Posts with tag inflation


Guest Writer, August 23 2023

The drenching Hurricane-turned-Tropical-Storm Hilary is forecast to leave a destructive swath up the western U.S. this week as relief workers in Maui continue their search for any signs of life among the 850 missing residents of Lahaina over 3,000 miles away.

Meanwhile, economic prognosticators are wondering what’s in store this weekend at the Kansas City Fed’s symposium in Jackson Hole, WY.

The annual summer conference, which will be held Thursday through Saturday, features a slew of speakers who will largely be preaching to a pre-occupied choir.

They will mostly pontificate their profligate theories (or, if you prefer, officiously wax poetic) about this year’s theme – “Structural Shifts in the Global Economy.”

Dispassionate and Fedspeak enough to escape the attention of most common Americans? You betcha!

Although the stream of papers slated to be delivered and discussed at the event have yet to be released, one thing is clear:

Perhaps the most compelling mantras underlying the Structural Shifts theme should be focusing on the storm debt – public and private – brewing in the U.S.

As Jennifer Sor suggests in a recent Business Insider article, troubles are already bubbling up to the surface “as loans pile up and borrower confidence falters.”

Banks Were an Early Sign

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Banks Fueling Financial Disaster

Guest Writer, November 15 2023

Once again, Pam and Russ Martens have grabbed our attention with another zinger.

In today’s Wall Street on Parade newsletter, they feature Michael Hsu, the acting director of the Office of the Comptroller of the Currency (OCC).

The OCC charters, regulates, and supervises national banks, federally chartered savings associations and federal branches and agencies of foreign banks in the U.S.

They stand beside the Federal Reserve as a major regulator of banking institutions.

Specifically, the Martens write about how Hsu “undermined [already declining] public trust in the U.S. banking system” when he approved JPMorgan Chase’s acquisition of failed First Republic Bank in May.

(By now, readers know that JPMorgan Chase is America’s largest – and, by some measures, the riskiest – bank in the nation.)

The Martens go on to note that Hsu’s response to that “collapse in public trust” was to, yes, issue a survey measuring public trust in, yes (again), banks.

The Martens tie much of Americans’ lack of trust to the number of unlawful acts committed by the largest of the too big to fail banks over the last 23 years.

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The Fed Dilemma

Bob Rinear, March 16 2024

I'm sure you all saw it. The PPI Thursday came in TWICE as hot as they expected. They thought we'd see prices rise 0.3, but no, it was 0.6. Even taking out food and energy it was hotter than expected.

That coincides with the latest CPI reading that was also hotter than expected. Wrapped up together we have two months of data showing that inflation has stopped "coming down" and is perking back up.

Well, what's the grand poo-bah Powell going to say about that? This coming week is a Two day FOMC meeting with Powell doing a press conference at the end of the second day. Well, in his speech to Congress a couple weeks back, he was very dovish, and said several things that pointed to them being ready to cut rates.

Many hoped he was going to start with the March meeting next week. But how can he? We've got back to back higher readings. Which means, I think...he's going to have to say something like "this is why we've been patient and have held things higher for longer, because we didn't want to get headfaked, cut rates too early and then have to hike them again."

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83 posts with tag inflation online