High contrast
The contrast between the Federal Reserve’s policy-setting meeting in September and the one that ended Wednesday is striking. In the former, Chair Jerome Powell seemed to have a jump in his step as he announced the Federal Open Market Committee (FOMC) had lowered rates by a quarter percentage point with only one, very expected, dissent […]
Weak UK economic outlook bolsters money market flows
The UK macroeconomic backdrop remains fraught and uncertain. The government is grappling with a ‘black hole’ in its finances and further tax rises are expected in the Autumn Budget scheduled for 26 November1. Rising levels of government debt continue to put pressure on borrowing costs – which are at their highest levels since the 1990s […]
Slow and steady
Another September rate cut and another reason to consider liquidity products. Common sense would say that when the Federal Reserve (Fed) lowers its benchmark fed funds target range, as it did by a quarter percentage point two weeks ago, that interest rates and yields across the board would fall in concert. But finance doesn’t always […]
Looking on the bright side
Football season is upon the US, but the biggest end-around is not on the field but in Washington as President Donald Trump is trying another way to influence the Federal Reserve (Fed). But before I address his attempt to remove Fed Governor Lisa Cook, I’d like to discuss some positives in the money markets. Plumbing is in […]
Construction junction
Add photos of Federal Reserve (Fed) Chair Powell and President Donald Trump in construction hard hats to the list of his desperate attempts to influence US monetary policy. As is well known, Trump has been bullying the Fed to lower interests for some time but has upped the ante in the last few months. His case is that restrictive […]
Not the time to lack ‘conviction’
One of the numerous costs of President Donald Trump’s assault on US Federal Reserve Chair Jerome Powell is casting monetary policy as black and white. It might have seemed that way decades ago. Before former Fed chair Ben Bernanke essentially opened it to the public, the Fed was a black box. It communicated primarily through […]
The answer is, ‘No’
This is one of those instances when it is best to be direct. As soon as the news hit about Moody’s recent downgrade of the US credit rating, we knew cash managers would be fielding questions about its impact on US money market funds. There are no ramifications: the rating agency has affirmed its Aaa-mf […]
Your guide to money market funds
Fast reading A money market fund (MMF) is a professionally managed, diversified investment vehicle designed to meet short-term cash-management needs or serve as a lower-risk alternative to the volatility of stocks or longer-term bonds. MMFs consist of highly liquid, high-quality money market instruments with the primary objective of providing current income, consistent with liquidity and […]
Trump’s tariffs and credit spreads: is the pain over?
(This webinar aired on April 10th 2025) Topics The impact of inflation and interest rate changes on investment strategies. Navigating global policy changes. Strategies for managing global short-term and liquidity markets. For more timely insights, explore the latest Institutional POV. Read More Watch now Listen now Read More Watch now Listen now Read More Watch […]
Global Liquidity Lens, March 2025
(This webcast aired on March 26th 2025) Topics The impact of inflation and interest rate changes on investment strategies. Navigating global policy changes. Strategies for managing global short-term and liquidity markets. Read More Watch now Listen now Read More Watch now Listen now Read More Watch now Listen now For more information on Federated Hermes’ […]
