Loading...
US financial conditions have eased back to pre-Fed meeting levels, reversing the 'higher-for-longer' signal that contributed to the recent rise in long-term yields. Goldman Sachs also reported that financial conditions have loosened. Federal Reserve Governor Lisa Cook stated that expectations of near-term policy rates are not driving the climb in long-term rates. Cook also highlighted the soundness and resilience of the banking sector and the need to enhance the resilience of large banks. She expressed hope that current policy settings are restrictive enough to return inflation to 2%. Cook mentioned that rising yields are not tied to the monetary policy outlook. She also discussed the risks in the financial system and the potential decline in commercial real estate prices if commercial mortgage delinquency rates force sales. Cook noted that the household sector looks resilient, but there are emerging signs of stress for those with weak credit.
FED'S COOK: FED TRYING TO BALANCE TWO SIDED RISKS IN HOPES OF SOFT LANDING
π΄ FED'S COOK: THE FED IS TRYING TO BALANCE TWO SIDED RISKS IN HOPES OF A SOFT LANDING.
π΄ FED'S COOK: I HOPE THAT CURRENT POLICY SETTINGS ARE RESTRICTIVE ENOUGH TO RETURN INFLATION TO 2%.
πΊπΈ FED'S COOK SAYS RISING YIELDS NOT TIED TO MONETARY POLICY OUTLOOK The recent rise in long-term U.S. bond yields does not seem to have been driven by investor expectations of further interest rate increases, Federal Reserve Governor Lisa Cook said on Monday, drawing a keyβ¦ https://t.co/zjWSsNRmHh https://t.co/2pHaipZuWV
FEDβS COOK: EXPECTATIONS OF NEAR-TERM POLICY RATES DO NOT APPEAR TO BE DRIVING CLIMB IN LONG-TERM RATES
FED'S COOK SAYS FINANCIAL SYSTEM RISKS HAVE RISEN IN RECENT YRS
π΄ FED'S COOK: THE FED CANNOT ANTICIPATE ALL RISKS, BUT CAN BUILD RESILIENCE TO SHOCKS, PARTICULARLY IMPORTANT TO ENHANCE RESILIENCE OF LARGE BANKS.
π΄ FED'S COOK DOESN'T COMMENT ON MONETARY POLICY OR RATE OUTLOOK.
FED'S COOK: IN TERMS OF DEBT, HOUSEHOLD SECTOR LOOKS 'QUITE RESILIENT'
π΄ FED'S COOK: BUSINESS BORROWING IS AT HIGH LEVELS, BUT MEASURES OF DEBT SERVICING CAPACITY REMAIN STRONG OVERALL DUE TO PROFITS AND LIMITED IMPACT OF HIGH INTEREST RATES SO FAR.
FED'S COOK: FOR SOME BORROWERS DEBT SERVICE CAPACITY HAS BEGUN TO SHOW SIGNS OF WEAKNESS
FED'S COOK: RESIDENTIAL AND COMMERCIAL PROPERTY PRICES REMAIN ABOVE LEVELS 'HISTORICALLY ASSOCIATED WITH FUNDAMENTALS'
π΄ FED'S COOK: IN TERMS OF DEBT, HOUSEHOLD SECTOR LOOKS QUITE RESILIENT, THOUGH THERE ARE EMERGING SIGNS OF STRESS FOR THOSE WITH WEAK CREDIT.
FEDβS COOK: EXPECTATIONS OF NEAR-TERM POLICY RATES DO NOT APPEAR TO BE DRIVING CLIMB IN LONG-TERM RATES
π΄ FED'S COOK: FOR SOME BORROWERS, DEBT SERVICE CAPACITY HAS BEGUN TO SHOW SIGNS OF WEAKNESS.
π΄ FED'S COOK: BANKING SECTORS REMAINS IS SOUND AND RESILIENT OVERALL, ACUTE STRESSES HAVE ABATED.
π΄ FED'S COOK: EXPECTATIONS OF NEAR-TERM POLICY RATES DON'T APPEAR TO BE DRIVING RISE IN LONG-TERM RATES.
π΄ FED'S COOK: RESIDENTIAL AND COMMERCIAL PROPERTY PRICES REMAIN ABOVE LEVELS THAT ARE HISTORICALLY ASSOCIATED WITH FUNDAMENTALS.
π΄ FED'S COOK: RESIDENTIAL AND COMMERCIAL PROPERTY PRICES REMAIN ABOVE LEVELS HISTORICALLY ASSOCIATED WITH FUNDAMENTALS.
π΄ FED'S COOK: IF COMMERCIAL MORTGAGE DELINQUENCY RATES FORCE SALES, COMMERCIAL REAL ESTATE PRICES COULD DECLINE SHARPLY.
Financial conditions have loosened last week, per Goldman https://t.co/z431kRjYb4
In just 3 days this week, US financial conditions eased back to where they were before the Fed meeting on Sep 20, which sent the "higher-for-longer" signal that many link to the rise in long-term yields in recent weeks. The Fed's "higher-for-longer" went out the window this week. https://t.co/blDOJiAdEj