Dismal's Smacks

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📈 Macroeconomics

Morgan Stanley's James Gorman to step down within the next twelve months.

https://www.axios.com/2023/05/19/morgan-stanley-james-gorman: Morgan Stanley CEO James Gorman will relinquish his title as CEO, and transition to the role of executive chairman within a year. Why it matters: Gorman's forthcoming departure from the powerhouse in investment banking and deals comes at a pivotal

Inflation Alert! April 2023 Rental Report: The median asking rent was $1,734, up by $4 from last month and down by $43 from the peak but still $348 (25.1%) higher than the same time in 2019 (pre-pandemic).

Source: https://www.realtor.com/research/april-2023-rent/ In April 2023, the U.S. rental market experienced single-digit growth for the ninth month in a row after fifteen months of slowing from a high of 16.4% growth in January 2022. Median rent across the top 50 metros was up just

Fed Governor Philip N. Jefferson: "Wage growth has continued to run ahead of the pace consistent with 2 percent inflation... Wage gains are welcome as long as they are consistent with price stability."

"But outside of energy and food, the progress on inflation remains a challenge." The U.S. Economic Outlook and Considerations for Monetary Policy Governor Philip N. Jefferson At the 2023 International Insurance Forum, National Association of Insurance Commissioners (NAIC) https://www.federalreserve.gov/newsevents/speech/jefferson20230518a.htm Highlights:

Inflation alert! Richmond Fed Governor Thomas Barkin: “I do want to learn more about what’s happening with all these lagged effects. But I also want to reduce inflation,” “And if more increases are what’s necessary to do that I’m comfortable doing that.”

Source: https://www.bloomberg.com/news/videos/2023-05-16/fed-s-barkin-on-inflation-banks-and-path-of-policy-video Article on interview: https://www.bloomberg.com/news/articles/2023-05-16/fed-s-barkin-says-he-s-willing-to-raise-rates-again-if-needed Federal Reserve Bank of Richmond President Thomas Barkin said he was still looking to be convinced that inflation has been defeated and that he’d support raising interest rates further

Inflation Alert! Cleveland Fed Governor Loretta J. Mester believes interest rates should go higher:

"And so the question, you know, in my mind is have we gotten to that rate yet? And at this point, given the data we've gotten so far, I would say no, I don't think we're at that rate yet." https://www.

Vice Chair for Supervision: "Federal Reserve supervisors did not fully appreciate the extent of the vulnerabilities as SVB grew in size and complexity."

"This meant that SVB remained well-rated through the summer of 2022, even as significant risk to the bank's safety and soundness were growing." https://www.federalreserve.gov/newsevents/testimony/barr20230516a.htm Vice Chair for Supervision Michael S. Barr Before the Financial Services Committee, U.S. House

From 1st quarter 2022 to 1st quarter 2023, total household debt has increased $1,205 billion to $17.05 trillion (+7.57%)

Mortgage balances ($864 billion), HELOC ($22 billion), Student loans ($14 billion), Auto loans ($93 billion), Credit Card debt ($145 billion), Other ($67 billion). Reddit Post