Should the crisis deteriorate further, with more bank seizures and further problems inside systemically financially important institutions, then the degree of financial shock is equivalent to 150 basis points of tightening. … READ MORE >
Joseph Brusuelas
Coordinated central bank action follows the Credit Suisse-UBS merger
Global central banks acted over the weekend to stem dollar funding pressures in financial markets as investors digested the forced merger of Credit Suisse and UBS. … READ MORE >
The great deposit migration and emergency borrowing at the Fed discount window
In the past week alone, the Federal Reserve’s loans outstanding to the financial system have ballooned to about $318 billion, up from $15 billion a week ago. … READ MORE >
How many jobs need to be sacrificed to tame inflation? Cost is rising, RSM models show.
Under our base case, a loss of 2.5 million jobs is consistent with a 5.1% unemployment rate, 3% inflation and a likely recession under current economic conditions. … READ MORE >
Global financial stress: Credit Suisse to borrow $53.7 billion from Swiss central bank
The infusion by Swiss National Bank calmed global markets, but financial stress remains elevated and is likely to build in the near term as the crisis of confidence in global banks endures. … READ MORE >
It’s a matter of trust: Financial conditions tighten on stability risks
The RSM US Financial Conditions Index sits at 1.4 standard deviations below neutral, indicating increases in volatility and risk priced into financial assets. … READ MORE >
February CPI: Balancing price stability vs. financial stability as inflation remains elevated
Inflation in the United States accelerated modestly in February, increasing by 0.4% on the month and by 6% on a year-ago basis. … READ MORE >
U.S. job creation remains robust, implying more aggressive rate hikes
February showed a 311,000 net change in total employment amid a 3.6% unemployment rate and 4.6% increase in average hourly earnings on a year-ago basis. … READ MORE >
The debt ceiling stand-off: Frequently asked questions
What exactly is the debt ceiling, and other frequently asked questions. … READ MORE >
RSM US Financial Conditions Index tightens as market sees a hard landing
The RSM US Financial Conditions Index inched down to 0.6 standard deviations below neutral as policymakers, investors and firm managers prepare for a period of higher interest rates and persistent inflation. … READ MORE >