Brokered CDs Reaching New Highs in 2024 Deposit costs at banks reflect competition from yields on the 3-month T-Bill near 5%, and the 2-year at 4%, coupled with the upward pressure of another potential 25-basis point hike in the Fed funds rate in May. Together, these yields forecast rising deposit costs…
February’s growth rate in the Fed’s favorite gauge of inflation, “Core Services Ex Housing PCE” is expected to remain at 4.6% well into 2023, 190-basis points above the 2.7% required run rate in the aggregate that coincides with the 2% headline and core PCE target of the Federal Reserve. Table I Source:…
IDC Financial Publishing (IDCFP) measures two different time series in balance sheet cash flow (BSCF) as a percent of Tier I capital. Quarter-to-quarter change in balance sheet cash flow percent Tier I capital.Year-over-year change in balance sheet cash flow percent Tier I capital. Balance sheet cash flow equals the operating cash flow…
Part I: IDCFP’s Approach to Bank Risk Liquidity IDC Financial Publishing (IDCFP) examines another two measures of risk. One is uninsured deposits, borrowing and other liabilities as a percent of the market value of assets available for liquidation. Uninsured deposits are normally used in risk analysis. Borrowings are often secured by…
Supercore, Services Less Rent of Shelter, Inflation Remains Elevated Even with year-over-year inflation moving closer to the Fed’s target benchmark rate of 2%, the cost of services has become a growing share of overall inflation in recent months, and the central bank is closely monitoring so-called supercore inflation.1 Table I Housing costs are excluded…
