2019-06-19 09:27:00 Wed 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
San Francisco Fed CEO Mary Daly suggests that trade escalation is not the only risk in the global economy. Due to the current Sino-U.S. trade tension, the global economy seems to slow down quite a bit. Some other global economic issues call for resolution too. For instance, Brexit may result in negative consequences for Eurozone trade and financial capital exodus. Daly indicates that the U.S. economy may experience unforeseen challenges if business sentiment and economic data get out of sync. If business sentiment turns out to be negative, this negativity may become a self-fulfilling prophecy that may inadvertently lead to major fluctuations in real economic output.
Nevertheless, Daly reiterates that the U.S. economy operates near the long-term efficient level with 3.6% unemployment as inflation rises toward the 2% target. In the current macroeconomic scenario, the federal funds rate remains neutral. This outcome accords with the Federal Reserve dual mandate of both price stability and maximum sustainable employment.
The recent interest rate hikes help dampen extreme asset price gyrations and so contribute to financial market stabilization. At any rate, Daly emphasizes that it is important for the Federal Reserve to remain patient before the FOMC members consider the next interest rate adjustments.
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.
2019-10-19 16:35:00 Saturday ET

European economic integration seems to have gone backwards primarily due to the recent Brexit movement. Brexit, key European sovereign debt, and French and
2023-02-03 08:27:00 Friday ET

Our proprietary alpha investment model outperforms most stock market indices from 2017 to 2023. Our proprietary alpha investment model outperforms the ma
2018-08-27 09:35:00 Monday ET

President Trump and his Republican senators and supporters praise the recent economic revival of most American counties. The Economist highlights a trifecta
2018-01-13 08:39:00 Saturday ET

The Economist digs deep into the political economy of U.S. government shutdown over 3 days in January 2018. In more than 4 years since 2014, U.S. government
2019-09-01 10:31:00 Sunday ET

Most artificial intelligence applications cannot figure out the intricate nuances of natural language and facial recognition. These intricate nuances repres
2019-05-30 16:44:00 Thursday ET

AYA Analytica finbuzz podcast channel on YouTube May 2019 In this podcast, we discuss several topical issues as of May 2019: (1) Our proprietary alp