01/14/25

Asset-Liability Management: What if the Fed Hikes?

Last year’s worries of deterioration in labor-market conditions have evaporated and the Fed is still harboring concerns about elevated inflation risks. Many banks budgeted some six rate cuts in their 2024 asset-liability plans last year that never materialized. Going forward, the major unknown is the new administration’s policies that all skew to higher inflation (from…

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08/21/21

Can The Federal Reserve Afford to Raise Interest Rates?

The market is now pricing Fed Fund hikes beginning in 2022, and the proposed fiscal stimulus in the form of two separate infrastructure bills totaling $4.5T has created a new sense of optimism for FOMC members. However, the lingering concern that many bankers hold is can the country (US Department of the Treasury) afford to…

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