Inflation is moving in the direction that will be liked by the Fed
In June, the Personal Consumption Expenditures Index rose 3.0% year over year, down from 3.8% in May. Core PCE inflation rose 4.1%, below the projected 4.2%. Federal Reserve Chair Jerome Powell said core PCE inflation is “well above our longer-run goal of 2%.” The Fed boosted interest rates to 5.25%-5.50% to curb inflation. Wages and…
FDIC offers $18.5 billion in Signature Bank loans for sale.
The FDIC sold Signature Bank’s $18.5 billion loan portfolio to large private equity and investing firms, including 201 capital-call loans from Starwood Capital Group, Carlyle Group, Blackstone, Thoma Bravo, and Brookfield Asset Management. The sale was initiated after state authorities closed the bank in March due to regional bank problems. The July 25 offer is…
Lincoln National Corp’s need capital reconstruction
Lincoln National Corp’s commercial real estate exposure has raised concerns among hedge funds, with Mill Hill Capital shorting the company’s credit and Saba Capital holding its credit default swaps. The company’s CEO Ellen Cooper stated that the company aims to reduce leverage and increase capital. Mill Hill’s Chief Investment Officer, David Meneret, speculates that CRE…
According to authorities, the Fed’s ‘discount window’ should be included in bank contingency plans.
Federal banking regulators have advised US institutions to include the Federal Reserve’s discount window in their contingency funding plans. The discount window is an important tool for managing liquidity risk, as highlighted by the March bank failures. After the SVB and Signature Bank collapses, discount window borrowing reached a record $153 billion in March, forcing…
Gold is facing instant bearish after Powell speech
Gold prices fell to their lowest level in five weeks on Friday, with spot gold up 0.3% at $1,951.19 per ounce. Bullion fell 0.4% this week, its sharpest weekly drop since June 23. Market strategist Yeap Jun Rong said the higher drift in gold prices lacks conviction due to market participants’ indecisiveness ahead of the…
The Fed may raise the funds rate on next meeting
The Federal Reserve raised rates 25 basis points (bps) on Wednesday, citing high inflation. This marks the 11th rate hike in 12 meetings, raising the overnight rate to 5.25%–5.50%. Chair Jerome Powell suggested that the Fed may raise the funds rate at the September meeting if data warrants it, or hold steady if data is…
The Fed raises interest rates to 0.25%
The Federal Reserve raised its benchmark interest rate target range by 0.25%, leaving room for additional hikes this year. The fed funds rate rose to 5.25%-5.50%, the highest level since March 2001. Future rate hikes will depend on the economy and financial markets. The process of lowering inflation to 2% has a long way to…
US card company hope on china tourism growth
Visa and Mastercard, which rely on China to boost travel spending, experienced a poor first half of the year due to China’s economy losing momentum post-COVID-19. Both card companies reported China travel levels below pre-pandemic levels, with inward cross-border travel to China being 50% of 2019 levels and outbound nearly 70%. China’s economic recovery has…