2018-12-05 09:38:00 Wed ET
stock market competition macrofinance stock return s&p 500 financial crisis financial deregulation bank oligarchy systemic risk asset market stabilization asset price fluctuations regulation capital financial stability dodd-frank
Federal Reserve publishes its inaugural flagship financial stability report. Fed Chair Jerome Powell applauds both low inflation (2%) and low unemployment (3.7%) as evidence of a robust U.S. economic outlook. Federal Reserve aims to continue the gradual interest rate hike to help the U.S. economy operate near full employment as the inflation rate rises above the symmetric 2% target threshold. The first-ever financial stability report warns of the economic dangers that lurk in corporate debt. Investors exhibit a high tolerance for risks in business debt as the corporate-debt-to-GDP ratio hits the historically high ratio of 0.45 with some signs of deterioration in credit standards. The same financial stability report finds less worrisome aspects in the U.S. financial system. Low household leverage better aligns with aggregate income, and the systemically-important financial institutions (SIFIs) carry higher equity capital buffers with liquid assets. Moreover, SIFIs have passed the Federal Reserve annual macro stress tests as of mid-2018.
Also, broker-dealer leverage is below the pre-crisis levels; insurers face favorable solvency positions; and money-market funds become less vulnerable to bank runs. Overall, the U.S. financial system seems sound and efficient, but high corporate leverage may crowd out public debt accumulation. The Trump administration thus needs a fair bit of fiscal discipline and prudence.
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.
2019-05-15 12:32:00 Wednesday ET

The May administration needs to seek a fresh fallback option for Halloween Brexit. After the House of Commons rejects Brexit proposals from the May administ
2021-02-01 10:19:00 Monday ET

In recent times, the International Monetary Fund (IMF) predicts that the fiscal-debt-to-GDP ratio of most rich economies would rise from 95% in 2018 to 135%
2019-07-11 10:48:00 Thursday ET

France and Germany are the biggest beneficiaries of Sino-U.S. trade escalation, whereas, Japan, South Korea, and Taiwan suffer from the current trade stando
2016-10-01 00:00:00 Saturday ET

We can learn much from the frugal habits and lifestyles of several billionaires on earth. Warren Buffett, Chairman and CEO of Berkshire Hathaway, still l
2018-03-29 14:28:00 Thursday ET

Share prices tumble for technology stocks due to Trump's criticism of Amazon's tax avoidance, Facebook user data breach of trust, and Tesla autopilo
2019-07-07 18:36:00 Sunday ET

The Chinese central bank has to circumvent offshore imports-driven inflation due to Renminbi currency misalignment. Even though China keeps substantial fore