The consumer price index for August 2022 increased 8.3%, lower than the 8.5% annual gain in July. Month-to-month CPI change was 0.1%. The peak and decline in oil prices and drop in gasoline prices in July drove half of the monthly decreases. All items less food and shelter, which has…
Actions by the Federal Reserve The Federal Reserve attempts to control inflation with actions through “open media campaigns” and the Open Market Committee, with increases in the Fed funds rate and reductions in the size of the Fed’s balance sheet (QT). Since the Jackson Hole conference in August, the Fed governors…
Brokered CDs Reaching New Highs in 2022 Yields of the 2-year T-Note over 3% and anticipated increases in the Fed funds rate, together, forecast substantial increases in brokered CDs of $250,000 or less. IDC Financial Publishing (IDCFP) has attempted over time to estimate brokered CDs for individual banks. The unknown in the equation…
Updated for 2nd Quarter 2022 Ranks Over the next two years, we expect the number of banks issuing brokered CDs to grow, recovering in 2022 and reaching the prior high of 1500 by 2024 (see Chart I). With the dramatic rise in 2 and 5-year yields, so have the yields offered…
Favorable Lending Rates Creating a New Bull Market in Bank Stocks The banking industry is healthy with strong capital positions, little loan delinquency, accelerating growth in commercialized lending, and favorable lending rates. IDC Financial Publishing (IDCFP) forecasts core PCE inflation, or sticky core CPI, to moderate to 3% in 2023,…
