by Steve Skancke, Ph.D. | Mar 13, 2023 | Articles and Videos
After the failure of Silicon Valley Bank (“SVB”) last Friday and Signature Bank on Sunday (yesterday), the U.S. Treasury, FDIC and Federal Reserve are using emergency powers under the systemic risk exception to make whole all depositors, not just those with deposits...
by Steve Skancke, Ph.D. | Mar 1, 2023 | Articles and Videos
The Fed’s Open Market Committee meets this week and will most likely decide to increase its Fed funds target another 25 basis points, bringing it to 4.75%-5%, while acknowledging their readiness to adjust rate increases if banking system stability requires it. The...
by Steve Skancke, Ph.D. | Feb 13, 2023 | Articles and Videos
Financial markets are signaling their belief that the Fed can bring down inflation without putting the economy into recession and millions of people out of work – i.e. the “soft landing.” This Tuesday’s release of January CPI inflation data will test that belief....
by Steve Skancke, Ph.D. | Feb 6, 2023 | Articles and Videos
The Fed’s 25 bp interest rate increase and a surprising 517,000 new jobs in January, with the unemployment rate falling to 3.4% — a 53-year low — contributed to renewed confidence that the Fed can be bringing inflation down without putting millions of...
by Steve Skancke, Ph.D. | Jan 30, 2023 | Articles and Videos
U.S. GDP grew 2.9% in Q-4 2022 and core PCE inflation increased by 0.3% in December, with its three-month annualized rate falling to 2.9%. The S&P 500 responded positively for the week and is up 6% in January through last Friday. Fed Funds interest rate...
