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.
2018-12-19 17:41:00 Wednesday ET

Tencent Music Entertainment debuts its IPO on NYSE to strike a chord with stock market investors. Tencent Music goes public and marks the biggest IPO by a m
2024-03-26 09:30:00 Tuesday ET

Stock Synopsis: ESG value and momentum stock market portfolio strategies Since 2013, we have been delving into the broad topics of ESG (Environmental, So
2017-05-13 07:28:00 Saturday ET

America's Top 5 tech firms, Apple, Alphabet, Microsoft, Amazon, and Facebook have become the most valuable publicly listed companies in the world. These
2019-03-03 10:39:00 Sunday ET

Tech companies seek to serve as quasi-financial intermediaries. Retail traders can list items for sale on eBay and then acquire these items economically on
2023-03-14 16:43:00 Tuesday ET

Several feasible near-term reforms can substantially narrow the scope for global tax avoidance by closing information loopholes. Thomas Pogge and Krishen
2019-09-03 14:29:00 Tuesday ET

Due to U.S. tariffs and other cloudy causes of economic policy uncertainty, Apple, Nintendo, and Samsung start to consider making tech products in Vietnam i