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...inequality increasing savings and lower productivity and growth rates reducing the desire for investment....
...You see the same thing when you look at savings — the amount of money people have in checking and savings accounts across the income distribution. Look at people who make less than $25,000 a year....
...that half of muni-spending growth in 2023 went to investment, thanks to “a combination of slightly faster-than-expected spending from the bipartisan infrastructure law and a rush to spend pandemic-related federal...
...savings accounts have moved from .06 per cent in 2022 to a lordly .46 per cent today)....
...The flipside to higher interest rates is people also want more for their savings....
...ROE, short for return on equity, was bagged by the Astoria US Quality Kings ETF. The AdvisorShares Pure Cannabis ETF tried to smoke out the competition with YOLO, the acronym for “you only live once”....
...intuition for this view derives from the Levy-Kalecki identity, which holds that bigger government deficits must translate to higher corporate profits, if there no major changes in investment, private savings...
...This chart below uses the Federal Reserve’s senior credit officer survey net level as the proxy for credit availability....
...That changes the emphasis when thinking about monetary policy transmission, away from the idea that greater rewards for saving encourage more of it....
...Financial markets have adjusted their rate expectations in recent weeks, with the US Federal Reserve now forecast to cut rates more slowly....
...Following the debt accumulation of the second world wear, the US Federal Reserve pegged interest rates on government debt at a low level until 1951....
...His argument is that the excess savings built up during the pandemic acted as a wall separating the actions of the Fed from the private sector....
...Growth and employment remain strong — so strong, in fact, that expectations for Federal Reserve interest rate cuts are being pushed further into the future....
...All of which suggests the Federal Reserve will need to continue backstopping the Treasury market and the banking system....
...Although the personal savings rate ticked up to 3.8 per cent, it is still far below pre-pandemic levels. The personal savings rate in January 2020 was 7.9 per cent....
...Economic growth was also set to “slow markedly”, officials concluded per the minutes, following a surprisingly strong third quarter as consumers retrench in the face of dwindling savings stockpiles and souring...
...Another is the saving glut: huge amounts of savings in China and east Asia had to go somewhere and that pushed down rates....
...Jay Powell’s Federal Reserve dithered on raising interest rates until it had no choice but to act....
...US inflationary pressures are expected to have eased slightly in February, a development that would be welcomed by the Federal Reserve as it evaluates when to begin cutting interest rates this year....
...US reports gross domestic product growth later this month, it is expected to come in at a solid pace of at least 2 per cent for the seventh quarter in a row, defying the once universal expectation that Federal...
...Credit card delinquencies by consumers at large US banks have risen to their highest level since before the Covid-19 pandemic, underscoring the impact from rising interest rates and lower household savings...
...It is now far too big to export its savings surplus any longer A chart that matters The FT has updated its global inflation tracker, a real feast for data hounds....
...Whatever the reality is, it clearly matters, because the point at which these savings dry up might be the point at which consumers capitulate on spending and the Federal Reserve decides to call it a day...
...First, the rise of fixed-rate loans — and pandemic savings — have stunted the impact of rate rises....
...They have been able to charge more for loans because of the interest rates being increased by the Federal Reserve, but they haven’t been passing on these higher savings rates to depositors at the same rate...
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