Nuvo’s Post

What Modern Monetary Theory (MMT) advocates for in the case of the United States is that the government first spends and then issues debt against that spending, which is the advantage of having the world's reserve currency. The process is quite simple and involves three parties: the Federal Reserve, the Treasury, and the primary dealers. First, the primary dealer must receive the securities that the Treasury will issue in the future. Then, the primary dealer requests liquidity from the Fed using those securities as collateral. The Fed now has more assets on its balance sheet and provides reserves to the primary dealer. Subsequently, the primary dealer delivers the reserves to the Treasury General Account (TGA). In reality, the Fed allows the TGA to spend what it needs to spend. I suppose this is what Modern Monetary Theory (MMT) defends, the collaboration between the Fed and the Treasury. #MMT

S&P analysts are expecting headwinds for the US public finance sector, as the country grapples with higher interest rates and inflation. Municipalities have been able to avoid issuing debt, given large surpluses from federal aid, but S&P expects this flexibility to be short-lived.

MMO for July 29, 2024. Lou Crandall : We don’t expect to learn much from this Wednesday’s Fed press conference. A September rate cut still seems likely to us, but Chair Powell can wait for the Jackson Hole conference in late August to send an explicit signal. The Treasury’s quarterly financing announcements, in contrast, will start to clear up some of the uncertainty in the outlook for the front end. Our bill projections could look very different after the official quarterly borrowing projections are released on Monday afternoon. Be sure to read our complete and ongoing analysis, Log into your account or register for a free 2 week trial at www.Wrightson.com #RateHike #USTreasury #FED #x-date #FOMC #Wrightson #Crandall #FedWatcher #usEmployment #BankReserves #TargetFundsRate #TGA #PCE #CMB #TreasuryBills #CashManagementBills #SVB #TGA #FOMCMinutes #FedPolicy #OISForwards #SEP #RRP #QuarterlyRefunding

A promising period for private credit: how long will it last? Jeff Levin, Travis Henning, Ariel Goldblatt, Betty Salanic and Mary Bates are exploring this at SuperReturn Private Credit US, as well as talking about the macroeconomic factors that could contribute to the downfall of private credit 💭 #SRPCUS

A new episode of PGIM Market Commentary is here – topics highlighted: Signs of disinflation, solid week for financial markets, and Q1 earnings season kicked off. 🎧 Listen here: https://lnkd.in/gCqPpJTV #markets #finance

Key data today: RBA rate decision and U.S. consumer confidence. How will these impact AUD and USD? Share your trading plans below. #GFSMarkets #RBA #Investment #InvestSmart #ForexTrading #WealthBuilding

A new episode of PGIM Market Commentary is here – topics highlighted: Signs of disinflation, solid week for financial markets, and Q1 earnings season kicked off. 🎧 Listen here: https://lnkd.in/esd2YDsd #markets #finance

Markets and elections: A historical observation The long-term course of the markets is not influenced by the election outcome but by other emerging factors. In the short term, meaning the period of one month before and one month after the elections, market movements are usually influenced by how close the two candidates are in the race, as is the case now. The usual pattern is a corrective market trend before the elections, followed by a strong rally afterward, regardless of whether the Republicans or the Democrats win. This scenario seems to be the most likely, with the markets, however, showing greater chances of reaching new all-time highs before entering this well-known phase of higher volatility.

A new episode of PGIM Market Commentary is here – topics highlighted: Signs of disinflation, solid week for financial markets, and Q1 earnings season kicked off. 🎧 Listen here: https://lnkd.in/gp49DWVs #markets #finance