Funds & Fire Sales

Funds & Fire Sales

Earlier today, The New York Fed’s Liberty Street blog posted a disconcerting article about the risks that open-end funds, such as mutual funds and hedge funds, can experience when high numbers of investors demand their money back at the same time. The post — Are Asset Managers Vulnerable to Fire Sales? — starts by debunking a […]

Fed Agrees — On Uncertainty

Fed Agrees — On Uncertainty

photo: doug turetsky Fed minutes from the January 26th & 27th policy meeting released earlier today could be summed up, to a first order approximation, as expressing uncertainty, with a bias to the downside. To wit, from the Current Conditions and the Economic Outlook: “Participants discussed whether their current assessments of economic conditions and the medium-term […]

ZIRP Ends Unanimously

The Federal Reserve ended its zero interest rate policy today with a unanimous vote by the FOMC to raise the federal funds rate. From the Fed statement:“The Committee judges that there has been considerable improvement in labor market conditions this year, and it is reasonably confident that inflation will rise, over the medium term, to its 2 […]

October Jobs Jump Does Not Mean the World has Changed

Last Friday, many news headlines screamed about a massive beat on the Nonfarm Payrolls number. I spoke with Kevin Harris, a Director on the North America team at EconoMonitor’s sister company, Roubini Global Economics, who provided context on the NFP number and the broader trend that it represents. Nonfarm payrolls surged 271,000 in the month […]

Grim Tidings from Larry Summers — And the Data

Larry Summers has a dark view of the global economy. In an opinion piece for the Financial Times, Summers describes the dangers facing the global economy as the highest since 2008 — and he is quite straightforward about the risks he sees ahead: “The problem of secular stagnation — the inability of the industrial world to grow […]

Don’t Like the Pope? Go to College

Here’s a clever & timely graphic on the final day of the pope’s visit to NYC: A new Pew Research Center survey shows a clear correlation between higher levels of education and having a favorable view of Pope Francis. Data Curated by and sourced from Gracenote. (Original data from Pew Research Center.)