. Not exactly the economic stimulus. Many are hoping for marketplaces Nancy Marshall Ganz or has more on why people are holding back on spending. The New York Fed says the consumers it surveyed who've already received their third relief checks are hanging on to the money just like they did with the 1st and 2nd relief payments. The Fed report says. Consumers are only planning to spend a quarter of the most recent check, and most of that will go toward essentials. We were savers Jason Calas are is an eighth grade teacher. He, his wife and teenage son lived near Los Angeles. He says. In the before times they go out to eat once or twice a month. But they won't be using any their stimulus money for that. In fact, he doesn't think they'll set foot in a restaurant until next year. We spent the lad better part of 13 months used, avoiding indoors and people are strangers. And then it would just be a big hurdle to get over. Salazar says they might reconsider once they're all vaccinated. Kathy Bostjancic, an economist at Oxford Economics, says a lot of other consumers feel the same way. The confidence to go out and spend on services is is very directly related to the progress we're making on the vaccinations. Question Sick thinks will make enough progress for consumer spending to jump about 3.5% over the next few months. Other economists, like Joseph Minarik of the Conference board aren't quite so optimistic. The people who worked in hotels or in transportation We're getting up to full capacity is going to take some time. Those folks are going to continue toe hold back in terms of their spending, Min Eric says. Even some people who do have jobs are worried They'll get a pink slip and economic growth won't recover without them, since roughly 70% of the U. S economy
Fresh update on "reserve bank" discussed on Bloomberg Surveillance
"Frumpy Jim thought leaders. Here's Lisa Davis Impact investing portfolio manager at P. Jem real estate. I think we used to believe in the SDU circles that climate change was the great systemic risk to financial markets that we needed to find a way to account for. And the challenge was to connect the individual investments that we were making to addressing climate risk at a systemic level. I think the challenge now that I see is that inequality around the globe is equally important, systemic risk often connected to climate risk that we have to address in financial markets. Hear more peach and perspectives at p jem dot com That's PG I am calm Partner with peach in the investment management business of Prudential. These statements are not intended to be investment advice and should not be used as the basis for any investment decision. Influential conversations from Bloomberg Television. Here's Ana Edwards. Let's talk to Valentina van you and housing and in investment partners CI Oh, joins us this morning balloting. Investment perspective. This partial reopening of the UK hospitality and retail sex is clearly a very welcome sign for those watching the role after vaccines and indeed, the the economic story here for Europe. Is this all pricing, though, Or is there still further to run in the undervaluation of UK assets that we hear about from some of our guests? I do feel that the re opening now in the UK, probably later in towards summer in Europe. Will provide quite a significant boost to the economy and therefore probably gets the recovery and also the overall tone in markets and other areas. Support. How would you expect UK equity markets to perform in relation to European peers to global piers? What is not really, however, is that U K market footsie so far all girl rising and nicely this year. Is leading the European equity markets. So there is an element there where maybe the currency place roll. Sterling has strengthened the Lord. So that is maybe a bit off a headwind compared to some of the other equity markets. But all in all, I think the outlook for You guess it Z certainly good in this cyclical recovery here. Background here. More conversations like this one on Bloomberg Television streaming live on Bloomberg dot com on on the Bloomberg mobile APP or check your local cable listings. Change in policy is well motivated risk is that the Fed will be late. They're not even gonna start to tighten monetary policy until they're at full employment, inflation that 2% and they expect inflation move higher, so The Fed's going much slower to taking this regime and prayer regimes that does create some risk for the common. We'll talk about those rest. In just a moment. That was William Townsley, the former Federal Reserve Bank of New York president from New York City this morning. Good morning alongside some King Lisa branded Sam Jonathan Farrow. We are 12 minutes away from.
Federal Reserve Bank of Philadelphia president on effect of pandemic on employees
"Indicates many workers are ready to give up their paycheck and say I'm out of here I quit. A Microsoft survey of global workers finds the majority feel they're struggling or just surviving and pandemic work conditions and a large percentage you're considering leaving their employer this year. Same survey shows. Most business leaders feel the employees of thriving Federal Reserve Bank of Philadelphia President Patrick Harker says the problem is obvious. Workers want a feel like they're valued and that they're rewarded for their work. 46% of respondents say they're planning to move to a new location this year, a reflection of the greater flexibility to work from home. 41% say they're mulling leaving their jobs. JP Morgan boss Jamie Diamond says a lot of the problem is remote work, so it's hard to think okay, culture and character and all those things When you have the zoom world, 18 to 25 year olds are faring the worst. Researchers theorize their feelings of isolation or higher because they're more likely to be early in their careers in single, Quite Jared
Fresh "Reserve Bank" from WBZ Morning News
"Take a look over there and it's just what you want to do. It's in framing. Them there, and shelter is still tap root. Three south down from 4 95 to trouble Cove Road. Lori granted WBC's traffic on the three we checked the four day WBZ Jackie Weather forecast Now, here's meteorologist Brian Thompson. And Jeff, we're gonna see clouds break for some sunshine of the course of the morning should have a fixed set of clouds through the afternoon will be breezy at times high temperatures today ranging from near 50 at the coast to Ah, 60 or even a bit better in some Western suburbs, the one to be out of the East Northeast today, So that's what's going to keep things that the Coast little chillier. It's and I partly to mostly cloudy, low 47. Intervals of clouds and sunshine tomorrow temperature wise, the very similar to today High 52 of the coast. Low it low sixties. Many inland spots turning out cloudy and breezy Thursday will be a chilly day with a little bit of rain around mainly late in the day and at nights Thursdays High 51 brisk and quite chilly Friday with rain much of the time and high Friday only 46 thank you with a real field sections with the wind. We'll only be in the thirties. I thank you with meteorologist Brian Thompson WBZ Boston's NewsRadio Little Bit of Blue here in Boston. Right now it's now. 47 degrees. Good morning. 7 26 a look at New England business this morning. U. S economy has stepped UP to pack A powerful punch this year, Federal Reserve Bank of Boston President Eric Rosengren tells the Newton Needham Chamber of Commerce that the economy is ready to put millions back to work and ready to spend with interest rates remaining at historic lows. Rosen. Gran's comments echo the sentiments of Fed Chairman Jerome Powell's comments to CBS's 60 Minutes in which he says the economy is at an inflection point. Decision. Day could be any day now for vineyard winds plans to build the nation's first utility scale offshore wind farm The on again off again. Negotiations with the federal government could end with an approval or rejection or request for more information mix of sun and clouds. In Boston today, right now, little bit of sunshine get into the fifties and sixties. Coming up on WBC news Radio. Big Setback for Coben Vaccines. Ah, one shot solution now on hold Massachusetts could get halfway to herd immunity later on this week and a half attack on the registry. Governor Baker says someone is gonna pay details coming off its 7 27.
If You Sell Your Bitcoin, Michael Saylor and Jack Dorsey WILL Buy It
"Before powell spoke investors had started to get nervous in the us around the potential for an early unwinding of the fed's extremely aggressive approach to keeping rates low and stimulus etc. Because of this the market was getting out of stocks and into treasuries driving the yield of treasuries down and by the way if that sounded like greek to you. We're actually going to do a macro one show. And a bond specific show as part of that new kiddo show set as well either way powell gave testimony to the us senate banking committee on tuesday and said that the economic recovery remains uneven and far from complete and the path ahead is highly uncertain the bloomberg headline this morning about it said powell reiterates view that labor market has a long way to go. Pow pointed out that there are ten million fewer people employed. And that's a long way to go to maximum employment and this is really important the mandate the fed is actually two parts market stability. But it's also full employment the tools however that they have to achieve that full employment are limited and what we've seen is that asset prices tend to benefit before full employment is reached over the course of this year. We're likely to shift from the market stability part of that equation to the full employment part of that equation but it still promises a pretty aggressive approach from the fed powell also mentioned digital currencies saying it's a priority and that they'll be reaching out to congress about it in twenty twenty one so we'll have to come back to that soon next up on the brief today trouble in arc land i have discussed kathy would and arc pretty frequently here most recently in the episode last week i find it interesting. How a lot of the macro dynamics that are potentially interacting with bitcoin might be interacting with arc funds as well arc has seen a stratospheric rise over the last year but has been hammered. The past few days in fact it started a couple weeks ago as people started to get nervous about how concentrated arcs of some of their companies were remember. Our funds have specific feces around innovation. So there are frankly. Only so many companies they can buy if their fund owns to high percentage of those companies. The fear goes it could create risk in both directions that an issue in one company could create broader risk for arc or vice versa that arc could create new exhaustiveness risk for the companies themselves over the past few days however the concern has been less about that and more about this rise in treasury yields the innovation. Etf which is their flagship. Fell three sessions in a row. It had its worst today. Drops in september and again basically these yields were reflective as we just discussed of investors thinking that there was going to be pressure for rates to rise and for fed support on wind earlier than expected because of that they were moving out of the pricier parts of the market. I e tak. Now for her part. Kathy would said she wasn't worried said that she welcomed the correction and to be fair. She's gone from three billion assets under management in january twenty twenty two more than thirty in january twenty twenty one to more than sixty billion last week still. I think this is worth watching as a reflection of the bleeding edge of the markets. I don't think. Bitcoin is so correllated that you can watch these things move in tandem. But i do believe that. There's some proxy for how traditional investors might think about bitcoin at any given time based on the macro context lasts up on the today. Let's talk about the latest out of india. India as we've discussed has been very aggressive. Vis-a-vis crypto currencies with that seeming to only heightening right now a couple updates from the last few days rakesh ginger who's likened to an indian warren buffett. The billionaire investor he told. Cnbc never buy bitcoin that. Regulators should step in and ban cryptos in india and called bitcoin speculation of the highest order. So pretty much that. Warren buffett description is accurate at least when it comes to opinions on bitcoin at the same time however he also stated that india should focus on the creation of an official digital rupee. This was echoed by comments of reserve bank of india governor who reiterated that. The rbi has major concerns around cryptos but that they are working aggressively on a digital rupee. I wanted to point this out. Because i think it shows just how much india is going to really draw. This contrast between killing cryptos private cryptos and network cryptos while simultaneously trying to harness that momentum for an official central bank digital currency is that paradigm. That one can't survive while the other one does or are there different ways to look at
The Dollar Privilege
"Federal reserve is taking sweeping him trying to protect the economy from the corona virus. Fed chairman jerome. Powell announced interest rates will be drastically in one of the biggest bet moves since two thousand eight financial crisis in china has a huge vested interest in the american economy because it holds them almost twenty five percent of all four. No us us sanctions against iran over nuclear program were reintroduced iran's economies in freefall soaring inflation and push comes to shove all the world's reserve currency to start off what is a reserve currency. And why does it matter. So i think the first thing is to explain what a currency is before we get to reserve currency. This is sebastian. Mallaby a senior fellow for international economics at the council. You may remember him from our episode on the economic side of the kovic. Pandemic currency has a few different uses. One is that it's a unit of account. It's a way of putting a measure on what something might be worth. The second is once you've decided what it's worth that you should be able to transact transactions are the second idea that you can go buy stuff with the currency and a third idea is that you can use money as a store of value before you transact you can save up this currency and then transaction the future so for those keeping track at home money does three basic things. It lets us agree on prices. It lets us by things and it lets us save up so we can buy other things later now. The same three things that currency does for people reserve currencies do for entire countries pricing buying and saving so neutrally a reserve currency is the cars you hold in reserve s. So it's very linked to the last idea. I mentioned of a store of value and in particular we think of reserve banks central banks global central banks which hose currencies in reserve to protect their economies against there is kinds of financial or economic shock so a reserve currency really has a couple of different functions. One is to cover the need for future imports. If a country for example doesn't have its own energy. Supply needs to import oil. You might want to hold donaldson reserved to make sure that you can buy oil. You need in the future. The second reason central banks hold foreign currency reserves is because of the possibility of a financial crisis. And there again don't as a very useful because most institutions borrowing donna's so in a financial crisis they gonna need donna's to help them pay for fan. Central banks have the unique power to print money but in many other ways they're kind of like a scaled up version of an ordinary bank. Your local bank needs to have enough money to lend to people if they want to buy a home or if things get bad and they need to take some out a central bank needs to be able to do this to but for an entire country in order to be prepared for the future. They need to store up a significant amount of cash that they can trust. Foreign currencies are often a safer bet than a local currency especially in countries with weak or unstable economies. The safest bet of all is the us dollar. What role does the. Us dollars serve in the global reserve system. Will your stone. Now is the largest single reserve. Currency economists estimate that approximately sixty percent of foreign reserves around the world are in us dollars. This is roger ferguson. He is the president and ceo of ti which manages over one trillion in retirement funds for more than five million teachers government workers and well me turns out. Roger was also vice chairman of the board of governors of the federal reserve from nineteen ninety nine to two thousand six. This means he helped determine the supply of us dollars to the country and the world. The euro is about twenty percent the yen. The japanese currency is about five or six percent of british pound also about five or six percent until the us by way of the most important reserve currency. But it's not the only currency it's held in reserve by other economies. The chinese i think would like to see their currency. The renminbi become a larger currency in terms of its holdings as a reserve currency around the world than yet out in terms of reserves. They number four number five. When listed only about two percent. I can definitely remember going to europe at a time. When the euro was way up in my money didn't go as far and you're like damn i time. This really poorly are other countries literally buying dollars the way that i exchange currency when i visit a country. And where do they buy them from. It's not quite the same because they're not collecting lots of five dollar bills to put into a wallet in their belt. They're holding huge amounts and said what they do. is they earn. Us treasury bombs or other kinds of easily traded dollar denominated guns and that could be mortgage bonds as well but you know. Us government debts the most popular instrument to
Some Black-Owned Businesses Are Turning To New Banks For Paycheck Protection Loans
"To help keep workers on payrolls. Businesses owned by black and Latino people were often at the back of the line. Those firms often had to wait longer for money, even though many were desperate for financial help. With a new round of business loans in the pipeline. Authorities are now trying to address that disparity as NPR's Scott Horsley reports like a lot of business sellers. Jennifer Kelly's income took a hit last year when the pandemic struck. She's a clinical psychologist near Atlanta, and some of her clients didn't make the adjustment to online or telephone counseling. Kelly, who has two employees applied to her regular bank for a loan under the federal government's Paycheck protection program. But she says the process was frustrating. It's kind of like trying to get the vaccine. They put my name on the list. And there they finally said, Oh, we all have anymore, And we're sorry that first round of P P p loans was exhausted In less than two weeks. Lots of businesses complained that banks were prioritizing their biggest customers. Bones were especially hard to come by in neighborhoods with a lot of black and brown residents When I needed them. They were not available to man, including. I'm not the big business, but I'm a small business and committed like with the fabric of America. When Congress okayed a second round of P P p loans last year, Kelly applied again. This time through a bank 250 miles away in Savannah, Georgia that specializes in working with black own firms. They were very patient through that entire process, and I didn't get approved for the loan, and I do hope that, especially in the small black banks will survive because We need to have those institutions that second bank Kelly worked with. Carver State Bank was founded 94 years ago with the goal of building financial freedom for its African American customers. 80% of its loans go to black owned businesses. Robert James, who sits on the bank's board, says he received P P p applications from around the country most looking for less than $50,000. Most of our applications are very small businesses individually owned gas station in the neighborhood or restaurants are people deserve a lot of credit for the hard work that they're putting in just to make sure that we get help to the customers that need it. The most According to the Federal Reserve Bank of New York. Even before the pandemic, black owned businesses were more than twice as likely beyond shaky financial footing as white owned firms. CEO Janine Jake Oak of the Community Development Bankers Association, says that means the extra time it took for loans to reach those businesses could be costly. They had a lot less cushion to start with, which made them much more vulnerable when the economy went south. Authorities have tried to address the disparity in P P p lending in a number of ways. First they've made more money available. They also gave banks that specialize in minority and low income communities, a head start when the latest round of paycheck protection loans was launched last month. Finally, while the loans were designed to be forgiven, some black borrowers are suspicious, a legacy of the long history of discriminatory lending. So education is also important. Carver States, James says he tried to reassure African American borrowers they can use P p p loans to keep their businesses and communities afloat. I've heard a lot of stories of customers who were eligible for these funds, but didn't trust that there wouldn't be some sort of a catch. Craig Gordon runs a company that provides in home nursing care in Georgia about 30% of his business is on hold right now because many of his customers are wary of letting anyone even a skilled nurse into their home during the pandemic. With Carver States help Gordon's just been approved for a second p p. P loan. This will buy us probably three of four months, and I'm hoping that all of those vulnerable folks that we served by again will be well vaccinated. In the meantime, cordon says the forgivable loan will help him keep dozens of people on the payroll. Scott Horsley. NPR NEWS Washington
New Zealand central bank says data system hacked
"The Central Bank of New Zealand says one of its data systems has been breached by an unidentified hacker who potentially access commercially and personally sensitive information. The Reserve Bank of New Zealand says in a statement. A third party file sharing service that uses to share and store sensitive information was illegally accessed. Authorities say the breach has been contained. And the banks, core functions or sound and operational.
New GDP Numbers Won't Be Enough To Repair All Economic Damage
"We the are expecting news this morning that the US economy grew at a record pace during the last three months not many people are popping champagne corks though this is because the economy also shrank at a record pace in the three months before that, even the strong rebound in July August September is not enough to repair the damage done by the pandemic earlier this spring, we have NPR's Scott horsely with morning Scott Good Morning David. So what is this morning's report going to tell us about how the economy's doing? It's a snapshot of an economy that has balanced partway back from the depths of the pandemic recession. We know that unemployment's dropped is now just below eight percent and while that's still more than twice as high as it was before the pandemic, it's a lot better than a lot of people for were expecting the we're gonNA see by this time of the year we don't yet know exactly what the Commerce Department will say about GDP, but we do expect it to show a record level of growth in the most recent quarter. And the president has already touting that at campaign rallies as evidence of what he calls a v-shaped recovery having a super V it's called nobody even thought we are doing numbers and where do you see that number? GDP I don't know what it is. The Fed said it may be a thirty five percent increase in GDP in fact, the forecast from Federal Reserve Bank of Atlanta is even better than that they're projecting annualized GDP growth of about thirty seven percent. But a caveat David that headline number is kind of exaggerated. Explain to me why we think that that's an exaggeration. Will the government routinely reports these quarterly shifts GDP as if they were sustained for a full year which makes both the downturn in the spring and the rebound in the summer look bigger than they were and they were. Plenty big to start with in the spring. For example, the Commerce Department said the economy shrank at an annualized rate of about thirty one percent. What that means is if the slide had gone on for a whole year, we would've wound up with an economy thirty, one percent smaller. But of course, it didn't go on for a full year the downturn was really Sharp, but it only lasted a couple of months and likewise the growth spurt we saw this summer is not likely to be maintained Narain vish WHO's chief economist at IHS market says a lot of the growth was actually front loaded in the early part of the year and the result and was the result of a lot of pent up demand when businesses reopened. If you pull back on a rubber band and like Oh, it's going to snap back but then it Kinda goes limp act. Certainly, the fourth quarter and maybe early next year will be pretty weak growth and that's especially true as the corona virus rears its head again and we've seen a sharp selloff in anticipation of that in the stock market. This week of the Dow dropped more than nine hundred points just yesterday.
Federal Reserve Bank of Atlanta's Bostic cautions that US economic recovery is very uneven
"Of the Federal Reserve Bank of Atlantis as he's worried about some parts of the nation's economic recovery on CBS's face, the nation, Raphael Bostic cited the ongoing struggles for hotels, for example, is also concerned about small businesses and low income and minority areas. But he acknowledged other sectors of the economy are seeing a rebound. Wall Street
Atlanta Fed CEO Bostic cautions that US economic recovery is very uneven
"The president and CEO of the Federal Reserve Bank of Atlanta says he's worried about some parts of the nation's economic recovery. On CBS's face. The Nation, Raphael Bostic cited the ongoing struggles for hotels. Bostic is also concerned about small businesses in low income and minority areas. However, Bostic acknowledged other sectors of the economy or seeing a big
Has Scott Morrison spent too much?
"Me. If you've already heard me mention this but one of my favorite quotes during the covid crosses a pdf the guardian. This is the British lift wing newspaper. Now, this was the heart of the coronavirus crisis. It would have been light much quote just as there are no atheists on a sinking ship, there are no free marketeers during a pandemic. Now, the author of that apt quote Jonathan Freedland, he was referring to the audio logical revolution within the British conservative. Party. Now, according to Freedland Boris Johnson's his have defied four decades of thatcherism small-state free-market, thinking I to spend staggering amounts of money and then subsidizing the wages of workers. Could the same thing be said about Australia's Liberal Party they're the party of Howard and Costello now embraces big-spending high deficit government interventionism. And is a permanent state of affairs poor kilis editor at large of the Australian US pipe and Judas Brit is emeritus professor of politics at Latrobe University poll judy welcome back to the show. Hristo Paul, you've written to calms about this subject in the past week, summarize your faces. Will Martha is that all parties and all governments have to respond to the times in which they find themselves on display in Australia. Now we face an extraordinary economic crisis and the response reveals the nature of Scott Morrison, his prime minister and the Mars and government. So Morrison, not responding as Liberal Party progressive or is it Liberal Party conservative? He doesn't see himself in those terms his responses pragmatic selects able and practical. He's not inhibited by former policy and audio logical icons of the Liberal Party. Say What we say is the government has abandoned the long-term syllabus aspirations. It's A. Big Spending government it's a government government intervention focused on Keynesian demand management. It does however on the Liberal Party tradition of tax cuts will see next week. So it's prepared to regulate or deregulate according to the situation according to what's required. So to sum up say that Morrison wants to be defined by results and outcomes not philosophical principle. Okay. You mentioned the tax cuts leaving that aside traditional liberal governments are about balancing the books Paul, how much an as do you think aries in the Liberal Party about in the parliament and outside about these handouts to preserve jobs and livelihoods? Are. I. Don't think there's much on these at all OPTIMA and Tom. and. A couple of reasons for this if there is to be on, he's He's will come through the down the track, but essentially what's happening here is to govern is following the Orthodoxy or what you might call the new Orthodoxy in terms of meeting the financial and economic crisis. So roller response is sort of radical. It's also conventional. The official family is working together very closely. The Treasury the Reserve Bank, what the government is doing is essentially supported by private-sector economists. It's in law and with Patrick amended by the VCD and the IMF not the cabinet is very nodded, the Prime Minister and the treasurer are working very closely together so far the results look good. I think the Overwhelming sentiment on the back benches. Support, the government strategy in the hope that this gives individual employees, the chance of actually being reelected and my will give the government the chance of being reelected. So the reinvention of Australian liberalism is on full display with this budget judith break you agree with Paul Kelly about the the audio logical significance of these changes but actually think the government had much choice in that sense I do think we can see something audio logical preferences in a couple of the policies poor mentioned the tax cuts they've chosen tax cuts over for example, committing to a permanent increase in new act now co Job Seca. They've also, for example, if we look at the way, they wanted to stimulate the housing market. They've gone for giving money to individual owners rather than, for example, embarking on a social housing project. So I think in some of the means, we can still see some of the ideological preferences of the Patty. One of the things I've wondered when I've been watching the events unfold. If Labor had won the last election was in government with the Liberals have supported the same levels of spending or would they have if you like stayed in the sort of ideological bunker bean and attacked the blow out of the deficit? I mean, it's a hypothetical. In some ways I think we've been very lucky that it's been the liberals and the coalition in government because they can sense being able to Ghana much more support. I, think than I have been able to do for the same levels of spending but isn't cameras response to the COVID crosses more consistent with other Western governments during the pandemic Judy. Yes that's what I think. I had much option but the question is if the coalition of being opposition, would they have supported a Labor government going? You've written a lot about this have many many decades about when orthodoxies or overturned. It's usually bipartisan is that you'll since if the coalition cypher argument's sake wherein opposition I would have gone along with this big spending interventionism. Look are essentially agree with what Judy's said about this I think in a sense we're. Fortunate, if you liked that the coalition's in government because it's taken all the big spending decisions. and. Lay has been prepared to go along with back. In fact, it's argued that there should be even more spending. So in that sense, we've had a broad degree of thought-out ship within the economic framework. It is hot the typical of course to tron speculate about what would have happened if alive had been in office doing this but I do think that the coalition in opposition would have been tempted to make caught a lot of criticisms and to suggest that the spending had gone too far. There's a big difference for party thing in government managing across and being an opposition. Cape with this theme of a political realignment among center right parties around the Western world. If you think about Donald Trump in two thousand sixteen, he tapped into widespread anxieties. America's rust belt. What can class constituencies? Boris Johnson showed last December, he resonated with traditional British Library voters in the Midlands and northern England. Judy. Do you think that Morrison in a wise doing the same thing here in Australia? Now, I think they're very different sorts of crises. I mean the pandemic is an external. Crisis, it's not being caused by politics in any way it's not back nationalism versus globalism or any of those things, and so I don't agree with that. I agree with what Paul was saying earlier that Morrison's shown himself to be pragmatic and quick footed in this and I think we're lucky for that. But I I don't think that this lines up with bricks and with trump's appeal to the rest spilled poor Kelly. Well I think conservatism is changing if you look at. America Britain Australia and there's not a dopey getting very significant changes into servitude. Thought. Different changes argued very strongly that there are very substantial differences between Donald Trump and Scott Morrison. I think people who argue that. Morrison is a pilot version of DONALD TRUMP MAUREEN DOWD in the New York Times by the way, but go on. I think. I think turned him mentally misunderstand the situation I. Think the change in conservatism is very dramatic in the United States. If you'd like because we've got the transition from Ronald, Reagan who a generation ago was the great conservative champion, and now we have Donald Trump, who if you lock is a populist conservative? And that transformation is simply enormous install ending content I mean trump violates all the virtues of conservatism in terms of restraint prudence disciplined respect. Regard for the political system, he thrives on division. So he likes all the traditional conservative norms, and then when looks at his policies. Well he's sabotage the global trading system. He's an arch protectionist. He's engaged in this trade war with China he's appraised dictators and suspicious about. So I guess one of the Fundamental Christians here is the extent to which trump is an aberration. And the extent to which post trump American concert is we'll have to try and create a new position cognisant of the damage that trump has done to the traditional Republican Party
Where is everyone driving?
"I recently saw a graph showing astounding rebound and gasoline demand returning almost a pre Kobe levels after a forty percent drop in April I just want to stop in the middle of this because I love it. So much I recently saw graph is not sentence like that is not the way that most people start sentences but here the indicator. So many sentences with I recently. Graph and we awesome you're like we've got to take this question whatever comes next we're in that's the indicator tuna. ANYWAYS, here's the rest of Jeff's question about why demand for gasoline is recovered so much after that huge drop in April with so many office workers still working from home many schools still online and airline demand way down how can this be anecdotally the roads do seem more crowded where's earlier going thanks thanks Jeff. So the most recent data we have shows that total vehicle miles traveled on roads and. Streets. So that's cars and trucks in July that was about eleven percent lower than the vehicle miles traveled in July of last year. So driving is still way down but jeff is right. That's nowhere close to the forty percent down that it was an April people are driving more than they were in the months right after the pandemic. So okay I mean as jeff put it like here's everybody going. We can't know where everybody's going, but we do have this one big clue with simply that more people are commuting to work again in May still early in the pandemic forty, eight percent of workers were commuting to work at least one day a week. But as the economy many places reopened and millions of people who lost their jobs were rehired by August it was back up to sixty four percent of people were commuting. That's all according to a monthly survey by the Federal Reserve Bank of Dallas and also it is. Definitely true that there are more people working from home every day now than before Cova two and a half times more in fact but that same survey found that even now it's still only about twenty percent of workers. Now, that's a lot but it is still way fewer than the sheriff workers who commute to a workplace each week. So we can't say for sure where everybody's driving these days but we suspected a big part of the answer is to work people are driving to work. That's where everyone's going to work.
Governor Greg Abbott Blasts Dallas City Council For Defunding Police
"Abbott calls the Dallas City Council's decision to reallocate $7 million from police overtime pay. A perfect example of de funding. Police. The Federal Reserve Bank of Dallas predicts continued growth in the Texas economy as the state slowly recovers from the financial impacts of the Corona virus pandemic. Dallas Fed Vice president Pia or any OUS says the pandemic brings positive and negative risks and include a possible resurgence of the virus and prolonged low old prices and upside risk is the arrival of a safe and effective covered 19 vaccine, according to the Dallas Feds. Latest Texas ECONOMIC Report. Texas Economic growth has picked up with the decline of new covert 19 cases since July.
Did ETFs Pass the 2020 Market Collapse Stress Test
"There's a paper issued by the Federal Reserve Bank of Boston titled The shift from Active to passive investing potential risks to financial stability. They right to the extent that passive investing is pushing up the prices of index constituents. Two types of potential repercussions for financial stability might arise. I in theory, rising prices can lead to more index investing and the resulting index bubble eventually could burst. But they point out that this might not be the entire market but could be just elements in the market some stocks getting pushed up. While others might have their prices fall because they're not necessarily included in the index. Investors were selling active mutual funds and going in to index funds to the overall market valuation wasn't necessarily going higher. The point out that some stocks will because they are part of that basket that an ETF holds might be more liquid whereas other names are going to be less liquid. So you have different things going on that makes it challenging to figure out whether there is or was an indexing bubble Needed is a stress test. We needed people rushing to get out of ATS and other assets and to see how they hold up. One of the concerns regarding ETF, there would be a flash crash which has occurred in the past where the price of an ETF has fallen dramatically more so than the price of its underlying holdings. And this can occur when there are trading halts in either the ETF or the underlying holdings. These trading halt or circuit breakers that are implemented if the price of security ETF falls below some threshold. And they're there to suppress volatility. Do allow traders time to catch their breaths or trading systems time to recalibrate to timeout. The stress has is very, very important because ETF's are so much bigger than they were. Six trillion dollars in assets in the ETF sector that's up seven fold from two, thousand seven. So. What happened during late February and March as market sold off dramatically. Well I there was no flash crash trading volume, definitely spite. I shares shared some data for the week of February twenty. Fourth Two thousand twenty volatility spikes so the vix, the C. B. O. E. volatility index, it reached forty nine. The highest since February twenty eighteen. and. The S&P five hundred had its largest weekly decline since the two thousand eight global financial crisis. Exchange traded products that week comprise thirty, eight percent of market trading. Whereas back in twenty nineteen, they accounted on average for twenty seven percent. So there was much more trading in ats. Exchange. For the products which include ATS. Traded a record one point, four, trillion dollars volume from February twenty, four, th through February twenty, eighth, two, hundred and seventy percent greater than its average daily trading volume from the prior month. And then that trading was fairly efficient. So the bid ask spreads what investors were buying ETF for or selling e Utah. That price difference was generally line with historical averages in addition, most of the trading volume was trading in the secondary market. Investors trading the ATS with each other, rather than trading facilitated by authorized participants who interact directly with ETF sponsored in creating and redeeming shares. The volume of secondary market trading in exchange traded products was fourteen to one relative to primary activity of this trading with authorized participants. What that means is that ETF in some ways acted as shock absorber when investors were trying to get out even if the underlying securities might have been less liquid by selling ETF's taking much of that trading volume that put less pressure on perhaps some of those less liquid securities. It seemed to function. If we look at what happened during the this market twenty, twenty turmoil compared to the flash crash of two thousand, ten volatility was actually much higher during the march twenty, twenty turmoil. The minimum and maximum levels during a given day for the various indices was higher during March twenty twenty then back in the flash crash twenty ten. And yet the markets seem to function generally speaking at least for equity ETF's. Even. Michael. Berry in March twenty twenty seemed to admit this. He told Bloomberg I have a significant bearish market bat that is working out for now. A global pandemic is absolutely potential trigger for the unwinding of the passive investing bubble. But despite volatility Berry said, he hadn't noticed any signs of dysfunction in the markets that was making it harder for him, the trade or exploit investment opportunities. Equity ETF seems to have passed that stress test it worked even though the volume of trading was so much higher. The number of ATS was so much higher. There were some challenges on the bond side. The vanguard total bond market ETF. B, n De on March Twelfth, it's closing price was six point two percent less than its net asset value per share. The price was less than the supposed value of the underlying holdings on a per share basis. During the prior thirteen years that have had a point one, seven percent premium of the closing price to envy now at six point, two percent discount. Rich powers WHO'S HEAD OF ETF product management at Vanguard said this wasn't unusual. Market prices for Egypt's can move more rapidly than the net asset value that is part of the price discovery process. He's saying that's normal.
Did ETFs Pass the 2020 Market Collapse Stress Test?
"A paper issued by the Federal Reserve Bank of Boston titled The shift from Active to passive investing potential risks to financial stability. They right to the extent that passive investing is pushing up the prices of index constituents. Two types of potential repercussions for financial stability might arise. I in theory, rising prices can lead to more index investing and the resulting index bubble eventually could burst. But they point out that this might not be the entire market but could be just elements in the market some stocks getting pushed up. While others might have their prices fall because they're not necessarily included in the index. Investors were selling active mutual funds and going in to index funds to the overall market valuation wasn't necessarily going higher. The point out that some stocks will because they are part of that basket that an ETF holds might be more liquid whereas other names are going to be less liquid. So you have different things going on that makes it challenging to figure out whether there is or was an indexing bubble Needed is a stress test. We needed people rushing to get out of ATS and other assets and to see how they hold up. One of the concerns regarding ETF, there would be a flash crash which has occurred in the past where the price of an ETF has fallen dramatically more so than the price of its underlying holdings. And this can occur when there are trading halts in either the ETF or the underlying holdings. These trading halt or circuit breakers that are implemented if the price of security ETF falls below some threshold. And they're there to suppress volatility. Do allow traders time to catch their breaths or trading systems time to recalibrate to timeout. The stress has is very, very important because ETF's are so much bigger than they were. Six trillion dollars in assets in the ETF sector that's up seven fold from two, thousand seven. So. What happened during late February and March as market sold off dramatically. Well I there was no flash crash trading volume, definitely spite. I shares shared some data for the week of February twenty. Fourth Two thousand twenty volatility spikes so the vix, the C. B. O. E. volatility index, it reached forty nine. The highest since February twenty eighteen. and. The S&P five hundred had its largest weekly decline since the two thousand eight global financial crisis. Exchange traded products that week comprise thirty, eight percent of market trading. Whereas back in twenty nineteen, they accounted on average for twenty seven percent. So there was much more trading in ats. Exchange. For the products which include ATS. Traded a record one point, four, trillion dollars volume from February twenty, four, th through February twenty, eighth, two, hundred and seventy percent greater than its average daily trading volume from the prior month. And then that trading was fairly efficient. So the bid ask spreads what investors were buying ETF for or selling e Utah. That price difference was generally line with historical averages in addition, most of the trading volume was trading in the secondary market. Investors trading the ATS with each other, rather than trading facilitated by authorized participants who interact directly with ETF sponsored in creating and redeeming shares. The volume of secondary market trading in exchange traded products was fourteen to one relative to primary activity of this trading with authorized participants. What that means is that ETF in some ways acted as shock absorber when investors were trying to get out even if the underlying securities might have been less liquid by selling ETF's taking much of that trading volume that put less pressure on perhaps some of those less liquid securities. It seemed to function. If we look at what happened during the this market twenty, twenty turmoil compared to the flash crash of two thousand, ten volatility was actually much higher during the march twenty, twenty turmoil.
Boston Fed chief: States' rush to reopen slowed US recovery
"A Federal Reserve Bank president is criticizing decisions many states meet this spring to re open businesses before getting the corona virus fully under control Eric Rosengren says states in the south and west that allow businesses to re open after just brief shutdowns did register an initial burst of economic activity but spikes in infection rates soon followed in the Federal Reserve Bank of Boston president says those states economies are now lagging behind the northeast with consumers more cautious in bars and restaurants needing to shut down again Rosengren says limited or inconsistent efforts by states to control the virus based on public health guidance are not only placing citizens at unnecessary risk of severe illness and possible death but are also likely to prolong the economic downturn Ben Thomas Washington
Boston Fed chief: States' rush to reopen slowed US recovery
"A Federal Reserve Bank president is criticizing decisions many states meet this spring to re open businesses before getting the corona virus fully under control Eric Rosengren says states in the south and west that allow businesses to re open after just brief shutdowns did register an initial burst of economic activity but spikes in infection rates soon followed in the Federal Reserve Bank of Boston president says those states economies are now lagging behind the northeast with consumers more cautious in bars and restaurants needing to shut down again Rosengren says limited or inconsistent efforts by states to control the virus based on public health guidance are not only placing citizens at unnecessary risk of severe illness and possible death but are also likely to prolong the economic downturn Ben Thomas Washington
Sorry Crypto Maximalists, But QE Is NOT The Devil - Alex Blum from Two Prime
"So topic number one. qe Is not the devil, right so Wednesday teasing the central banks fancy word for create new currency and why call Keynesian model. So. We'll just looking at the. The nausea has crypto was born as a reaction to the two thousand eight financial crisis. We can talk about the you can talk about the positive implications for crypto markets that was kind of interesting. I see I would think that the Qe is will be seen as. Positive full crypto is just that what we expect to happen terms of light hyperinflation and then bitcoin going to the moon that's not been happening. Yeah. And with twelve years into bunkers levels of Qe. So can you speak on that? Yes. So I think to start I think a lot of people in the space very little trust for. Governments. Fans `institutions, which basically set monetary policy and end up printing. new money. It's not out of the world. A lot of the growth of Western economies has come from quantity quantitive easing, fractional, banking, fractional reserve banking, and so what this last to do is Basically. Create new acids new opportunities and and put money into things without having everything directly backed by a piece of gold or some other kind of hard asset Actually what's made it possible for our economy to grow post gold and post slavery as a different model I think we're things run into issues when you create this new money and it goes to a junk so. The Super Leverage Politics that have no real value generating a real value and you get this collapse in believer faith in that in the underlying and as well as claps and faith in the money that represents it, and so truly question of allocation. If you do to easing and give the money to chucky cheese dollars, you're GONNA have a problem if the money goes to space exploration and developing new medical research and helping the poor in a way that is reasonable and actually creates value than you have. Okay. You know banks. Currently, they do publication where their lending out money to people to buy real estate. For example, the recently generating that money themselves and then were getting the money returned to them through. The return of principal plus interest, and so you can basically create and get it back plus some if it's done correctly. So. In terms of its relation to crypto space I mean. In the last twelve years obviously bitcoin his done quite well in the last year or two a little bit more flats. It's tough to I. Think Today we look at like bitcoin why isn't going up more but it's pretty astonishing that it exists at all and that it was able to take flight, and so you know you can kind of see this risk premium or maybe a extra. Now the in the price of all this kind of uncertainty especially the early days of Bitcoin. By quantitative easing or new money helps to move into the space. That I think in terms of the. Performance recently and like its relationship to new money printing in the US, for example. I. Think it's. Very early yet to say, that money hasn't come into the space or you we might have seen a giant collapse so they're not been quantitative easing. It's tough to know what to compare it to necessarily but It's not surprising that there's a bit of lag or not an exact timing of like new dollars per did in twenty cents immediately goes Debbie Bitcoin obviously there could be some time lag. Structure Market. Dynamics. That caused the price do not move exactly the same moment and probably a good thing that it's not completely dependent upon the money supply for the price of Bitcoin number just be another leveraged financial product just like any other make bitcoin anything special unique. Okay. Isn't that the argument though like This there's a delay. In between the creation of new currency and having an impact on prices. And The. Question is I think they'll answerable question about. Eighty degrees of that economic effect. Happens. And be will. No. One can tell how long it takes. To to actually have a real effect on relation. In the the question. Show in the. Bitcoin. World. We all love. The fish supply, right Twenty one, million goings. Will ever exist right all twenty, one, million of mind. But we know that that is the absolute guarantee monetary policy. That's most people are into crypto four and it can be changed. You know technically you can change the rules of the network, but it require mass consensus, which is highly unlikely to ever get past right because the bitcoin would lose its value since that's One of the tenants everyone's into it for so just purely by simplifying it. If. There's a pile of twenty, million bitcoin. The. Ratio a prices ratio between one asset. Another right. So if you trade against US dollars, you have a ratio with dolls and wanted to on the other. And if you took old dollars in existence will bitcoin existence and credit ratio than you've got. A bitcoin price say, right. Now, if you increase the supply on one side of the equation, he changed the price.
"reserve bank" Discussed on Chat With Traders
"And. What is the goal that the Fed is trying to accomplish by doing this? Their goal is to try to make the system have enough kind of liquidity so that begins to operate correctly again. See what happens is that there's basically not enough money in the system because credit is being contracted the and basically. There's there's not enough chips to go around so therefore it ends up being this kind of game of whack a mole that one person wax it and then it comes up again. They've tried to whack it again. And it just becomes a self fulfilling prophecy where the credit crunch contraction of selling causes the value to go down which then means that more people have to sell and so what they're trying to do is provide enough liquidity to stop that kind of that kind of reinforcing kind of spiral and what they do is the take all the securities that they can that the from the dealers bank balance sheets that they're having trouble financing and having trouble owning so that the dealers can buy other things that are more risky so the goal is to try to make it so that these banks the JP morgans of the world don't need to worry about financing treasuries. Don't need to worry about that. And they can go out and they can buy the more risky securities that basically the Fed should not be buying because the end of the day the Fed is supposed to buy only government securities. Now it is being blend it is being kind of kind of let us just say it's changing this time. In two thousand and eight. There was the tarp program and there was some different things in the Fed. Got In trouble because they blurred the lines of what they were allowed to buy and then Congress went and they actually tied their hands again. But in this case what's happened is the Treasury's gone and actually taking a role where they've worked hand in hand with the Fed so that the Fed can buy corporate bonds but the Treasury takes the first loss so that the Fed is in essence still taking the government risk and it's a risk of security for the for the Federal Reserve because the Federal Reserve is not supposed to be trying to pick which country which countries is a story which companies should survive in. Which shouldn't they shouldn't be sitting there going. I'M GONNA BUY GE paper. But I'm not going to buy Boeing paper. They that's not their goal. Their goal is to provide liquidity for the system now. Unfortunately what happened was because there was this terrible virus and because nobody wanted to own any securities the government was forced to go and say no. We're GONNA backstop investment grade paper as well meaning investment greatest kind of higher grade corporate paper bonds. And so what they did was the Fed found a way working hand in hand with the Treasury to actually by corporate paper. Can you just explain what corporate paper is okay? So that's like a GE or Boeing or Microsoft or apple issues bonds and those bonds traded in the open market and that would be an example of corporate paper investment. Grade has to do with the ratings attached to that Bond and generally that's considered the the higher quality companies and then it goes from there goes into high yield or junk which is anything below triple B and that is kind of what the Fed said. We'RE NOT GONNA buy any of that but we're going to buy investment grade.
"reserve bank" Discussed on Chat With Traders
"Directly with the fat. And why would someone like J. P. Morgan or whoever other Parma's might be? Why would they actually want to sell to the Fed? Will they're selling to the Fed because they're making markets in these securities all the time and not only that it is their job to go into facilitate the trades of the Fed? Just like it's their job to be on the securities when the Treasury auctioning securities. They're actually obligated to bid for a certain amount that is there. Is There Judy to actually help? The Fed conduct these operations. Someone has to trade with the Fed. They can't just go out and buy directly from the clients. They're basically a middleman between the clients and the Federal Reserve. Interestingly Enough Erin that the Fed is buying so much right now that the for the first time ever. I was talking to a tips trader. That was telling me that the Fed was trying to buy six or seven billion dollars a tips and the primary dealers only offered them four point seven they were the literally ran out of inventory to offer to the Federal Reserve. And that's what that's the one thing I just would like. People to kind of understand is the level and the speed upon which they're doing. These purchases is completely unprecedented. They announced two weeks ago that they were GONNA do seven hundred billion dollars of quantitative easing and they left it open. They said it was going to be over a period of a couple of months. But they didn't say that they couldn't stagger some more at the beginning and so what they did was they went and looked at the state of the market. And they just. They got a feel for how much they needed to do. Well the literally went through seven hundred billion in the first week they are buying the equivalent of of a two thousand eight quantitative easing we used to be basically sixty to eighty billion. I can't remember the exact number. They were doing that every day for the past two weeks. Stack of blue tickets on the Federal Reserve's desk is monstrous and then there's other ways as well that they can provide liquidity to the market. One of the most interesting things that they've done is that they've done these swap lines where they actually go and provide. Us dollars to other central banks. They did this in two thousand and eight. They did it to the I can't remember I think it's there's four standard banks that they do it with. It's a Bank of Canada. Ecb Bank of England. And I I'm I'm not sure who else it is. But they go and they provide these kind of liquidity these US dollar liquidity to free up the system. Well there was such a demand for US dollars at this time. They expanded their counterparties to ten different banks central banks and this was all in an attempt to try to help the world economy that was in desperate need of US dollars to provide the liquidity. The no one else could provide. You did say something in your aunts that they you spoke bet Tips WHAT TIPS. Tips Treasury Inflation Protected Securities Third. Just another form of government security so the Fed Donald do they buy regular government bonds but they also buy treasury inflation protected securities.
"reserve bank" Discussed on KTOK
"Reserve Bank of St Louis president James Bullard tells Bloomberg news he also expects a fifty percent drop in gross domestic product in the second quarter Katie okay weather center in the fourth stormteam cloudy today high of sixty seven a low tonight of sixty two and a chance of rain and then partly cloudy on Tuesday and a high of seventy I'm Beth Myers Katie okay news radio one thousand Katie okay studios are service of universal men's clinic for medical solutions for Edie yellow teeth learn more at universal men's clinic dot com last year lucky star casino gave away over sixty five the total number of one hundred fifty four million dollars more table games are closer than you think with no anti roulette and craps in content really the lucky star location because we're giving away two nine two hundred ninety dollar free play hockey every hour starting at ten AM lucky star casino the biggest closer than you think H. and H. shooting sports has the sig Sauer in four hundred tread five five six A. R. pistol with the free sig Romeo red dot sight seven ninety nine ninety nine and take up to fifteen percent off liberty and Browning saves with H. N. H. N. home delivery and installation Hey today shooting sports I. forty in meridian this is Stacey on her motorcycle this is Stacey off her motorcycle this has zero sentiment on her motorcycle for motorcycle it's financed at cetera not accentor a now you're better on your bike with basic policy starting at seventy five dollars in here call today a progressive dot com progressive casualty insurance company affiliates available in all states hi I'm Raymond and vice president of optima tax relief if you're in debt to the IRS there's a lot you need to know starting with rule number one don't mess with the IRS can garnish your paycheck levy your bank account even take your home or business there's a way out it's called the fresh start initiative if you qualify you could save tens of thousands for tax help you can trust call optimum for a free consultation call eight hundred four nine eight thirty six twenty two eight hundred four nine eight thirty six twenty two optima tax relief details please with automatic really dot com hello everyone this is anywhere there's acute disease epidemiologist with the Oklahoma City county health department coronavirus is here let's protect ourselves by washing your hands covering our mouths.
"reserve bank" Discussed on America Adapts the Climate Change Podcast
"Of the market market okay adapters. That is rap. Thanks to eat Galloway and Tom Flanagan from the Reserve Bank of San Francisco for giving us some background on the Community Kennedy Development Investment Review Folks. It's quite an issue with tons of articles from some of the leading thinkers on adaptation and community development. I'm very encouraged that. The Federal Reserve took a leadership ship role in bringing all these voices together links to the review are in my show notes. Please take a look. There's much to learn and thanks to Jesse for editing that issue and for coming on to talk about the climate intelligence elgin arms race many services and technologies will be coming online in the years ahead many integrating climate data. How can practitioners have confidence? This information will be useful. Inaccurate was Jesse shared. It's still an emerging area and those who are not only innovative in this space but reliable managers of information are likely to do well. It's still a bit of the wild wild in West in this area. It's exciting but something also to be cautious about okay. Also relevant to the Community Development Investment Review. I wanted to share a quote from Jesse recently gently Senator Elizabeth Warren said letter to the heads of all the major banks encouraging them to plan for climate change in her official letter to the banks. She actually included a quote from Jesse and his work in the Community Development Investment Review. Here it is. According to Jesse Keenan the editor of the San Francisco feds publication quote the private sector has always always adapted one either adapts to new markets products or services. Or they go out of business but the current calculus is more than a function of market. Share it is a function of where there it will be a market at all Senator Elizabeth Warren very cool. This came out just after we recorded our episodes of very timely and also demonstrating the influence silence of the review all right some final housekeeping. I'm excited to share this new work that I'm doing. I want to mention that. I'm working with symphonic studios. I mentioned this in my last episode in going forward. You're you're going to hear a lot more about Simpatico I'm going to be hosting live talk shows unsympathetic..
"reserve bank" Discussed on KCRW
"The president of the Federal Reserve Bank of Dallas. And he said on Bloomberg that. You know, maybe the central Bank got a hold off raising interest rates for a bit. And also that maybe the fed oughta think about slowing down how quickly it's ringing its balance sheet, which is a it's a ledger if you will of its assets and liabilities a ledger that we ought to say in the middle of the financial crisis. The fed really expanded as it bought bonds and mortgage backed securities to give the economy a boost because we usually talk about the fed and interest rates, we figured it would be a good idea to look at this other tool, the fed has and how it uses it to control the economy, Victoria, Guido covers the fed for politico. It's good to have you on. Thanks. So what is it about? What Robert Kaplan? The president of the Dallas fed said today that has people looking at it and going so the set has been shrinking its balance sheet, they call it kind of on autopilot. And what that means is up to fifty billion dollars a month worth of bonds are rolling off the balance sheet maturing without being replaced, and the fed did that sort of deliberately because you know, back in two thousand thirteen markets kind of freaked out. The first time the fed said that they were gonna stop buying bonds. And so the fed is very aware of the fact that markets are very sensitive to changes in the balance sheet. So as long as the fed is sort of doing this on a steady schedule, they feel like markets know, what's coming in that it's not going to be a scary. But that is affecting the whole system because basically means that the said is no longer as big of a player in the market, and it's making markets. Let me get you to explain the the actual mechanics here when the fed goes out and buys bonds. It is putting liquidity into the market that is it's putting cash into the market, right? And what does that do it pays for that bond with cash rent? It pays for that bond with cash that wasn't already in the economy. Abc cash into the economy. And now when it says as it has for the past five years, we're going to stop doing that. In fact, we're going to let some of those bonds expire that is doing what it's taking cash back out of the economy. And so you know that affects you know, maybe how easy it is to get alone. Because you think about it. There's there's more cash out there in the economy banks are more likely to lend it out if there's less cash, they're less likely to do that we just sort of the point right? But the Fed's monetary policy is entirely based around, you know, loosening or tightening credit conditions, depending on what's happening in the economy. Right helped me last thing. And then I'll let you go. Help me understand the relationship between the Fed's balance sheet, and what it's doing with that and the federal funds rate, which is the interest rate that the fed controls directly, and which gets so much attention every time Jay Palestinians up in front of a microphone after the fed me. Right. That's actually really interesting part of this is the fact that interest rates completely differently now than it did before the financial crisis. So basically because the fed bought trillions of dollars worth of lawn. There was way more cash them. And so, you know, the federal funds rate used to be banks lending to each other. But because there's so much cash in the economy banks don't really need to do that anymore because they all have enough of it. And so now the way that the sets interest rates is by paying bank's interest in raising the amount of interested at pays those banks on cash deposits at the fed. And so, you know, one of the main reasons why the fed did that was to affect long term interest rates, and then at federal funds rate is sort of how it sets short-term interest rates, basically as the balance sheet shrinks that affects interest rates over the long term. In addition to interest rates over the short-term, Victoria Guido. She does financial.
"reserve bank" Discussed on FT News
"Then since then, obviously, it's become a big issue in the media, and in the public domain, but the only thing that the finance ministry has said publicly so far is this rather ambiguous statement a few days off to that speech in which they reaffirmed the right of the ambiance to autonomy. But they also reaffirmed the right of the government to make its case and make its views known in consultation with the governor. So it was sort of slightly even-handed statement. But it seems that the some kind of truce at least for the time being and there's a board meeting. I think on the nineteenth of November where it appears that the government wants to again, make its views. No, no understood or accepted at that board meeting of the I'll be I. And that's where it stands at the moment. I mean, there's always the possibility of further movement. But at the moment, it seems that both sides have taken a step back from the brink and are waiting for the other side to act as you mentioned. This whole episode has unnerved international investors. But what's been the reaction amongst India's business community? Well, that's very interesting. So that the business community is always on the side of low interest rates, boosting the economy and so on and they've come out in support of that. And they both have come out in support of moves to ease. What they think is a very severe and possibly dangerous liquidity crisis among especially the shadow banks, some of the nonbank financial companies which finance housing and building an infrastructure and so on so they think that the RBI has gone too far in trying to curb bad loans to the extent that he's actually endangering the financial system on. There is an argument for that. You know, the the ambience has been in a sense too tight at a dangerous moment and some business. People have spoken out. In public about that on the other hand. I think where the business community would hesitate is if they saw really blatant move by the government to seize the assets of some of the excess reserves of the central Bank for purely political ends. And if they saw a move to really undermine publicly the autonomy of the central Bank that wouldn't go down well with the business community, so they want economic boosting measures. But they don't want a sort of undermining of what is a very important institution as innocence. The represents through successive changes of government of different political hues, it does re present sort of financial and economic orthodoxy and has done for many decades, and it's for a respected institution and to undermine that would clearly be bad for business and bad for investors. As you mentioned this little falls into the context of the upcoming inactions. But could this row perhaps, ironically damage Moody's reelection prospects? I don't think the row will damage in the sense that it's a little bit too obscure for most ordinary voters. They're much more concerned about the day today. Cost of living those kind of issues, I think if Mody or the muddy government got its way, you could see a sort of short term boost for the economy, which would improve the BJP's electoral prospects. But in the longer term, it probably wouldn't be terribly good for the economy. And those always be that damage that is caused by investor loss of confidence, you know, the repeat might full drastically if the central Bank was really damaged or if the governor resigned, if the repeat went on that would increase the price of oil and so on so, you know, it cuts both ways. So what happens next? What's the next installment of this drama? Well, at the moment, it looks like those to be a show done alert, maybe a showdown behind closed doors at the board meeting of the I'll be I a couple of weeks from now that seems to be the next set piece of it. But of course, as always as opposed to -bility that people will come out and say things in public before then and part of it will depend on whether there is a further sort of lurch towards crisis by some of these shadow banks. There was a big one called I l and f s that had to be bailed out by the government awhile back. So that may be the next step or we may see everybody looking at things a little bit more calmly. You know, I think these kind of disputes between central banks and governments not unique to India. This one does seem to be uniquely severe. That was Maui talking.
"reserve bank" Discussed on FT News
"I'm Adam Samson, India's prime minister Narendra Modi has become embroiled in a public dispute with the country central Bank and its governor critics say the independence of Reserve Bank of India is at risk and this could undermine confidence in the management of the economy. Victor mallet are Asia News editor tells Katie Martin story. What extent case the government asking the Reserve Bank of India to do? And does it have the power to compel the Bank to do its bidding? What's good question? I mean, they seem to be asking for a lot of things they've always wanted low interest rates like Trump wants the fed to have low interest rates, you know, political leaders always find it convenient to have the economy being boosted, especially when they've got elections coming up, which is what's going to happen in India. The some state elections coming up in a few weeks, and there's a big general election in April-May next year. So they wanted to easier interest rate environment. They've always wanted that. But they also want the central Bank. The Reserve Bank of India to ease up on its restrictions on some rather fragile things called nonbank financial companies these basically shadow bangs that are not licensed buying and it also wants the ABI to ease up on state banks, which have accrued a lot of very bad loans by lending to rather dodgy companies and conglomerates and so on over the years and those are on. The a lot of curbs and restrictions from the central Bank. And then lastly, and this in a way is the most controversial thing they feel that they want to seize some of what they think is excess capital in excess reserves of the central Bank for their own purposes. And that is very controversial because it clearly impinges on the autonomy of the central Bank, and is not very good fiscal practices. Clearly just a way of getting money that they spend on making the economy better than it really is. And in fact, when the deputy governor Varela cherry, I gave a speech that kind of signaled that this crisis between the central Bank and the government was happening. He referred straightaway to Argentina in two thousand ten where the governor of the central Bank of Argentina eventually resigned over exactly that issue. The attempt by the government to seize some of the assets of the central Bank for its own purposes. The mechanisms are available to the government right to do this. But they're just not been used before even in times of some pretty deep crisis. It's a little bit complicated. The Bank is I think you could call it so two semi independent like most central. Bangs probably it's owned by the state, but it does have a degree of autonomy, which the finance minister tube reluctantly confirmed the other day, but there is a provision in the act that set up the Reserve Bank of India, the allows the government to order it to do things in the public interest after the government has consulted with the governor. And this is the section of the law that has not been previously used which the government apparently has been threatening to us, and this is really what triggered the whole crisis. So they all sort of within the legal rights to do something like this. But it would be very negative for investors. I think where the Indian oh foreign if they were to undermine the autonomy of the central Bank in this very blatant way. So they can do it technically probably, but politically and among the investment community would be a pretty negative signal. And this will come to a head really quite recent named. How has the albeit responded? Well, the albeit in a sense brought this to the public domain with this extraordinary speech a week or ten days ago. Oh from barely Charlie the deputy governor, and he was thought to be speaking on behalf of Egypt Patel, who's the governor who is supposed to have threatened to resign. We don't have that from him in person. So they brought it up in this, very fiery speech, where he said, you know, you will regret it if you undermine the tell of the central Bank, and.
"reserve bank" Discussed on Masters in Business
"It's never badged being quoted. It's always somebody else quoting Paul, Tucker Wright, creating budgets dictum. But again, he did it paldon create this, right? He's referring to something that came before Ben Bernanke is the other one is really popularized this, but only two thirds of Badghis dictum Renfrew lend freely maybe one and a half of Len freely against so so so so collateral, but don't do penalty rate, right? And. But you know Brank his book his memoir the crisis, Huq's the courage to act act yet, right? Yeah. And he notes when he forgave fed chair in two thousand six and the chair has a personal library and in his office. And he said, I brought Badgett's Lombard street and put it there now. Now Ben banenky is a very sophisticated financial historian. I, I assume he's read Lombard street, but I've is book would not give you evidence that did you overlap with Burnett key when you're Princeton, he was the head of the economics department? No, no. I have met him a couple of times before, and you know, we've exchanged views on a variety of topics. I think that he's a remarkable public servant terrific scholar, and I always leave reading any paper or even blog posts these written feeling smarter. But we've also had our differences. We do an argument about an assertion that he makes that I think is false, which is that the reason the fed didn't. Bail out. Leman brothers is that a lack of illegal to do. So that's been the claim. I have a pet theory on that. I'm curious as to what yours is was illegally is false. That's not correct. They did have legal to do it to bail out a dealer. Oh, absolutely. I mean, the statute is in unusual and exigent circumstances a term, which is sounds very heavy, but it's not defy unusual. Negligent is Tuesday could it could be so long as five members of the board of governors vote in favour which he had and the Federal Reserve Bank who's in his district, the institution exists New York, New York is the loan is secured to the satisfaction of the Federal Reserve Bank security. The satisfaction was that mean, well, let's not find right. Although quite bluntly, we know those a ton of fraudulent shenanigans going on Lehman Brothers with the famous repo, one of five and all of that. So you might say, well, then we're not satisfied by that, but that's a discretionary determination. So we lacked legal authority. To do so false. It says we were not satisfied by the cloud will present his different different thing, which of course raises the question then why did they really let it hit the pavement will then why is a edgy different? Their answer is because they had a good insurance business going out all kinds of profitable businesses within their twenty thousand corporations under their their parent company. So again, was the right decision or the wrong decisions, a separate set of questions was politically motivated or not. Should it have been subset of questions? Did Attlee authority to do, so we'll yes, of course they did. And this isn't just me being an obnoxious lawyer saying, well, look at this. The idea that they lacked the legal authority to do so was the single defining idea that motivated the passage of dodd-frank. That's fascinating. And so I think that ends up mattering a huge amount. It just isn't isn't correct. So I wish I was a fly on the wall when they were having this internal debate. But my pet thesis is simply at one point early in the spiral of Lehman Brothers, Warren Buffett of Berkshire Hathaway had the conversation with dick fold made a low ball offer because he's an value investor and to everybody who was an employee Lehman Brothers lasting regret dick fold said disguise trying to steal the company for three billion dollars was only a small percentage ownership, and he rejected buffet and I can't help. But think from a moral hazard perspective, the debate going on with Burnett Anki and Geithner, and, hey, how could we bail out this guy. When he turns down Warren Buffett, who, by the way later made a much more advantageous loan to a much better Bank Goldman sign. So full folly turned out to benefit Goldman and end buff here's my friendly amendment here your theory, I would call it folds follies because buffet was one in a series of suitors who came knocking and dick fold was trying to value the companies, though we're two thousand five thousand seven or eight..
"reserve bank" Discussed on WMAL 630AM
"Looking into Marxist investigation someone else's does what we do any evidence that they. Actually are censoring search results looking into it now Google is denying it you should know this Google is. Flat after Trump said what he said that ninety two percent of the search results. When you put Trump in the search field ninety two percents negative. In, hate-filled Google is denying. That they do anything They're flat out denying it They are denying that they tilt. Their search results, at all Now we know that that's not true But that's the starting point they deny? What do you expect them to say, they're, not, gonna come out and say yeah yeah we're working with Obama and Hillary did destroy all you'll people and we can't wait till you're gone and our plans call for you to be a non factor. Inside a ten years deal with it they're not going to say that They're just gonna do it Or try to consumer. Confidence numbers are out, folks these, these economic, numbers the, unemployment be it economic. Growth the by the way I think the Federal Reserve Bank is now predicting four point six GDP growth for the upcoming the current quarter which will end in September right after the new iphones come out and four point six on. Top of four point one now. We've got consumer confidence numbers they have in August the highest level. Since October of two thousand Now on Tober two thousand is before nine eleven happened Consumer confidence rose in August to its. Highest levels October two thousand building on July solid result this is the statistic that. Is monitored, and kept by something called the Conference Board these. These these people been around. For decades The Conference Board. Index rose to one hundred and thirty three point four in August despite expectations from. A survey, of Reuters economists that would fall Why would anybody, think a survey of Reuters economists would, be anywhere near right Reuters every month admits, they are shocked, and surprised they're experts are shocked and surprised? By every month economic numbers a why would anybody still rely on Reuters economists The Conference Board's index rose despite expectations from a survey of Reuters economists. Would fall confidence number rose last month at one, twenty seven point, four it's one thirty three point four today Consumers reported better feelings toward the. Economy in the near term, but less optimism about long term growth, now what this consumer. Confidence survey measures is Americans seven on current economic conditions. And prospects for. The next six months The difference is people have jobs people have more money Have more disposable income, and they feel confident that this is. Going, to continue which. Makes them confident to spend. It now here's the challenge this is a challenge coming how do we convince? People that the Democrats are gonna, reverse all of this This is one of the rare, times it's not the only it's not. The, first but this. Is one of those rare. Times where the president and his administration are not directly benefiting or being credited For robust economic recovery or activity although I think in Trump's approval, numbers we see. Some evidence that the American people are. Willing to credit Trump but what really needs, to happen the American people need to know that if the Democrats get back in charge of things this is over And they are. The Democrats are out there saying so, they can't wait to get rid of the tax cuts re raise people's, taxes they can't wait to get. Rid of some of the regulates to add back some of the regulations which have opened, up the economy The real challenge for, Republicans and everybody interested in this is to convince the American people that everything happening. Today in the economy is going to end and reverse itself if the Democrats get back in power including winning the house in November We we are in the midst. Of an economic boom I'm telling you remember that no one in Washington In the world actually thought was possible Except trump Even in the campaign when Trump suggested that he could return the economy to three. Percent growth you remember what they said about him They. Said that that's. Near criminal Donald Trump cannot make a statement like that that is misleading the American people that. Setting up false expectations it's very cruel they said of Donald Trump that three percent economic growth. Is simply not in the cards anymore And. One of the reasons why is. Because the great and valiant Barack Hussein oh. Had never been. Able to get hired in one point five. Percent and since. Obama was the absolute wizard of everything if all bomber couldn't do it it couldn't be done And I'm only slightly exaggerating the point is the people that ran the political, media, complex in Washington did not think any of this the, tablet now. In our economy was possible and so there was, not a single person among them, willing to even try You wanna talk about giving up on something you wanna. Talk giving up on a dream giving up. On an ideal giving up on the whole concept of American greatness and exceptionalism Everybody in the Washington establishment had given up Didn't think it was possible I would go so far as to say that many of them, did not want an economy growing like this and they certainly the Democrats don't want something like this happening when they're not. In power and can't claim credit for it This economy expanding and growing consumer confidence is one of the greatest harbors the Democrats can experience This is the kind of thing that sends them into abject panic in. The need to start rewriting history in terms of their media stories about. Why this is happening It's why they're now embarking I kid you not on various efforts to credit Barack Obama for this Which has no chance of succeeding An economic recovery an economic boom that no. One in Washington thought was possible and despite having all those people arrayed against him in Washington, Trump has somehow made this happen And in another sane universe this would be the only story of the year But now there is this hoax This setup this frame job By the upper levels of the intelligence community and the Washington establishment to destroy Trump because of that never ending story and the ongoing. Lies and distortions in it what would be, the biggest, story every day the economy the stock market yesterday twenty six. Thousand, for the first time NASDAQ eight thousand for the first time on the strength of what a new trade deal with Mexico. That nobody, thought was possible And nobody believed that Donald Trump could pull it off not after what he had said about the Mexicans in the campaign The media is left, the media is reduced in reporting on, the Mexican trade deal the snarky comments about well there's nothing in it, that says Mexico is gonna pay for the wall so Trump failed A bunch of, petty small minded Little naps Wow wise yapping at the angles in the knees of Donald J Trumpster Really folks what is happening here, in the US economy. Would, be the big story and not just here but around the world I was alive in the nineteen eighties when the Reagan version of this happened and I'm here to tell you it, was the captivating story It was so big and so constantly reported a Democrats and the media were in panic even then trying to rewrite it If the next quarter if the next quarter's. Economic growth is four point one percent or four point six is, the Atlanta Federal Reserve Bank says That we, will have evidence that this is a sustainable Economy on fire but meanwhile what, are we, get we, get Russia and Russia and Russia and Lanny and CNN and stormy And McCain and Omarosa oh my what happened to Omarosa. Where's Omarosa, that gigantic tell all? They should have gotten a month whereas, Omarosa what, happened to, that story It must have bombed out for some. Reason why did the Omarosa book bomb Because nothing in it.
"reserve bank" Discussed on Bloomberg Radio New York
"Services committee this after an upbeat assessments on the economy before the Senate banking committee that helped lift the dollar we're joined now by Mark Vitner senior economist at. Wells Fargo on the line in North Carolina, this morning Mark good, morning welcome Mr Paul seemingly cemented the rate hike path but he preserved his options what was, your. Takeaway from. This Well he did preserve his options I think the the next move is is likely. September and they made that clear that they're going to continue to to gradually raise interest rates for now and I think that that the, insertion of for now was. To to really to is that Things? Can, change and that he talked. A little bit about what trade policy of how they, they don't see anything in the hard data but a lot of businesses are are beginning to tobacco. Away from capital spending plans and again your take on how many more rate increases this year Well our forecast has to more in it and we assume they're going to. Do one is number one December but I do think that there's going to be. Much more discussion about that second night if you look at some of the research by the various Federal Reserve banks a number of Federal Reserve Bank presidents believe they were getting close to a neutral rate, and so I don't think that a second rate hike this year will be decision. So steady, as she goes just sort of a gradualist policy here She goes. But I think that that that certainly even though they concerns about the shape of. The yield curve we don't want to intentionally invert the yield curve There's a lot more moving parts today the trade war, and and even the the the l. sneaky summit Really muddled muddies the, waters a little bit And I think that. In the, next move is is very, certain after that it's a little? Less certain where would you see treasuries going then Well we have we have the tenure ending the year somewhere around three ten maybe maybe his highest three twenty but it's had a. Real hard time remaining above three percent in some of that has. To do, with the slower pace of. Growth overseas and the greater uncertainty? Overseas You know a flight to safety the treasury's and but but certainly within. Inflation creeping up the federal seem, to have, any concerns any concerns about inflation being around two percent in fact you said that it was gratifying to percents because we've been below. That for so long that kind of? Talk, to us. A little bit higher rates than we have we reported, earlier, that.
"reserve bank" Discussed on C-SPAN Radio
"Never reserve bank president you had some time that your house that like what is that like has a different from being a governor on so a variety of ways on one way is this an important sharp of reserve bank president is to collect information that can be helpful when in bearing on monetary policy in understanding what's happening in the economy so the reserve bank's are structured on their up quayside public quayside private kind entity the were chartered to serve for public purpose but structure like banking organizations with privatesector boards of directors and those directors on a president meets with regularly and important role that they have is to provide information on what they're seeing in the economy and more broadly reserve bank presidents are expected to interact with all significant groups in the areas that they serve both business leaders also are members of community groups labor groups ought to try to understand what's happening in the economy so um duda i suppose historical accident the twelve regions of the federal reserve the twelve districts are into pequal size um the san francisco reach and i guess up back in 1913 there was simple all that much out west but they've got to be quite a bit and so my district represented twenty percent of the national economy and covered nine states in so you know i travel though low for our district meeting with people in trying to understand what was happening in to distill all that i heard into something that could be rolf and input from monetary policy we also had a lot of operational responsibilities course supervision is something that's important annual for see the supervisory staff but we also had operational responsibilities for checking the chaos and other things and um some of these things like check their businesses and under us law they have to when there's competition with the private sector they have to cover their costs when i got to the san francisco fed check volumes were declining edited an astonishingly rapid great so it was clear that check was going to be a contracting business and you can imagine with substantial fixed costs and hugely huge declines in check walling unions covering costs.
"reserve bank" Discussed on WDRC
"Is will see rate hike number six in the tightening cycle which is ongoing and the third week of march at that federal open market committee made and if that happens then the new federal funds rate will be one on one half the one and threequarters percent and for those of you who are wondering what we're talking about when we save federal funds here's what we're talking about every bank that is a member of the federal reserve system is required to keep on deposit at the central bank the federal reserve bank is the central bank of the united states and each member bank is required in order to be a member they are required to keep a percentage of their deposits at the federal reserve bank every night they have to meet that percentage every night it's walked to the market every single business day well sometimes banks at the end of the day they look at their account and they say well were a little under were little under deposited in our federal funds account and so they will go into the open market which is the federal funds market that's a daily rate and a trade to during the day it's like the ultimate real time mother of all real time rate so they will go into the federal funds market at the prevailing rate at that time right now the rate is one on the court for one and a half percent and they will go in there and they will.
"reserve bank" Discussed on KKOB 770 AM
"Circuit on monday the atlanta federal reserve bank president wherever failed bostick we'll be out there as well as the san francisco federal reserve bank president john williams on tuesday morning the minneapolis federal reserve bank president neil cash carry he'll be out there wednesday morning the chicago fed president charles evans and also for rubber chicken duty on wednesday james bullard the st louis fed president and uh it's just going to be one of those weeks there will be a lot of fed jabbering going on more than that though more than that on tuesday will get the nf ib small business optimism index and this has been highly favorable the consensus is 1079 less reading want to seven point five lots of optimism out there tons of optimism we'll also get the jolts employment report tuesday uh you know the four point one percent unemployment rate is extremely low using historical data and certainly represents full employment by virtually any economic definition and job openings which will be part of the jolts report actually are exceeding hiring which suggests there is a scarcity of qualified workers we've talked about it a scarcity of qualified workers that will become more and more important if we start to see wage inflation which could be the beginning of the end but it hasn't happened yet we'll keep an eye on it that's not all also this week will be getting the consumer price index report friday morning estimated at one tenth of one percent if it comes in there the over a year will be two point one the core estimated at zero point two if it comes in there the year over year old be one point seven we'll get retail sales on.
"reserve bank" Discussed on Marketplace All-in-One
"In found like little snag little hickup oh huge deeper than that we're talking about a trillion dollars shortfall over ten years a huge number and uh the toughest fights were over how to make this deficit neutral turns out were really far for federal it's a real blow and you can see in the market reaction today that people are thinking this is this is going to be at least two serious delay if not jeopardising the whole process and what did the outgoing president of the federal reserve bank of new york say today in this regard y you know here so tricky thing david to is they all know these estimates aren't very good but that's not the point you know you do the best you can to get as close as you can to what the what the actual impact is going to be and clearly there just isn't enough there suggesting stronger growth built ugly actually the this morning sort of hinting at why that might be said she i i just don't think maybe this is the right time for stimulus and with the economy at full employment if grow stores to take off the federal reserve is going to have to temper back down again and and there's one of the factors say this tax bill does on leash an additional one and a half percentage points of gdp growth the result is going to be a said the titans faster and slows the economy back down because they don't want it to overheat risk for low t if economist at fc and financial and new york thank you thank you david.
"reserve bank" Discussed on Bloomberg Radio New York
"Federal reserve bank of chicago president charles evans says 'weaken flation in the us may not be entirely due to temporary factors evans spoke this morning with blue berg television and radio in zurich the inflation data had been disappointing i understand i read the arguments i've heard them that uh it's likely due to transitory factors there certainly have been a number of those in the u s i would say that uh in a low inflation is a global environment in so the whole world is deal with trans toury effects in the airline industry delta airlines says fares are set to improve in all major markets confirming a healthy or financial outlook after a summer of us price wars and longtime weakness on transpacific routes delta air lines advancing now by one point one percent tenure up four thirty seconds the yield two point three four percent gold down to 04 the ounce to twelve 85 down twotenths of 1 percent west texas intermediate crude oil up twotenths of one percent to fifty one oon a barrel recapping stocks higher s p of appoint up by one tenth of one percent it is one o2 on wall street that means it's time for the market drivers report and a look at american depository receipts and now here's dave wilson thanks charlie adrs or bautists directionless as us shares both the s p adr index and the sp five hundred or higher by less than a tenth of a percent germany's ga group is risen three point seven percent in us trading the machinery maker said activist investor elliott management owns a stake that exceeds three percent elliott's run by billionaire paul singer who is increasingly targetting companies in europe turkish mobile phone company turkcell as gained three.
"reserve bank" Discussed on WCTC
"Affect quest on we didn't ask why it isn't we said why can't it be in a hypothetical question why is what why why is it better for a group of people to set the overnight rate than it would be individual banks who are transferring those funds to one another okay no who j p morgan war eurojust edgar don't you know just tell us why it is good we don't need a history lesson tell us why it would be not good or to go a different why can't the free market you don't if you don't have a federal reserve bank good job open the federal reserve bank fall into the hands of a very few powerful wealthy individuals without any he morgan that wasn't the cuevas that wasn't the question the question was not uh to not have a federal reserve or eight airport or or eight orate or while they out the or a currency in all that eggs that exist when it comes to money supply we're talking about the overnight rate we're not saint about we're not we're not talking about getting rid of the fed that's not the point that were bringing up we're talking specifically on that particular rate well and if the argument is that while because it would fall into the hands of a few wealthy people the question is will what's on the other side of that table right because what you're talk about in the free market as the other side and that is the willingness to borrow at a certain rate right now now you could sit there and say okay but when it comes to you know the the the production of currency and how much you know currency is actually a unit uh in uh the the the currency supply how did they judged that and in you we can have a discussion on that particular thing as to how much currency in and currency manipulation and printing money and throwing it in uh you can discuss how that should be done worst simply talking about the overnight rate that fed rate we could move on to the other one we're not talking about the dissolution of the federal government and not having a government currency while and he was you know getting to the point that the the banks the people at the banks would be in charge of then making that decision very few people rich people would be in charge of.
"reserve bank" Discussed on Bloomberg Radio New York
"Six seventy four twenty seven at one point but we actually weakened a lot for the on your just in the last little bit worth six seventy five ninety three now well the reserve bank of dallas president robert kaplan is sticking to his outlook of two more interest rate increases this year that he says is strengthening in hiring and his outlook for inflation but my own view as inflation will slowly but gradually over the next two or three years not immediately by the next two or three years get to two percent indeed in the same time of course we do have the core inflation rate lead been declining of laden governor was speaking with bloomberg reduce a term keane is an event hosted by the council on foreign relations while the us is slipping in global competitiveness that's according to a new survey get that story from bloomberg denise pellegrini the us slip from the top three countries when it comes to economic competitiveness that's according to a new survey published by the i am d world competitiveness center the survey puts the us in fourth place now behind hong kong singapore and switzerland as executives perception of the world's biggest economy deteriorated after donald trump's election as president china climbed seven places to eighteen th place to these telling queenie bloomberg apec asia well as you as president trump and news announcing his final decision on the powers of climate change agreement he is getting an earful from industry leaders ed baxter is covering global news in of bloomberg nine 60cent resist good news of ad though shorter we begin let's start with apples tim cooke with lastminute urging to stay in also from the top of dow and must tweeting don't know which way paris will go but i've done all i can to advise directly to potus through others in a wh and via councils that we remain and mr trump acknowledges he's been hearing from a lot of people both ways meanwhile european commission president jeanclaude juncker saying that president trump should read the agreement before it decides what to do the unaccountable if a system came up common police the americans can't just get out of the agreement mr.