The Daily Shot Brief – January 30th, 2020



The United States: As widely expected, the FOMC left the fed funds target unchanged. The wording in the FOMC statement was changed from “inflation near” to “inflation returning” to the Committee’s target. In his press conference, Fed Chair Powell said that the change was meant to send “a clearer signal” that the FOMC is uneasy with inflation persistently running below target.

Source: @johnjhardy


The Fed cut rates three times last year, which, in combination with easing trade tensions, steepened the yield curve. But the yield curve is approaching inversion again. Now what?

Source: The Daily Shot


Emerging Markets: Many African nations have been aggressive borrowers in recent years.

Source: @WSJ; Read full article


Energy: US gasoline inventories are well above last year’s levels, while demand slumps.

Source: U.S. EIA


Equities: Global airline shares are under pressure.

Source: @financialtimes; Read full article


Rates: As expected, the Fed raised the interest rate on excess reserves to nudge the fed funds rate toward the middle of the target range (two charts).

Source: @markets; Read full article
Source: @meremortenlund; Read full article


Also, the combination of the employment-to-population ratio and inflation suggests that the fed funds rate is where it should be. The markets seem to disagree.

Source: Piper Sandler


Food for Thought: The US proposal for a two-state solution:

Source: @WSJ; Read full article

Edited by Devon Lall

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