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๐Ÿ“ˆ Macroeconomics

IMF: Services price inflation is holding up progress on disinflation

IMF: "Services price inflation is holding up progress on disinflation, which is complicating monetary policy normalization. Upside risks to inflation have thus increased, raising the prospect of higher-for-even-longer interest rates"

The International Monetary Fund said Tuesday in its World Economic Outlook Update that global growth remains on track with the April 2024 World Economic Outlook (WEO) forecast, projected at 3.2% in 2024 and 3.3% in 2025. However, persistent services price inflation is complicating disinflation efforts and in turn,
dismal-jellyfish ๐Ÿ“ˆ Macroeconomics
The amount of interest paid to live another day? $7,380,456,000.

As of June 30, 2024 the total outstanding amount of all advances under the BTFP was $106,336,593,000. The amount of interest paid to live another day? $7,380,456,000.

Back in January, the Fed announced that the Bank Term Funding Program (BTFP) will cease making new loans as scheduled on March 11 and that the program will continue to make loans until that time and is available as an additional source of liquidity for eligible institutions. As the program
dismal-jellyfish ๐Ÿ“ˆ Macroeconomics
185 banks with $524 billion of assets had unrealized securities losses that exceeded their shareholdersโ€™ equity

Office of Financial Research: "As of Q4 2023, 185 banks with $524 billion of assets had unrealized securities losses that exceeded their shareholdersโ€™ equity."

The 2023 bank failures revealed banks' vulnerability to unrealized securities losses and rapid uninsured deposit withdrawals. Despite this, many banks still hold significant unrealized securities losses and uninsured deposits at risk of major commercial real estate (CRE) loan losses. This analysis from the Office of Financial Research (OFR) identifies
dismal-jellyfish ๐Ÿ“ˆ Macroeconomics
Fed Chair Jerome Powell

Fed Chair Powell: "we do not expect it will be appropriate to reduce the target range for the federal funds rate until we have gained greater confidence that inflation is moving sustainably toward 2 percent."

Today in testimony before the U.S. Senate Committee on Banking, Housing, and Urban Affairs, Fed Chair Jerome Powell provided a comprehensive overview of the current economic situation and the Fed's monetary policy actions. Powell noted that recent indicators suggest solid economic expansion, with gross domestic product growth
dismal-jellyfish ๐Ÿ“ˆ Macroeconomics
U.S. Revolving credit (credit cards) grew by $7.02 billion (+6.3%) in May.

U.S. Revolving credit (credit cards) grew by $7.02 billion (+6.3%) in May to $1.345 trillion, up from $1.338 trillion recorded in April. Consumer Credit and Credit Card use continues to outpace the Fed's 2% inflation goal!

In May, consumer credit increased at a seasonally adjusted annual rate of 2.7 percent to $5.064 trillion. Revolving credit increased at an annual rate of 6.3 percent to $1.345 trillion, while nonrevolving credit increased at an annual rate of 1.4 percent to $3.718 trillion.
dismal-jellyfish ๐Ÿ“ˆ Macroeconomics
June saw an unprecedented spike in US corporate bankruptcy filings.

June saw an unprecedented spike in US corporate bankruptcy filings, the highest recorded in a single month since 2020, and outpacing half-year data from the past ten years.

June witnessed an unprecedented increase in US corporate bankruptcy filings, marking the highest number recorded in a single month since early 2020 and surpassing half-year totals not seen in over a decade. According to S&P Global Market Intelligence, there were 75 new corporate bankruptcy filings in June. This
dismal-jellyfish ๐Ÿ“ˆ Macroeconomics