Here are some brief impressions about this morning’s papers at the Federal Reserve conference.
Category Archives: financial markets
Update on the fed funds market
As noted by Calculated Risk and William Polley, the last few days we’ve seen the return of slightly more normal behavior in the overnight market for fed funds.
One perspective on approaching the current situation
Since Jim laid out some of the proposals for addressing the mortgage problem, I thought I’d put in my two cents worth.
Solutions to the mortgage problem
Quick links to a few of the suggestions out there on what to do about pending mortgage defaults.
Latest economic indicators
New home sales picked up in July, and new orders for durable and capital goods grew strongly. But that was then and this is now.
Worse than 1998?
From IDEAGlobal, FX Alert, August 21:
Where’s the risk?
Usually an economic downturn is associated in a big increase in the spread between corporate and Treasury yields. This spiked pretty dramatically last week, but still has a long way to go.
Another roller coaster week
Glad I wasn’t trying to provide a play-by-play explanation of fed funds futures last week. But whatever was going on, we seemed to end up with the same conclusion with which the week began.
What is a liquidity event?
It was an exciting week in financial markets, including some dramatic central bank interventions in short-term money markets.
Interpreting fed funds futures
Despite what you may have read elsewhere, the probability of a fed funds rate cut has increased significantly over the last few weeks.