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Washington, DC CNN —Florida is America’s inflation hotspot, thanks to a persistent problem with sky-high housing costs. The Miami-Fort Lauderdale-West Palm Beach area has the highest inflation rate of metro areas with more than 2.5 million residents, with a 9% inflation rate for the 12 months ended in April. Urban Hawaii had the second lowest inflation rate at 2% — mirroring the Federal Reserve’s target for its preferred inflation gauge, the Personal Consumption Expenditures index. A vexing inflation problem in the Sunshine StateIn Florida, the state’s growing population has been pushing up inflation — particularly via housing costs. Even though the Twin Cities’ inflation rate is currently the lowest among major cities, it might not feel that way to residents, Schipper said.

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☆ In the Market: Amid the calm, the Fed brews the next storm
▼ + stars: | 2023-05-29 | by ( Paritosh Bansal | ) www.reuters.com time to read: +4 min

Earlier this month, Chairman Jay Powell said the Fed's monetary policy and financial stability tools were "working well together," allowing it to support banks and pursue price stability. But several people in the market believe not only is the regional banking sector still under stress, multiple other risks to financial stability also remain. Tighter monetary policy could well cause them to blow up or worsen the impact of other shocks, such as debt ceiling negotiations. "The Fed has no desire to conduct monetary policy through financial crises," said Wendy Edelberg, director of The Hamilton Project at the Brookings Institution. In its most recent financial stability report earlier this month, the Fed listed several areas of concern, including life insurance and some types of bond and loan funds.

☆ Debt ceiling crisis: How a US default would ricochet around the world
▼ + stars: | 2023-05-26 | by ( Hanna Ziady | ) edition.cnn.com time to read: +9 min

But if it does, it could make the 2008 global financial crisis feel like a walk in the park. The consequences are frightful.”The belief that America’s government will pay its creditors on time underpins the smooth functioning of the global financial system. During the 2011 standoff over raising the US debt ceiling, the S&P 500 index of leading US shares plunged more than 15%. “It’s unclear in a Treasury default crisis whether the Fed could do enough even with the types of efforts it deployed in March 2020,” Obstfeld said. “A default would be a message to investors all around the world of eroding confidence in America,” he added.

☆ Private bankruptcy filings are blowing past their COVID-era peaks as credit stress builds for small businesses
▼ + stars: | 2023-04-01 | by ( Carla Mozée | ) www.businessinsider.com time to read: +5 min

Private bankruptcy filings this year have surpassed a peak set in the early stage of the pandemic, UBS said. So far in 2023, private bankruptcy filings have outstripped a peak set in the early stage of the COVID pandemic by a wide margin. Bankruptcy hot spots include the real estate industry, which has led this year's increase in private bankruptcy filings. The UBS Evidence Lab Corporate Bankruptcy Monitor tracks US corporate chapter 7, 11, and 15 bankruptcy filings. After sifting through data, UBS outlined several takeaways, including that private bankruptcy filings are led by the real estate, chemicals, healthcare, and retail industries.

“I have argued for years that the biggest banks in the world are still too big to fail. In practice, however, the economic damage would be considerable.”Keller-Sutter was at the center of a government-orchestrated rescue of Credit Suisse by its larger rival UBS (UBS) earlier this month. They were designed to make it possible to wind down a big bank without destabilizing the financial system or exposing taxpayers to the risk of losses. Although some investors in Credit Suisse bonds lost everything, Swiss taxpayers are still on the hook for up to 9 billion Swiss francs ($9.8 billion) of potential losses arising from certain Credit Suisse assets. The rest is lent out at higher interest rates or invested, because that’s how big banks make most of their profit.

“I have argued for years that the biggest banks in the world are still too big to fail. In practice, however, the economic damage would be considerable.”Keller-Sutter was at the center of a government-orchestrated rescue of Credit Suisse by its larger rival UBS (UBS) earlier this month. Global standards for dealing with teetering “too big to fail” banks were key a part of the package of rules introduced after the global financial crisis. They were designed to make it possible to wind down a big bank without destabilizing the financial system or exposing taxpayers to the risk of losses. The rest is lent out at higher interest rates or invested, because that’s how big banks make most of their profit.

☆ Premarket stocks: Commercial real estate is in trouble. Why you should be paying attention
▼ + stars: | 2023-03-27 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

New York CNN —Economists are growing concerned about the $20 trillion commercial real estate (CRE) industry. After decades of thriving growth bolstered by low interest rates and easy credit, commercial real estate has hit a wall. Before the Bell spoke with Xander Snyder, senior commercial real estate economist at First American, to find out. Before the Bell: Why should retail investors pay attention to what’s going on in commercial real estate right now? So the health of the market has an impact on the larger economy, even if you’re not interested in commercial real estate for commercial real estate’s sake.

☆ Analysis: With record diversity on their boards, Fed bank chiefs see lower chances of policy error
▼ + stars: | 2023-02-24 | by ( Ann Saphir | ) www.reuters.com time to read: +8 min

Fed bank directors generally stay out of the limelight, but many U.S. central bankers view them as a critical resource. "I think the probabilities are far higher of achieving that gentle transition, that smoother transition," San Francisco Fed President Mary Daly told Reuters in an interview. This year, of the 108 spots on the 12 Fed bank boards, 44% are filled by women, and 41% by people of color, a review of the data shows. Still, a majority of the Fed's economists are white men, as are its top two monetary policymakers: Powell and New York Fed President John Williams. Hispanics and Latinos, Menendez notes, are a fast-growing segment of the population but are underrepresented at the Fed at all levels, including on Fed bank boards.

☆ Premarket stocks: Here's what keeps Jerome Powell up at night and interest rates high
▼ + stars: | 2023-02-08 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

Structural changes in the labor market: The US economy added an astonishing 517,000 jobs in January, blowing economists’ expectations out of the water. “The labor market is extraordinarily strong,” he said. Core services inflation: Powell noted that he’s seeing disinflation in the goods sector and expects to soon see declining inflation in housing. Service-sector inflation, which is more sensitive to a strong labor market, is up 7.5% from the year prior through the end of 2022, and has not abated, he said. Tech layoffs, Big Oil and soft landings: What investors are watching▸ The labor market is strong, but tech layoffs keep coming.

☆ Forgotten parts of the market lead the way in 2023 as advisors wrestle with how to play the economy
▼ + stars: | 2023-02-07 | by ( Bob Pisani | ) www.cnbc.com time to read: +5 min

Everyone here is amazed at how forgotten segments of the market have rebounded in 2023: international, growth, small cap and bonds. Advisors here are having a hard time wrapping their heads around the idea that there would be a recession ins 2023, and now maybe not. "With real wage growth, large payroll growth and earnings beating expectations it equals a soft landing at worst and maybe no recession near term." Most advisors here are coming to grips with Powell's insistence the Fed will not lower rates this year. Their Equal Weight S & P 500 ETF (RSP) has also attracted significant inflows from investors wary of market cap weighted indexes.

☆ Inflation: Fed's Neel Kashkari says prices are still too high
▼ + stars: | 2023-02-07 | by ( Paul R. La Monica | ) edition.cnn.com time to read: +4 min

New York CNN —Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, understands that consumers are still struggling to deal with high prices. Kashkari told CNN’s Poppy Harlow Tuesday that he knows first hand how expensive many consumer goods and services are. Job market strength fueling more inflationKashkari acknowledged that inflation pressures are easing, but said the Fed is still not comfortable with how high prices are, particularly for services. He told Harlow he’s penciling in short-term rates as high as 5.4% before pausing. It’s hard to have a recession when the job market is still so robust, he told Harlow.

☆ This 29-year-old CEO is constructing apartment buildings out of factory-produced modules, and it might make homes more affordable for renters
▼ + stars: | 2023-01-02 | by ( Robert Davis | ) www.businessinsider.com time to read: +5 min

Modular construction can make housing more affordable by delivering units at a lower cost, he says. Economies of scale not only reduce material costs, but they can also reduce waste generated during construction, Lawrence added. "Modular construction has the potential to provide housing at a lower cost and deliver buildings in a more cost-effective way than traditional sticks-and-bricks construction," Lawrence said. These apartments are also hitting the market at a time when real wages in Minneapolis are decreasing because of inflation. "We've proved that there are real cost and time savings associated with modular construction," Lawrence said

☆ Black homeowners pushed out of one Baltimore block show how Wall Street banks failed to lend money they had promised, a Bloomberg investigation shows
▼ + stars: | 2022-12-26 | by ( Alcynna Lloyd | ) www.businessinsider.com time to read: +6 min

Banks promised to invest in Black communities after they were hit by the 2008-2009 financial crisis. The block stands as a glaring reminder of the broken promises made by some of Wall Street's biggest banks to support America's Black homeowners, a recent Bloomberg investigation shows. As of October 2021, according to the US Census Bureau, 45% of Black Americans owned homes, which is nearly 30 points below the rate of white Americans: 74.6%. On Walbrook Avenue, the absence of large lenders has left many locals without a lifeline. After the 2008-2009 financial crisis, several financial institutions made pledges to invest billions of dollars to support Black homeownership.

☆ Long Covid is distorting the labor market — and that's bad for the U.S. economy
▼ + stars: | 2022-12-08 | by ( Greg Iacurci | ) www.cnbc.com time to read: +13 min

She eventually learned that the balance issues and ear pain resulted from a damaged vestibular nerve, a known effect of long Covid. She found that 2 million to 4 million full-time workers are out of the labor force due to long Covid. For one, many of the hundreds of potential long Covid symptoms are invisible to others, even if disabling for the afflicted. Why the long Covid labor gap mattersJerome Powell, chair of the Federal Reserve, mentioned Sheiner and Salwati's long Covid research in a recent speech about inflation and the labor market. That burden will continue to rise if long Covid patients don't start recovering at greater rates, she said.

☆ Treasury yields climb as markets ponder future Fed interest rate policy
▼ + stars: | 2022-11-18 | by ( Sophie Kiderlin | ) www.cnbc.com time to read: +1 min

The 2-year Treasury yield was last at 4.5095% after rising by more than five basis points. U.S Treasury yields rose on Friday as Federal Reserve officials suggested interest rates would go higher still, after recent economic data had given investors hope about inflation easing. Uncertainty about the Fed's interest rate plans continued to weigh on markets. Throughout the week, a series of Fed speakers indicated that the central bank would continue on its path of interest rate hikes. Investors had hoped that recent wholesale and consumer inflation figures, which came in less hot than expected, would prompt the Fed to slow or pause rate hikes.

☆ Stocks sag, bond yields firm as yen sinks further
▼ + stars: | 2022-10-20 | by ( Huw Jones | ) www.reuters.com time to read: +5 min

The strong dollar continued to loom over currency markets, with the yen sinking to a 32-year low against the greenback. U.S. 10-year Treasury yields touched a 14-year high, while 2-year German government bond yields rose to their highest since December 2008. But earnings are likely to fall next year which, along with anticipated interest rate hikes in the United States and elsewhere, are already largely priced into markets, Osman said. China's stock market (.SSEC) fell while Hong Kong stocks (.HSI) hit levels last seen during the 2008-09 global financial crisis. The rise in the dollar and yields pushed gold lower, with prices lingering at a three-week trough on Thursday.

SINGAPORE/LONDON, Oct 20 (Reuters) - The dollar hit the symbolic level of 150 yen on Thursday as the greenback was supported by Treasury yields trading at multi-year highs, keeping markets on high alert for any signs of an intervention from Japanese authorities. Moves among other majors were more muted with the euro at $0.97835 and sterling at $1.1217, both failing to regain ground on the dollar, after tumbling the day before. The fragile yen briefly weakened past 150 per dollar in early European trading for the first time since August 1990. The Japanese currency has been weakening as the country's central bank has been intervening in markets to keep Japanese benchmark yields pinned near zero, at a time when those elsewhere are rising. The benchmark U.S. 10-year Treasury yield rose to 4.18% on Thursday, its highest level since mid-2008, while the two-year Treasury yields touched a 15-year high of 4.6079%.

☆ Dollar rides Treasury yields higher, yen closes in on key 150 level
▼ + stars: | 2022-10-20 | by ( Rae Wee | ) www.reuters.com time to read: +4 min

SINGAPORE, Oct 20 (Reuters) - The dollar loomed over major peers on Thursday as Treasury yields peaked at multi-year highs, while the yen slid to a fresh 32-year low and kept markets on high alert for any signs of an intervention. The fragile yen hit a fresh trough of 149.98 per dollar, its lowest since August 1990, and last bought 149.975. "Given that Treasury yields have moved decisively above 4%, were it not for the threat of intervention then I think dollar/yen would already be trading north of 150." The benchmark U.S. 10-year Treasury yield rose to 4.154% on Thursday, its highest level since mid-2008, while the two-year Treasury yields touched a 15-year high of 4.582%. "Because central banks misjudged how high inflation would go, they're really still catching up by increasing interest rates significantly, and that's going to cause big problems for the world economy, particularly next year," said CBA's Capurso.

☆ Dollar rides Treasury yields higher, yen flirts with key 150 level
▼ + stars: | 2022-10-20 | by ( Rae Wee | ) www.reuters.com time to read: +4 min

The Japanese yen hit a fresh trough of 149.96 per dollar, its lowest since August 1990, and last bought 149.92. "Given that Treasury yields have moved decisively above 4%, were it not for the threat of intervention then I think dollar/yen would already be trading north of 150." The benchmark U.S. 10-year Treasury yield rose to 4.154%, its highest level since mid-2008, while the two-year Treasury yields touched a 15-year high of 4.582%. It bottomed at 7.2794 per dollar, the lowest level since such data first became available in 2011, and last traded 7.2615. It had hit an almost two-week high of $0.5719 on Tuesday, following release of a hot inflation data, prompting bets of a more aggressive central bank rate hike.

☆ Asia stocks slide as investors lose risk appetite, yields rise
▼ + stars: | 2022-10-20 | by ( Ankur Banerjee | ) www.reuters.com time to read: +3 min

Japan's yen crept close to the psychological barrier of 150 per dollar after earlier marking a fresh 32-year low of 149.93. The yield on the 10-year U.S. Treasury US10YT=RR note touched a fresh 14-year high, brushing off a weak housing report. U.S. 10-year yields were last up at 4.139%, beyond the 4.136% high it touched earlier. China's stock market (.SSEC) opened 0.5% lower as the ruling Communist Party's twice-a-decade congress remains in session this week. The rise in the dollar and yields pushed gold lower, with prices lingering at a three-week trough on Thursday.

☆ Asia stocks slip as risk appetite wanes on rate-hike fears
▼ + stars: | 2022-10-20 | by ( Ankur Banerjee | ) www.reuters.com time to read: +4 min

European stock futures indicated stocks were set to decline, with Eurostoxx 50 futures down 0.43%, German DAX futures down 0.45% and FTSE futures down 0.25%. "Yields rose to fresh cycle highs and risk appetite soured," said Taylor Nugent, a markets economist at National Australia Bank in Sydney. China's stock market (.SSEC) fell on Thursday while Hong Kong stocks (.HSI) hit levels last seen during the 2008-09 global financial crisis. Sterling fell 0.2% to $1.12005 even as the inflation data showed food prices have jumped the most since 1980. /FRX"I think the risk of another intervention continues to be very high," said Commonwealth Bank of Australia strategist Carol Kong.

☆ Fed's Kashkari says labor shortages still a big issue for business
▼ + stars: | 2022-10-19 | by ( Michael S. Derby | ) www.reuters.com time to read: +2 min

“I’ve seen very little evidence in my region that the labor market is softening,” Kashkari said in a virtual appearance. On the inflation front, Kashkari said the surge in overall prices may have hit its high point but underlying pressures are a different story. Kashkari is one of the Fed's most steadfast supporters of raising short-term rates to help lower very high levels of inflation. Kashkari has said it's possible the Fed will need to raise rates above that level to bring down inflation. "I'm looking for some evidence" that the factors that drive underlying inflation "have in fact stopped climbing.

☆ Morning Bid: Back to basics - double-digit UK inflation
▼ + stars: | 2022-10-19 | by ( ) www.reuters.com time to read: +2 min

A look at the day ahead in European and global markets from Ankur BanerjeeWith investors' mood perking up this week, leading to a buoyant rally, UK inflation data, due on Wednesday, takes the spotlight. The reading will likely determine how hawkish the BoE gets in the near term. The consumer price index, already at a decades high, is expected to jump 10% for the month of September. Register now for FREE unlimited access to Reuters.com RegisterThe cost of living crisis has led to protests and strikes in in European countries, while red-hot inflation has pushed firms eastward in Europe to cut costs. The currency market remains on guard for any sign of another yen intervention as the beaten down currency hovers around the psychological barrier of 150 per dollar.

☆ Back to basics: double-digit UK inflation
▼ + stars: | 2022-10-19 | by ( ) www.reuters.com time to read: +2 min

☆ Minneapolis Fed directors wanted 100 bp discount rate hike in September
▼ + stars: | 2022-10-18 | by ( Michael S. Derby | ) www.reuters.com time to read: +1 min

The Minneapolis Fed directors sought to have the discount rate, which sets the cost for a key emergency lending rate, moved to 3.50% from the 2.50% level it stood at when those directors voted on Sept. 8. It raised the discount rate by the same margin, its usual practice, to its current level of 3.25%. Meanwhile, the boards of the New York and San Francisco Fed banks voted for a 3% discount rate, the minutes said. The 12 regional Fed banks are quasi private intuitions that are each overseen by boards of directors drawn from the private sector. Discount rate votes do not determine where the Fed sets the federal funds rate, its chief tool for influencing the direction of the economy.

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