2018-02-15 07:43:00 Thu ET
federal reserve monetary policy treasury dollar employment inflation interest rate exchange rate macrofinance recession systemic risk economic growth central bank fomc greenback forward guidance euro capital global financial cycle credit cycle yield curve
Fed minutes reflect gradual interest rate normalization in response to high inflation risk. FOMC members revise up the economic projections made at the December 2017 committee forum. Many key economists and market watchers expect gradual further hawkish adjustments in U.S. monetary policy. These hawkish adjustments inevitably entail interest rate hikes that help constrain money supply growth near full employment. In effect, these gradual hawkish adjustments help better balance the inexorable and mysterious trade-off between inflation and unemployment.
As Treasury bond yields rise in response to this hawkish monetary policy stance, most major U.S. stock market indices such as Dow Jones, S&P 500, and NASDAQ decline as a result.
Several FOMC members remain cautious about high asset valuation and leverage within Corporate America. Numerous public corporations make productive use of debt and cash stockpiles with generous dividends and share repurchases. Further, excessive cash accumulation, high asset valuation, and incessant corporate debt usage breed financial contagion with minimal impact on real macro variates such as economic output, employment, and capital investment. This recent trend may or may not sustain in the long run. The resultant concern signals bouts of potential financial instability outside the financial system.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2019-11-07 14:36:00 Thursday ET

America expects to impose punitive tariffs on $7.5 billion European exports due to the recent WTO rule violation of illegal plane subsidies. World Trade Org
2019-06-07 04:02:05 Friday ET

The world seeks to reduce medicine prices and other health care costs to better regulate big pharma. Nowadays the Trump administration requires pharmaceutic
2018-01-17 05:30:00 Wednesday ET

European Union antitrust regulators impose a fine on Qualcomm for advancing its key exclusive microchip deal with Apple to block out rivals such as Intel an
2022-05-05 09:34:00 Thursday ET

Corporate payout management This corporate payout literature review rests on the recent survey article by Farre-Mensa, Michaely, and Schmalz (2014). Out
2017-02-25 06:44:00 Saturday ET

As the White House economic director, Gary Cohn suggests that the Trump administration will tackle tax cuts after the administration *repeals and replaces*
2018-04-13 14:42:00 Friday ET

Mike Pompeo switches his critical role from CIA Director to State Secretary in a secret visit to North Korea with no regime change as the North Korean dicta