Some policymakers in the nation?s capital have urged the Federal Reserve banks of Boston and Dallas to consider people of color and women while selecting new presidents. Republicans led by Sen. Pat Toomey of Pennsylvania say the process should be left to the local bank boards.
Modern economic growth in the U.S. is dependent on credit creation ? which has perpetuated a cycle of suppressed yields and inflated asset prices. While credit creation has been accelerating away from GDP growth for the last 15 years with no signs of stopping, retirement investors are left in the intractable situation of watching the value of their savings erode. What can be done?
Sen. Elizabeth Warren, D-Mass., said questionable financial transactions by senior Federal Reserve officials ? two of whom have resigned ? cast doubt on Fed Chair Jerome Powell?s ability to steer the central bank as President Biden mulls whether to reappoint him.
Federal Reserve Bank of Dallas President Robert Kaplan cited his desire ?to eliminate any distractions? at the central bank just hours after his Boston Fed counterpart, Eric Rosengren, said he will leave earlier than planned because of a health issue. They had engaged in stock transactions that drew criticism in light of their knowledge about the Fed's pandemic response.
Data released Tuesday reflected a murky picture on the strength of the economy, but the market?s eyes were fixed on the Federal Reserve?s policy meeting in Washington, D.C.
The Federal Reserve said Wednesday in its Beige Book report that U.S. economic growth slipped to a more moderate pace between early July and the end of August.
Experts agreed that Federal Reserve Board Chair Jerome Powell acknowledged the Fed could start tapering this year and that it would have no implications for liftoff, but not everyone was satisfied with what they heard.
The economy continues to recover, with durable goods orders and consumer confidence suggesting strength, but concerns about the Delta variant of COVID-19 and continued supply-chain problems cloud the future outlook.
More of the same from the FOMC did little to move UST or munis. ICI reported the 17th consecutive week of inflows at $1.98 billion. July is looking good for municipal issuers.
With better-than-expected payrolls, economists still caution full recovery is a ways away. Muni participants are closely following how the Fed's action ? or inaction ? will affect the municipal market going forward.
A majority of the week's largest new issues priced at yields mostly at or around benchmarks as secondary trading did little to move scales. In economic data released Tuesday, the June consumer confidence index climbed, suggesting spending will rebound.
With various Federal Reserve officials airing their views since the Federal Open Market Committee?s latest meeting, it may take a while for members to reach agreement on tapering, a boon for municipals.
The Federal Reserve must be prepared to move if inflation continues to surprise to the upside, according to one Fed president, while another again stated a desire for the Fed to pull back on its accommodation.
Tuesday?s data may not be indicative of where the economy is going and will likely be written off by the Federal Open Market Committee at its meeting, analysts say.
Most analysts expect the Federal Open Market Committee will alter its Summary of Economic Projections and perhaps begin to talk about tapering, without offering clues when they'll begin cutting back on asset purchases.
Triple-A municipal benchmark yield curves were bumped one to two basis points, lagging a four basis point rally in U.S. Treasuries after weaker consumer sentiment and dovish comments from Fed officials moved equities lower.
Sen. Pat Toomey of Pennsylvania, the top Republican on the Banking Committee, told three Federal Reserve regional presidents that a series of events tied to the impact of racism on the job market and housing systems is not within the scope of the central bank.
While cryptocurrencies could have benefits, they have ?not served as a convenient way to make payments, given, among other factors, their swings in value,? said the head of the Federal Reserve. He also detailed imminent Fed research on a central bank digital currency.
While cryptocurrencies could have benefits, they have ?not served as a convenient way to make payments, given, among other factors, their swings in value,? said the head of the Federal Reserve. He also detailed imminent Fed research on a central bank digital currency.
Data released Tuesday show an improving economy, which continues to stoke fears of impending inflation. Muni investors await New Jersey's $1.57 billion transportation deal.
In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.
Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.
Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.
Log In Required
Publication Date