Wednesday, May 8

Finance, Investing

High finance, equity markets and economic data related to it.

Banking System Is ‘Safe’ And ‘Sound,’ Fed Chair Says
22Mar By Patti MohrNo Comments
Currency, Debt, National Budgets & Interest Rates, Finance, Investing, Types of News: Brief

Banking System Is ‘Safe’ And ‘Sound,’ Fed Chair Says

Federal Reserve Chair Jerome Powell answered press questions on March 22, 2023. Rate Hike Takes Place In Environment Of Uncertainty March 22, 2023—Federal Reserve Chair Jerome Powell assured the public and press on Wednesday that the U.S. banking system is "strong, sound, and well capitalized." His comment came less than two weeks after several banks, namely U.S.-based Signature Bank and Silicon Valley Bank and Swiss-based Credit Suisse, failed. The Federal Reserve Committee announced today it is raising the federal funds rate to a range of 4.75-5 percent in light of persistently high inflation. Powell said the Fed would have to bring inflation down to 2 percent because "the costs of failing are much higher." The Fed's decision follows a similar rate increase by the European ...
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Economic Sands Shift: ‘B’ Is For ‘Beginning’
16Mar By Patti MohrNo Comments
Currency, Debt, National Budgets & Interest Rates, Europe, EU, Eurozone, Finance, Investing, Global Economics, Types of News: Videos

Economic Sands Shift: ‘B’ Is For ‘Beginning’

March 16, 2023-Recent turmoil in the banking sector in the United States and Europe poses a challenge to governments facing inflation. Here's my take. Due to the lag effect of central bank policies, what we are seeing in the banking sector is a beginning not an end to financial troubles. https://www.youtube.com/watch?v=oyBfFctQYn4
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ECB Decision On Rate Hikes Marked By Uncertainty
16Mar By Patti MohrNo Comments
Currency, Debt, National Budgets & Interest Rates, Types of News: Videos

ECB Decision On Rate Hikes Marked By Uncertainty

https://youtu.be/VufZzhUGXWI March 16, 2023—In response to high inflation of 8.6 percent, the European Central Bank raised its three key interest rates by 50 basis points to 3.5 percent, 3.75 percent, and 3 percent. The decision is based on data collected prior to March 1 and does not take recent market turmoil into account. What's interesting is the ECB did not project its future path, noting an "elevated level of uncertainty." For more see ECB Raises Interest Rates Despite Credit Crunch.
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ECB Raises Interest Rates Despite Signs Of Credit Crunch
16Mar By Patti MohrNo Comments
Currency, Debt, National Budgets & Interest Rates, Finance, Investing, Types of News: Brief

ECB Raises Interest Rates Despite Signs Of Credit Crunch

ECB raises rates by 50 basis points on March 16, 2023. March 16, 2023—The European Central Bank raised its three key interest rates by 50 basis points in response to persistently high inflation. That increases the main refinancing operations, the marginal lending facilities, and the deposit facility to 3.5 percent, 3.75 percent, and 3 percent, respectively. Those rates are up from 0.00 percent, 0.25 percent, and -0.50 percent in June 2022. The move comes in the middle market turmoil stemming from pressure in the banking system over recent rate rises. In its press release, the ECB noted an "elevated level of uncertainty." It takes place as financial distress hits the banking sector in the United States and in Europe. Two U.S. banks collapsed in less than a week, posing a ripple ef...
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Inflation: U.S. Prices Rose 6 Percent
14Mar By Patti MohrNo Comments
Currency, Debt, National Budgets & Interest Rates, Types of News: Bit

Inflation: U.S. Prices Rose 6 Percent

Energy And Used Car Prices Come Down While Food And Shelter Still Soars March 14, 2023—U.S. consumer prices increased by 6 percent for the 12-month period ending in February, according to the Bureau of Labor Statistics. That is the smallest 12-month increase since the period ending September 2021. It is still well below the 2 percent target long held by the Federal Reserve. Prices Dropping Prices fell in February for a few items on the index. For example, the prices of oil, gas, and energy services came down by 7.9 percent, 8 percent, and 1.7 percent, respectively. The cost of used cars and trucks came down by 2.8 percent following months of a downturn that have brought prices down by 13.6 percent for the year. Also, medical care services dropped by 0.7 percent. Prices Rising ...
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US Regulators Act Following Bank Collapses
14Mar By Patti MohrNo Comments
Currency, Debt, National Budgets & Interest Rates, Finance, Investing, Types of News: Brief, United States

US Regulators Act Following Bank Collapses

Run On Bank Was First Sign Of Significant Volatility Amid Rate Hikes March 14, 2023—U.S. regulators and policymakers acted swiftly over the weekend following the collapse of Silicon Valley Bank on Friday and Signature Bank on Sunday. The runs on the banks by customers are the first signs of major volatility following the Federal Reserve's multiple rate hikes to reduce inflation. The government through the Federal Deposit Insurance Corporation provided a risk-exception guarantee for all bank deposits of the two banks. That mitigated the risk of additional runs on banks. The details are as follows: The FDIC's guarantee would not apply to investors or unsecured debt holders. Regulators removed senior management of the banks. The FDIC took over Silicon Valley Bank and opened Signatur...
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U.S. Government Owes $395.5 Billion In Interest On The Debt
26Feb By Patti MohrNo Comments
Currency, Debt, National Budgets & Interest Rates, Types of News: Bit, United States

U.S. Government Owes $395.5 Billion In Interest On The Debt

Feb. 26, 2023—Here's something to remember when discussing the U.S. budget, national debt, and debt limit: The U.S. government is expected to pay $395.5 billion this fiscal year on interest charges alone. That's a helpful reminder that comes from the Pew Research Center in a recent post. For more information on the U.S. budget, go to the White House's Office of Management and Budget. There you'll find historic tables of the U.S. budget. Moreover, the U.S. government is projected to spend over $1 trillion more this year than it collects in revenue. That money not only increases the U.S. debt, it also fuels rising inflation in America and beyond.
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Disney Faces Shareholder Proxy Vote On China
23Feb By Patti MohrNo Comments
Finance, Investing, Globalization, Global Disintegration, Types of News: Analysis

Disney Faces Shareholder Proxy Vote On China

Disney in Shanghai UPDATE: The shareholder proposals went down at the April 3, 2023 annual meeting. Feb. 23, 2023—Coming soon on a proxy vote near you: Disney shareholders will have a say in whether the company should disclose details about its operations in China. The Walt Disney company, DIS, faces several shareholder proxy votes when it holds its annual meeting on April 3. They include votes about its charitable contributions, its political contributions, and its business in China. The National Legal and Policy Center, NLPC, a Disney shareholder, is proposing the latter. Specifically, the public-interest nonprofit group is asking Disney to do the following: "Report annually to shareholders on the nature and extent to which corporate operations depend on, and are vulnerable...
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U.S. Debt Fast Approaching Its Legal Limit
17Jan By Patti MohrNo Comments
Currency, Debt, National Budgets & Interest Rates, Types of News: Brief

U.S. Debt Fast Approaching Its Legal Limit

Treasury Secretary Warns That U.S. Government Likely To Hit Debt Limit On Thursday January 17, 2023—It's been a little over a year since Treasury Secretary Janet Yellen told a Senate panel the U.S. debt of $28 trillion didn't matter. Now, 16 months and over two trillion dollars later, Yellen is warning that the government will hit its legal debt limit of $31.381 trillion on Thursday. She estimates Treasury can keep paying its bills until about June, but it won't be easy. In fact, Treasury is forced to take extraordinary accounting measures to keep the government running. The extraordinary has become ordinary in American federal bookkeeping. For Yellen, like many in Washington, the problem is still not the debt; it is the debt limit under U.S. law. It is that limit that the go...
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U.S. Inflation Remains ‘Highly Uncertain,’ Fed Chair Says
30Nov By Patti MohrNo Comments
Currency, Debt, National Budgets & Interest Rates, Types of News: Brief

U.S. Inflation Remains ‘Highly Uncertain,’ Fed Chair Says

November 30, 2022—Although increases in consumer prices ebbed slightly in the United States in the latest numbers, Federal Reserve Chair Jerome Powell warned on Wednesday that inflation's path remains "highly uncertain." He noted that October's figure of 7.7 percent annual growth is better than the previous Consumer Price Index estimates but said the single-month improvement doesn't reflect a trend. Powell said the Fed policy is likely to remain "restrictive for some time to come." Addressing an audience at the Brookings Institution, he said price trends differ in three categories: core goods, housing, and services. Prices in core goods are moderating while housing service prices rose rapidly. Meanwhile, prices in services are likely to rise due to unmet demand in the labor market. ...
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