On May 3, The Federal Reserve announced the decision to raise interest rates a quarter point to a range of 5-5.25%, the highest rate since 2007. During Wednesday’s press conference, Fed Chairman Jerome Powell alluded...
Read MoreOn April 21, Fannie Mae’s Economic and Strategic (ESR) Group released their April Outlook, which predicted stronger first quarter GDP growth than previously anticipated. Housing demand and home prices had remained consistent in 2022, largely...
Read MoreA recent research study in the Social Science Research Network found that only 6% of total bank assets were hedged against interest rate risk and the use of hedging actually declined in 2022, even as...
Read MoreBeginning with the April 7 release, the Department of Labor’s (DOL) calculation for initial jobless claims, which is used as a proxy for layoffs, reverts to multiplicative seasonal adjustment models. This pre-Covid methodology resulted in a revision...
Read MoreThe Conference Board’s survey, the Consumer Confidence Index, was unexpectedly higher in March, 104.2 when economists predicted 101.0, despite banking turmoil and expectations of recession. Respondents expressed continued confidence in jobs and increased expectations of...
Read MoreOn March 22, Federal Reserve Chairman Jerome Powell and officials at the Central Bank unanimously voted to raise interest rates by a quarter point for the ninth time in a year, effectively bringing the benchmark...
Read MoreIn a report released on March 13, Moody’s Investor Service announced the change of their outlook on the U.S. banking system from ‘stable’ to ‘negative.’ The statement accompanied actions on seven financial institutions, that were...
Read MoreOn March 6, FDIC Chairman Martin Gruenberg spoke at the Institute of International Bankers where he discussed the risks facing banks brought on by macroeconomic uncertainty. In discussing the trends that will likely affect banks’...
Read MoreThe Consumer Financial Protection Bureau (CFPB) released its updated report on Buy Now, Pay Later (BNPL) trends. BNPL usage is widespread among borrower with incomes of less than $50,000 and younger than 35. Not only do BNPL...
Read MoreThe Wall Street Journal reports that despite low unemployment at the end of 2022, 9.3% of auto loans extended to low credit score borrowers were delinquent (30 days late or more) according to Moody’s Analytics. This is...
Read MoreThe New York Fed’s quarterly report showed a $16.9 trillion increase in household debt, as credit card balances increased by $61 billion in Q4 2022. Credit card debt increased $130 billion since 2021, representing the largest year-over-year...
Read MoreDemand For Pre-Owned Vehicles is Slowing During and after the pandemic, the used-car market hit record high prices—the average cost was $31,095 in April 2022—as broken supply chains and chip shortages reduced inventory of new...
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