If the transfer of money from the Fed's Reverse Repo Facility back into banks is ending, the full effects of quantitative tightening will reassert themselves and bring much tighter liquidity for financial markets.
Today's topics include with a yield to manage...active bond funds come into the spotlight, more coming around to no cuts, does the Fed have a reliable model of inflation?, the state of the yield curve inversion, basis trade risk turns heads again, money market assets fall on tax season, pensions allocating away from stocks, mortgage rates at highest level this year, private market risks, and crypto regulation
Inflation-adjusted retail sales remain below their peak from March 2021.
The BLS samples both continuing and new tenants to create the subcomponent of CPI known as rent of primary residences. It also offers a lesser known measure of rent that only samples new tenants. The former is meant to capture rent inflation for the average consumer, but the latter offers a more current view on where rents are heading.
Since May 2020, foreign-born workers have accounted for over 36% of total employment growth in the United States. This is almost double their share of the labor force.
The fed funds market is currently pricing in two rate cuts by April 2025 and five rate cuts by April 2026.
The Fed's cumulative losses since September 7, 2022 now total roughly $164 billion.
Bernard Arnault has held the crown of world's richest for roughly a month now.
A long-term look at temperature anomalies since 1850
Some interesting charts from our recent posts
In the latest installment of Talking Data, Jim discusses the bond market's year-to-date performance.