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.
2018-08-29 10:37:00 Wednesday ET
In an exclusive interview with Bloomberg, President Trump criticizes the World Trade Organization (WTO), proposes indexing capital gains taxes to inflation
2020-10-13 08:27:00 Tuesday ET
Agile lean enterprises strive to design radical business models to remain competitive in the face of nimble startups and megatrends. Carsten Linz, Gunter
2019-04-07 13:39:00 Sunday ET
CNBC news anchor Becky Quick interviews Warren Buffett in early-2019. Buffett explains the fact that book value fluctuations are a metric that has lost rele
2019-08-31 14:39:00 Saturday ET
AYA Analytica finbuzz podcast channel on YouTube August 2019 In this podcast, we discuss several topical issues as of August 2019: (1) Warren B
2019-01-25 13:34:00 Friday ET
Netflix raises its prices by 13% to 18% for U.S. subscribers. The immediate stock market price soars 6.5% as a result of this upward price adjustment. The b
2018-09-23 08:37:00 Sunday ET
Bank of America Merrill Lynch's chief investment strategist Michael Hartnett points out that U.S. corporate debt (not household credit supply or bank ca