While noting that risks remain, Federal Reserve Bank of Chicago president Charles L. Evans suggested monetary policy is where it should be. “As of today, I feel that the stance of monetary policy is consistent with achieving our dual mandate objectives and will help promote well-functioning financial markets,” Evans told the Futures Industry Association, according to prepared text of his speech released by the Fed yesterday. Risks to the upside and downside remain, he said. However, he noted that forecasts don’t always come true.“We can’t rule out the possibility of continued market difficulties. We can’t be sure how long it will take for financial intermediaries to complete the process of reevaluating the risks in their portfolios,” Evans said. “And many subprime adjustable-rate mortgages will see their rates climb over the next few months — a process that could feed back on to housing and financial markets. But developments could surprise us on the upside as well.”The subprime crisis is a liquidity problem, but market participants will learn from the mistakes made that caused the situation, he said. “Financial intermediaries are in the midst of reevaluating the risk associated with structured securities in their portfolios. And as we have certainly been seeing over the last several weeks, this is not easy to do and will take some time to complete,” Plosser said. “But I expect that this process will eventually reduce the lack of transparency that lies at the heart of the current liquidity crisis and will lead to more resilient financial markets going forward.”
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The California Supreme Court will hear a case challenging the state's 2013 pension changes, after seemingly settling the issue with a 2020 ruling.
April 24 -
The "impressive" investor appetite for tax-exempts has been "holding steady all quarter despite expensive valuations, supply surges and periods of low reinvestment demand," said GW&K Investment Management strategists in a report.
April 24 -
As space becomes an increasingly important frontier for development and competition, spaceports should enjoy the same financial benefits as airports and seaports, say supporters of the federal legislation.
April 24 -
The governor should have involved the legislature earlier in decision making on how to give the Water and Power Authority money to make a bond payment, lawmakers said.
April 24 -
A Utah law may be tapped to issue bonds to renovate a downtown Salt Lake City basketball arena to accommodate the former Arizona Coyotes.
April 24 -
Along with UBS' departure from the negotiated underwriting space, various firms have hired talent from both firms to increase their primary and secondary market presence. Many hope for some positive effects in both competition and secondary market liquidity as a result.
April 24