Key Takeaways1 Headline unemployment number rose from 3.4% to 3.7% and the establishment survey showed 339,000 jobs added in May, a very strong showing.Surprisingly, adjusting household employment to the payroll concepts provided 394,000 jobs in May, greater than the 339,000 jobs in the establishment survey. The difference between the payroll and…
Updated for 1st Quarter 2023 RanksOver the next two years, we expect the number of banks issuing brokered CDs to grow to 1,600 by 2024, exceeding the prior high of 1500 (see Chart I). With the dramatic rise in 2 and 5-year yields, so have the yields offered on brokered…
Financial conditions and lending standards have become stricter than they were during the free-money era of Covid when deposits costs were low. The financial stress that spiked briefly during the SVB collapse, subsided again to easier levels but not as easy as during the pandemic.1 One of the products that came…
Reported PPI Raised Estimate for Core PCE Ex Housing Inflation to 4.7%, up from 4.6% in March The majority of the Personal Consumption Expenditures (PCE) inflation is derived from the Consumer Price Index (CPI) data and the Producer Price Index (PPI). Additional components come from the Import Price Index (IPI) and…
Summary of Bank Failures Review of Silicon Valley Bank, Signature Bank and First Republic Bank by the Fed revealed management relied too heavily on uninsured deposits and invested too much in long-term bonds that declined in value as interest rates climbed.1 Relaxed rules and regulatory easing allowed for these banks to…
