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Jerome Powell Delivers Remarks At ‘Not Stuffy’ Fed Event

"Candid and serious, yes. But not stuffy".

"Candid and serious, yes. But not stuffy".
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4 comments on “Jerome Powell Delivers Remarks At ‘Not Stuffy’ Fed Event

  1. Peter McGee says:

    Goldilocks story about 3 bears, no bulls ever mentioned.

  2. mfn says:

    I don’t care what certain people say, I like Jay Powell and hope he has a good, long run as Fed chair.

  3. vicissitude says:

    As for those record unemployment numbers, the Fed had nothing to do with that happening!

    As an example: The dirty little secret behind jobless claims: record-low numbers aren’t all they seem
    Dec. 9, 2018

    If first-time jobless claims are historically low because fewer laid-off workers are applying, it could become a bit tougher to sniff out a weakening economy. Initial claims, released by the Labor Department every Thursday, typically reflect how many workers were laid off the week before, providing the best real-time gauge on the state of the economy.

    In September, first-time claims sank to 202,000, lowest since 1969. The showing was especially impressive since the workforce is much larger than it was 50 years ago. On Thursday, the Labor department said claims fell 4,000 to 231,000 the week ending Dec. 1 . They’ve trended higher the past couple of months but are still well below the 300,000-plus weekly applications filed in the late 1990s and mid-2000s.

    https://www.usatoday.com/story/money/2018/12/06/jobless-claims-near-record-lows-but-its-not-just-fewer-layoffs/2163481002/

  4. vicissitude says:

    Although this is tedious and not as exciting as impeaching trump, here is a very large clue related to the Fed’s recent repo adventures. The breadcrumbs sprinkled around the Fed SRF seem connected to Treasury, but specifically to the deficit, which of course doesn’t matter … maybe?

    had posted about other related crumbs a few days ago from BPI’s Bill Nelson: “the Fed and Treasury elected to leave Treasury cash balances in the TGA rather than in deposits under the jointly run TT&L program even after interest rates began to rise, but there is no record of that decision in any FOMC minutes. Similarly, the Fed decided in 2015 to remove constraints on foreign official counterparties’ ability to vary the size of their investments in the Foreign Repo Pool; again, though, we cannot find this decision reflected in the FOMC minutes.”:

    ==> Chicago Fed Letter, No. 395, 2018

    ” … Second, as the figure shows, the Treasury occasionally reduces the account balance below the $150 billion minimum that it ordinarily targets. These reductions generally occur when the Treasury approaches the debt ceiling—a limit set by Congress on the amount of money the government can borrow. Similar to a household that wants to pay its bills without taking out a loan, the Treasury, when it faces a tight debt limit, must spend down its checking account until Congress allows it to borrow more. These factors mean that if the Treasury maintains its current approach to cash management, the Federal Reserve’s liabilities to the Treasury in future years will be both larger and more volatile than they were before the financial

    Second, while the Fed remits virtually all of the earnings on its assets to the Treasury, it historically has retained some earnings as capital. Until 2015, the retained surplus was set equal to the capital paid in by commercial banks. Thus, the Fed’s total capital—the amount paid in by commercial banks plus the retained surplus—grew in proportion to the size of the banking system, as shown in figure 4. However, in 2015 Congress passed a law limiting the Fed’s surplus to $10 billion, and in February 2018, Congress further reduced the limit to $7.5 billion. To comply with the limit, the Fed transferred some of its surplus to the Treasury, reducing the amount of total capital. Going forward, the retained surplus will remain at $7.5 billion, while capital paid in by commercial banks will continue to reflect the size of the banking system. ”

    https://www.chicagofed.org/publications/chicago-fed-letter/2018/395

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