Federal Reserve Bank

Global Market Rout Spreads: VIX Marches Higher As China Stocks, Currency Plunge

The global rout resulting from tensions over the North Korean nuclear standoff continued on Friday following a third day of escalating verbal exchanges between Trump and Kim, with European and Asian shares tumbling as volatility across the globe spiked, with the selloff in US futures continuing albeit at a more modest pace.

Frontrunning: August 8

  • Tax Overhaul Effort Shaped by Debate Over Corporations (WSJ)
  • Funds target 'unknown' stocks as Wall Street cuts analyst jobs (Reuters)
  • GOP Plans Tax Compromise to Sidestep Democrats (BBG)
  • Few expect Trump's 15-percent corporate tax rate: Deloitte survey (Reuters)
  • Raid on Venezuelan Base Got Help From Active Officers (WSJ)
  • Hackers demand million in ransom for stolen HBO data (AP)

Key Events In The Coming Vacation Week: All About Inflation

With the traditional post-payrolls market lull setting in, and most trading desks taking a week or two off, it will be a relatively quiet week with attention turning to inflation data with releases in the US, China, Norway & Switzerland, a key factor as central banks consider if/when to tighten in the near future.

Even Schwab Is Warning Retail Clients Of "Danger Signs Rising"

"A solid earnings season should contribute to a continuation of the bull market in stocks. Dangers are lurking, however, and the possibility of a decent-sized pullback has grown over the past couple of months, in light of monetary policy and geopolitical uncertainties. "

US Equities: Unwinding The Yellen Leveraged Buyout

"Corporate credit spreads are the key indicator to watch, both in terms of the economy and the financial markets.  It’s a game of financial musical chairs. Ray Dalio, Janet Yellen and all of us are dancing.  When does the music stop?"

Is This Why The Fed Is Raising Rates???

As the Fed is in the midst of a rate hike cycle, it seems important to remember why this cycle is like no previous rate hike cycle.  The mechanics of this hiking cycle are completely unique and experimental...thus the outcome is far more of an unknown than "normal".

How The Fed Helps The US Spy On Foreign Governments

It's widely known that the Federal Reserve has been tasked by Congress with a "dual mandate" to maintain maintain stable consumer-goods prices, low unemployment and - oh yeah - buoyant equity prices.  However, as Reuters revealed on Monday, the central bank has another legally binding obligation that might upset some of its clients: Helping US intelligence agencies spy on foreign governments.