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MiB: Bill Dudley, NY Fed Chief

The Big Picture

Dudley explains how he became President of the NY Fed in January 2009 — right in the heart of the GFC. He describes that as a turning point in the banking crisis.

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Reading the volatility tea leaves

Nationwide Financial

In times of peaking pessimism and extreme bearishness, investors often try to parse how the financial markets are reflecting an array of risks. However, how might the market reflect its trepidations when trying to digest those risks? This behavior is like what was seen near the bottom in 2002, 2009, and 2020.

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The Tell: Goldman Sachs warns of broad-based deterioration in market functioning

MarketWatch

As financial markets turned to Wednesday’s policy update from the Fed, Treasury yields shot higher across the board, sending the 2-year rate BX:TMUBMUSD02Y to its biggest one-day jump since June 5, 2009. Meanwhile, U.S. stocks DJIASPXCOMP finished higher.

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Why volatility matters when investing

Nationwide Financial

Two of the most significant developments in the financial markets during 2022 were the breakout of higher interest rates and the return of stock market volatility. For a glimpse of how volatile stocks were last year, consider the VIX Index, often used as a gauge of fear or stress in the stock market.

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Market turmoil flips Fed script

Nationwide Financial

For investors, events in the financial markets over the last two weeks have underscored the importance of preparing for the unexpected. Market participants interpreted this as a potential half-point increase in the Fed funds target rate at the FOMC’s March 22 meeting. Fixed income volatility has unsettled equity markets, too.

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Azad Engineering’s Partnership with Rolls-Royce and its position in aerospace explained

Trade Brains

The company recently made waves in the financial markets with its IPO with an astonishingly high Price-to-Earnings (PE) ratio of 292x! million units between Fiscal 2009 to Fiscal 2023 at an overall level. The stock has rallied 23 percent, from the day it got listed on December 29, 2023. It has also manufactured and delivered 3.09

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Question #6 for 2023: What will the Fed Funds rate be in December 2023?

Calculated Risk

In summary, we find evidence for a shorter lag in the peak response of inflation to a policy shock in the post-2009 period even after we adjust the shock definition to incorporate forward guidance and balance sheet policy. Foerster at the Kansas City Fed: Have Lags in Monetary Policy Transmission Shortened?

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