A few days ago Charles Schwab, the investment brokerage firm, announced that the number of new brokerage accounts soared 44% during the first quarter of 2017. More specifically, Schwab stated that individual investors are opening up stock trading accounts at the fastest pace the company has seen in 17 years. Anyone remember what happened 17 years ago?
Federal Reserve Bank of Dallas President Robert Kaplan had lots to say this morning that, for now, the market has chosen to ignore. He warned "we are highly leveraged" implicitly warning President Trump that the country’s ability to boost growth through debt is limited(thanks to President Obama's doubling of the national debt as The Fed held rates at zero during his term?)
On Monday, April 10, Janet Yellen will hold a previously announced speech at the Gerald Ford School Of Public Policy at the University of Michigan, the school announced on its website this morning. The speech is expected to last from 4pm until 5:15pm, and will be free and open to the public.
We can now close the case on who leaked that confidential, market-moving data to Medley global: it was Richmon Fed's Jeffrey Lacker, who while previously was expected to retire in October, is resigning effective today.
"The warning signs are there for anyone willing to see, and they are flashing red. Even cursory research into the numbers underlying our system will tell you that we’re on an unsustainable financial path. It’s simple math. And yet the system has proven far more durable than most people thought... The only reasonable explanation I can think of, is that the system is being held up by wishful thinking and willful ignorance."
"The divergence is stunning. Upside surprises appear to be completely driven by the soft data... we would not necessarily expect 'hard data' surprise indices to start racing higher if the factors behind the 2Q growth rebound remain narrowly confined to a few sectors as we expect..."
The key economic releases this week are the consumer confidence report on Tuesday, the third estimate of Q4 GDP on Thursday, and the PCE report as well as Personal Income & Spending data on Friday. In addition, there are several scheduled speaking engagements by Fed officials this week.