Balance sheet cash flow equals the operating cash flow less financial cash flow, determined by changes in the balance sheet. If one is more negative than the other, or both are negative, then balance sheet cash flow is negative. Rise in the Number of Banks with Negative BSCF Demonstrates Risk The…
Since November, the Fed has been talking about inflation as the story of three categories: goods, housing, and non-housing services (NHS). The latter category, core NHS, comprises around half of core PCE expenditures.1 Comments from Jerome Powell, Fed Chairman “Finally, we come to core services other than housing. This spending category covers…
Brokered CDs Reaching New Highs in 2024 Deposit costs at banks reflect competition from yields on the 3-month T-Bill near 5%, and the 2-year at 4%, coupled with the upward pressure of another potential 25-basis point hike in the Fed funds rate in May. Together, these yields forecast rising deposit costs…
February’s growth rate in the Fed’s favorite gauge of inflation, “Core Services Ex Housing PCE” is expected to remain at 4.6% well into 2023, 190-basis points above the 2.7% required run rate in the aggregate that coincides with the 2% headline and core PCE target of the Federal Reserve. Table I Source:…
IDC Financial Publishing (IDCFP) measures two different time series in balance sheet cash flow (BSCF) as a percent of Tier I capital. Quarter-to-quarter change in balance sheet cash flow percent Tier I capital.Year-over-year change in balance sheet cash flow percent Tier I capital. Balance sheet cash flow equals the operating cash flow…
