FED: Fed's Hammack - Cuts Could Prolong Inflation Fight
Nov-20 13:53
- (MNI) Federal Reserve Bank of Cleveland President Beth Hammack on Thursday said lowering interest rates risks prolonging elevated inflation, and could come at the cost of heightened financial stability risks down the road.
- "Inflation has been running above the Fed’s 2% objective for four and a half years. Lowering interest rates to support the labor market risks prolonging this period of elevated inflation, and it could also encourage risk-taking in financial markets," she said in prepared remarks for a financial stability conference. Financial conditions are quite accommodative today, reflecting recent gains in equity prices and easy credit conditions, she said.
- "Easing policy in this environment could support risky lending. It could also further boost valuations and delay discovery of weak lending practices in credit markets," Hammack said.
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PIPELINE: Corporate Bond Update: $5B World Bank 5Y SOFR Priced
Oct-21 13:53
- Date $MM Issuer (Priced *, Launch #)
- 10/21 $5B #World Bank 5Y SOFR+38
- 10/21 $2B *Kingdom of Sweden 3Y SOFR+26
- 10/21 $1.25B Albertsons 5.5NC2, 8.5NC3
- 10/21 $Benchmark Alberta 10Y SOFR+85a
- 10/21 $Benchmark ASB Bank 5Y +90a, 5Y SOFR
- 10/21 $Benchmark Oman Electricity 5Y Sukuk
- 10/21 $Benchmark Kazakhstan 5Y +90a
- 10/21 $Benchmark GS Caltex 5Y +115a
EQUITY TECHS: E-MINI S&P: (Z5) Support Intact
Oct-21 13:46
- RES 4: 6850.87 1.618 proj of the Aug 1 - 15 - 20 price swing
- RES 3: 6831.38 2.500 proj of the Aug 20 - 28 - Sep 2 price swing
- RES 2: 6819.25 1.500 proj of the Aug 1 - 15 - 20 price swing
- RES 1: 6812.25 High Sep 9 and the bull trigger
- PRICE: 6775.50 @ 14:35 BST Oct 21
- SUP 1: 6621.99 50-day EMA
- SUP 2: 6540.25 Low Oct 10 and a key short-term support
- SUP 3: 6506.50 Low Sep 5
- SUP 4: 6427.00 Low Sep 2
A bullish theme in S&P E-Minis remains intact and the contract is trading above support at the 50-day EMA. The average, currently at 6621.99, has been pierced but remains intact - for now. Note that the Oct 10 low of 6540.25 marks the key short-term support. Clearance of this level would undermine a bull theme. Moving average studies remain in a bull-mode position, highlighting a dominant uptrend. The bull trigger is 6812.25, the Oct 9 high.
EUR: FX Exchange traded Option
Oct-21 13:45
- EURUSD (4th Sep) 1.1700c, bought for 0.3430 in 1.62k (new position).
The underlying is already trading at 1.1785.
