Federal Reserve Tag Archives

Economic and Fixed Income Insights, March 31, 2020

Markets have taken a more positive tone over recent trading days with the Federal Reserve/s “whatever it takes” quantitative easing measures and the passing of a historic $2 trillion relief package.  Equities rallied on the week, and municipal yields reversed dramatic upswings from the week prior.  Yields remain volatile, but the primary offering market is starting to see some activity returning after being gridlocked by a liquidity crunch.

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Economic and Fixed Income Insights, March 24, 2020

Markets have calmed somewhat in the face of the pandemic caused by the coronavirus, as emergency actions continue to be taken. The Federal Reserve expanded its quantitative easing commitment regarding asset purchases, with no limits on the amount of assets to be purchased, nor a limit on how long the Federal Reserve would be purchasing them. In addition, the Senate came to an agreement for a stimulus package totaling nearly $2 trillion.

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Economic and Fixed Income Insights, March 3, 2020

The market continues to experience a tremendous amount of volatility surrounding COVID-19. The Federal Reserve made an emergency 50 basis point rate cut Tuesday morning, the first rate cut between scheduled policy meetings since the 2008 financial crisis. The U.S. Treasury market continues to rally to record low yields as investors seek relative safety.

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OCC Releases CRA Proposed Rule

Last week the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) released a proposed rule that would modernize the Community Reinvestment Act (CRA) Regulations. The proposal would overhaul CRA assessment boundaries, criteria for eligible CRA activities, and how banks are scored overall for their performance.

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Economic and Fixed Income Insights, September 17, 2019

In a widely anticipated move, the Federal Reserve cut rates by another quarter-point, setting the target range for the federal funds rate at 1.75 – 2.00 percent.  In their summary statement, the Federal Reserve maintained a generally positive outlook of both the labor market and household consumption, but noted a decline in both exports and business spending. According to the “dot plot,” officials were split on the appropriate future path for rates. 

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Economic and Fixed Income Insights, September 3, 2019

On Tuesday, the Institute for Supply Management Manufacturing Index unexpectedly declined from 51.2 to a reading of 49.1 in August, the lowest level since January 2016, and marking the first contraction (a reading below 50) in three years. As the global manufacturing slump extends to the U.S., investors are betting on larger Federal Reserve rate cuts coming before year-end. According to Bloomberg, the probability of a 50-basis point cut later this month has jumped from 7 percent to 30 percent.

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