Dismal's Smacks

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📈 Macroeconomics

Minneapolis Fed President Neel Kashkari wants to run a new high-inflation stress test on banks to identify at risk banks.

Inflation Alert! Minneapolis Fed President Neel Kashkari wants to run a new high-inflation stress test on banks to identify at risk banks. Kashkari: "the historical record shows that banks are unlikely to take meaningful actions to enhance their resiliency against this risk on their own" Executive Summary: Wut

Federal Reserve Alert! 109th Annual Report of the Board of Governors of the Federal Reserve System to Congress: "Based on a number of measures, leverage at hedge funds during 2022 stood above its historical average." Hedgies R Fukt!

https://www.federalreserve.gov/publications/files/2022-annual-report.pdf This report covers the calendar-year operations and activities carried out by the Board in its five key functional areas: (1) monetary policy, (2) financial stability, (3) supervision and regulation, (4) payment system and Reserve Bank oversight, and (5) consumer and community affairs.

U.S. Economy in a Snapshot Overview of the July 2023 Snapshot: Q1 GDP Growth Slows but Remains Solid, Driven by Consumption, Government Spending, and Net Exports; June Sees Solid Payroll Growth and Slight Drop in Unemployment;

Food-at-Home Index 25% Above its 2019 Average. https://www.newyorkfed.org/medialibrary/media/research/snapshot/Snapshot_July2023.pdf Overview of the July 2023 Snapshot * GDP growth slowed: Q1 GDP was about .5% below what it would been if since Q42019, it grew at a rate close to long-term forecasts. * Consumer

Federal Reserve Alert! Fed Releases Public sections of July 2023 Resolution Plans aka "Living Wills"

"Living Wills" for: Bank of America, Bank of New York Mellon Corp, Citigroup, Credit Suisse, Goldman Sachs, JPMorgan Chase, Morgan Stanley, State Street Corp, and Wells Fargo & Co. * Bank of America (PDF) * Bank of New York Mellon Corp (PDF) * Citigroup (PDF) * Credit Suisse (PDF)***** * Goldman Sachs (PDF)

Liquidity Fairy Alert! Bank Term Funding Program usage rose this week ($102.305B vs $101.959B on 7/5), marking the 6th straight week over $100B. It's looking more and more like there's an over-reliance on Fed Funding. Could this be a moral hazard?

Liquidity Fairy Alert! Bank Term Funding Program usage rose this week ($102.305B vs $101.959B on 7/5), marking the 6th straight week over $100B. It's looking more and more like there's an over-reliance on Fed Funding. Could this be a moral hazard?

Good afternoon Superstonk, I hope everyone's Thursday is going well! Borrowing from the Bank Term Funding Program is back on the increase! What we are monitoring: 1. Bank Term Funding Program (BTFP) 2. Discount Window/Primary Credit 3. "Other Credit Extensions" I hope to shed light

Federal Reserve Alert! Governor Christopher J. Waller in Speech: "monetary policy works mostly by influencing the public's view of financial and economic conditions well into the future, affecting spending and investment decisions."

So much for the invisible hand, he prefers to just guide it? https://www.federalreserve.gov/newsevents/speech/waller20230713a.htm Highlights: On Recent Policy Actions Waller supported the decision to keep the policy rate (the interest rate at which banks lend to each other) the same in June. * He felt

Federal Reserve Alert! Beige Book July 12, 2023: "many contacts reported an inability to fully pass on increased costs to consumers, which has compressed margins." Is the 'Greedflation' Peak in Sight?

https://www.federalreserve.gov/monetarypolicy/beigebook202307.htmOverall Economic Activity * Overall economic activity increased slightly since late May. * Five Districts reported slight or modest growth, five noted no change, and two reported slight and modest declines. * Reports on consumer spending were mixed; growth was generally observed in consumer services, but some