Dismal's Smacks

🌙 ☀️

Sign in Subscribe

📈 Macroeconomics

Inflation Alert! Federal Reserve issues FOMC statement: the Committee decided to raise the target range for the federal funds rate to 5 to 5-1/4 percent.

Source: https://www.federalreserve.gov/newsevents/pressreleases/monetary20230503a.htm Economic activity expanded at a modest pace in the first quarter. Job gains have been robust in recent months, and the unemployment rate has remained low. Inflation remains elevated. The U.S. banking system is sound and resilient. Tighter credit conditions

Report to the Secretary of the Treasury: "Treasury’s current cash balance of $238 billion is already well below TBAC recommended levels, and significantly below what even the nation’s largest banks hold in available liquidity..."

"Treasury’s current cash balance of $238 billion is already well below TBAC recommended levels, and significantly below what even the nation’s largest banks hold in available liquidity despite managing significantly smaller balance sheets." Source: https://home.treasury.gov/news/press-releases/jy1461 May 3, 2023 May 2,

Secretary of the Treasury Janet Yellen Sends Letter to Congressional Leadership on the Debt Limit:

"After reviewing recent federal tax receipts, our best estimate is that we will be unable to continue to satisfy all of the government's obligations by early June, and potentially as early as June 1." Reddit Post

DTC Alert! Suspension of DTC Services – First Republic Bank, San Francisco. In connection with the events surrounding First Republic Bank, San Francisco, the below CUSIPs have been Globally Locked.

The FDIC and JP Morgan entered into a loss-share transaction on single family, residential and commercial loans it purchased of the former First Republic Bank.

The FDIC will share in the losses and potential recoveries on the loans covered by the loss–share agreement with JP Morgan. https://www.reddit.com/r/Superstonk/comments/134iami/fdic_alert_jpmorgan_chase_bank_national/ Loss-share transaction: Under an SLA, the FDIC absorbs a portion of the loss on

+$21 billion deposited in commercial banks in the last week (April 12th-April 19h). Since 2/22/2023, $492 billion in deposits have been pulled. $960 billion in deposits has been pulled in the last year.

https://fred.stlouisfed.org/series/DPSACBW027SBOG Domestically chartered commercial banks divested $87 billion in assets to nonbank institutions in the week ending March 29, 2023. The major asset item affected was the following: securities, $87 billion. Domestically chartered commercial banks divested $87 billion in assets to nonbank institutions in the

Inflation Alert! Bureau Economic Analysis (BED) data shows Consumers & Governments Embark on Epic Spending Binge!

The PCE price index (the Fed's barometer for inflation and insists is going back to 2%) increased 4.9% in the first quarter of 2023, compared to +4.4% in the 4th quarter of 2022. Source: https://www.bea.gov/sites/default/files/2023-04/gdp1q23_adv.pdf Highlights: