With the rise in prices, workers are demanding higher pay to preserve their standard of living. Businesses, in turn, are hiking prices to compensate for those bigger wages. As a result, US central bankers are closely monitoring what’s become known as “supercore inflation,” or the prices in service industries. Wages…
Updated for 4th Quarter 2022 Ranks Over the next two years, we expect the number of banks issuing brokered CDs to grow, approaching the prior high of 1500 by 2024 (see Chart I). With the dramatic rise in 2 and 5-year yields, so have the yields offered on brokered CDs increased.…
US consumers prices rose sharply at the start of the year, a sign of persistent inflationary pressures that could cause the Fed to raise interest rates even higher than previously expected. The overall consumer price index climbed 0.5% in January, the most in three months, supported by rising energy and shelter.…
Forecasting a recession for a bank is key in determining the loan loss provision (predicting loan loss over the life of the loan) under CELA. As an example, JP Morgan Chase & Co, the biggest bank in the US, is setting aside more than $1 billion in preparation for potential…
Milton Friedman famously said: “Inflation is always and everywhere a monetary phenomenon, in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.” Chart I M2 Money Supply Growth Vs Inflation History 1943 – 2022 Chart I Source: Longtermtrends M2…
