Federal Reserve Bank of New York

New CME Bitcoin Futures And The Goldman Sachs Connection

... here we have a new Bitcoin futures contract, a derivative on the global phenomenon that is Bitcoin, whose settlement price is based on a reference rate calculated in London by an unknown company whose sole director is from Goldman Sachs.

Key Events In The Coming Week: Jobs, Brexit, PMI, IP And More

The first full week of December is shaping up as rather busy, with such Tier 1 data in the US as the payrolls report, durable goods orders and trade balance. We also get UK PMI data and GDP, retail sales across the Euro Area, as well as central bank meetings including Australia RBA and BoC monetary policy meeting.

Key Events In The Coming Week: Taxes, Inflation, Yellen, Draghi, Kuroda And Brexit

This week’s economic calendar features several key data releases and Fedspeak. The main data release in US include: CPI inflation, retail sales, industrial production, housing data and monthly budget statement.Away from the data the ECB’s Draghi, Fed’s Yellen, BoE’s Carney and BoJ’s Kuroda are all scheduled to participate on a policy panel hosted by the ECB.

Frontrunning: November 6

  • Gunman kills 26 in Texas (Reuters)
  • Trump Urges Japan to Buy More U.S. Military Equipment (WSJ)
  • Ex-Catalan leader granted freedom to campaign for independence (Reuters)
  • House begins revising Republican tax bill to quell dissent (Reuters)
  • Why the Next Four Days Will Be Crucial for the GOP Tax Bill (BBG)
  • Broadcom offers to buy mobile chipmaker Qualcomm for $103 billion (Reuters)

It's Official: NY Fed President Bill Dudley To Retire Mid-2018

The New York Fed today confirmed a weekend report that president Bill Dudley intends to retire from his position in mid-2018 to ensure that a successor is in place well before the end of his term. Dudley’s term ends in January of 2019 when he reaches the 10 year policy-limit in the role.

Global Stocks Drift Lower As US Futures Rebound From Overnight Scare, Oil At 2 Year Highs

Following an early shaky start, which saw the Hang Seng tumble as much as 1.6% driven by weakness in financials and real estate names following the latest warning by PBOC governor Zhou about "sudden, complex, hidden, contagious, hazardous" risks In markets and a decline in local real estate prices, and pressure global risk, US equity futures have recouped all losses and are back to unchanged on monday morning.

Low Interest Rates Subsidize Wealthy Households

The above thought experiment illustrates that central bank interest rate cuts are essentially tax cuts for the rich. To be consistent, those who oppose tax cuts for the rich should also stand against monetary policy that disproportionately benefits the richest households as well.

Goldman Interviews Former Head Of The Plunge Protection Team

"Purchasing a wider set of assets—as do some other central banks—might enable the Fed to have a larger effect on financial conditions and promote faster recoveries. But it would also involve putting more taxpayer money at risk and having an imprint on a wider set of risk premiums in the market."

Yes, You Should Be Concerned With Consumer Debt

The mirage of consumer wealth has been a function of surging debt levels. “Wealth” is not borrowed, but “saved,” and this is a lesson that too few individuals have learned. Until the deleveraging cycle is allowed to occur, and household balance sheets return to more sustainable levels, the attainment of stronger, and more importantly, self-sustaining economic growth could be far more elusive than currently imagined.