Economic Commentary
Incremental progress emerging in the banking sector fallout
ECONOMY & POLICY March 20, 2023 CIO Larry Adam outlines the positive events that are outweighing negative developments and looks at dynamics to focus on in the week ahead. While the financial markets and headlines remain volatile, there has been some incremental positive momentum. Review below some of the positive events that outweigh the […]
A difficult job becomes even more difficult
ECONOMY & POLICY March 17, 2023 Chief Economist Eugenio J. Alemán discusses current economic conditions. Monetary policy, ever difficult to conduct, became even more difficult over the last week as one of the most difficult processes in banking came to fruition for one bank and brought down another bank in the process: a bank […]
Recent bank failures a potential game-changer for the Fed
ECONOMY & POLICY March 13, 2023 Regulators’ prompt response and the creation of a new lending facility should limit broader market fallout from recent bank failures, notes Chief Investment Officer Larry Adam. It is often said that the Federal Reserve (Fed) tightens until something breaks. In fact, history is peppered with examples of financial accidents caused […]
Monetary cycle versus fiscal cycle: What is the difference?
ECONOMY & POLICY March 10, 2023 Chief Economist Eugenio J. Alemán discusses current economic conditions. The Federal Reserve (Fed) conducts monetary policy through its main instrument, the federal funds rate, which is the rate banks charge each other in the overnight market. Quantitative easing/tightening, e.g., the buying/selling of Treasurys as well as mortgage-backed securities […]