28 August 2019 FT — Articles to Read

28 August 2019

 

Question: According to MSN: Money, what percentage of married couples in Baltimore earn over $100k and what is there monthly disposable income?

 

Ex-Fed chief asks central bank to think about Trump ‘threat’ – Pg. 3

  • The Federal Reserve was forced to reassert that “political considerations play absolutely no role” in policymaking after the former head of the New York Fed urged the central bank to consider Donald Trump’s re-election prospects in setting rates
  • Mr Dudley also wrote that they should “refuse” to dole out stimulus to cushion the damaging effects of Mr Trump’s trade war
  • “The Federal Reserve’s policy decisions are guided solely by its congressional mandate to maintain price stability and maximum employment,” the spokesman said. “Political considerations play absolutely no role.”
  • He also urged officials to consider how their decisions could affected the outcome of next year’s presidential election
  • “Trump’s re-election arguably presents a threat to the US and global economy, to the Fed’s independence and its ability to achieve its employment and inflation objectives,” Mr Dudley wrote in his column. “If the goal of monetary policy is to achieve the best long-term economic outcome, then Fed officials should consider how their decisions will affect the political outcome in 2020,” he concluded (Prof Note: This is important to note, i.e. questions about independence regarding the U.S. Central Bank)
  • Traders are currently pricing in a 93% chance the Fed will cut its benchmark interest rate by 25bps in September, with the odds of a more aggressive 50bps cut much smaller, at 6%

 

Greek yields it record low after capital controls move – Pg. 17

  • Investors are flocking to Greece as the former financial pariah emerges from a decade of economic crisis, sending stock prices soaring and borrowing costs tumbling
  • …capital controls imposed following a 2015 bank run will be fully lifted on September 1, meaning Greek households and companies will no longer face restrictions on transferring money abroad
  • Ten-year government bond yields dropped as much as 14bps yesterday to 1.826%, their lowest level on record, bringing total falls for the year to 250bp
  • The sharp moves are part of a broader rally in Eurozone debt which has pushed yields on a large part of the eurozone’s sovereign debt market below zero
  • Greek stocks are also surging. The Athex composite index has risen 35% this year, leaving it on track for its best year since 1999 and outgunning the 10% gain of Europe’s benchmark

 

Answer: 58.6% and $174/mo