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There is broad agreement that asset size alone is not the best way to measure a bank's systemic footprint. But getting equally broad consensus on another, better approach could be difficult.
Federal Reserve Gov. Michael Barr said in a speech Thursday that he fears the gradual pace of price increases from tariffs being passed on to consumers may prolong the one-time inflationary effect of the tariffs to the point where it affects consumers' inflation expectations.
Yields on longer-dated debt are so high that even if the Fed continues hiking for longer investors still feel they'll be compensated.
The incoming administration chose a battle-tested policymaker who can draw on her nearly two decades at the Fed to help rebuild an economy still struggling from the coronavirus pandemic.
Mortgages outperformed over the week based on expectations that the Federal Reserve will initiate QE3 at its September meeting and a drought in supply. Through Thursday, excess return to Treasuries on Barclays MBS Index was +14 basis points which brought month-to-date performance to +27. Meanwhile, the current coupon spread to 10-year notes tightened five basis […]