There was support from an unspecified number of Federal Reserve officials for an interest rate hike at the central bank’s policy meeting in June, according to a summary of the discussions released Wednesday.
“Some participants indicated that they favored raising the target range for the federal funds rate 25 basis points at this meeting or they could have supported such a proposal,” the minutes of the June 13-14 meeting said.
These…
The numbers: U.S. producer prices rose 0.2% in April, the Labor Department said Thursday.
Economists polled by the Wall Street Journal had forecast the PPI would rise 0.3%.
In the 12 months through April, the PPI increased 2.3%. It follows a 2.7% gain in March. This is the lowest rate since January 2021.
Key…
Federal Reserve officials, meeting days after the collapse of Silicon Valley Bank, agreed that the stress in the banking sector would slow U.S. economic growth, but were uncertain about how much, according to minutes of the meeting released Wednesday.
The twelve voting members on the Fed’s interest-rate committee “agree that recent developments were likely to result in tighter credit conditions for households and businesses and to weigh on economic activity, hiring and inflation, but that the extend of these effects were…
The Federal Reserve will meet on Wednesday and, for once, the outcome is unclear.
This is the most uncertain Fed meeting since 2008, said Jim Bianco, president of Bianco Research.
Fed officials, starting with former chair Ben Bernanke, have perfected the art of having the market price in what the central bank will do — at least regarding interest rates — at each upcoming meeting. That has happened 100% of the time, Bianco said on Twitter.
The Fed’s meeting this week is different because it follows the sudden collapse of confidence in the U.S. banking system following the government takeover of Silicon Valley Bank as well as the tremors around the world that have led to the shotgun wedding of Swiss banking giant Credit Suisse and its longtime rival, UBS.
At the moment, the market probabilities are 73% for a quarter-percentage-point move and 27% for no move, according to the CME FedWatch tool. The market seems to be growing in confidence of a hike, analysts said, based on movements on the front end of the curve.
The Fed’s decision will come on Wednesday at 2 p.m. Eastern and will be followed by a press conference from Fed Chair Jerome Powell.
“Depending on your perspective, the Fed’s decision will be seen as either capitulation to the markets or ivory-tower isolation from the markets,” said Ian Katz, a financial sector analyst with Capital Alpha Partners.
Here are the pros and cons for both a pause and a 25-basis-point hike.
The main rationale for a pause is that the banking system is under stress.
“While policymakers have responded aggressively to shore up the financial system, markets appear to be less than fully convinced that efforts to support small and midsize banks will prove sufficient. We think Fed officials will therefore share our view that stress in the banking system remains the most immediate concern for now,” said Jan Hatzius, chief economist at Goldman Sachs, in a note to clients Monday morning.
Former New York Fed President William Dudley said he would recommend a pause. “The case for zero is ‘do no harm,’” he said.
The case against a pause is that it could spark more worries about the banking system.
“I think if they pause, they are going to have to explain exactly what they are seeing, what is giving them more concern. I am not sure a pause is comforting,” said former Fed Vice Chair Roger Ferguson in a television interview on Monday
The main reason for a quarter-percentage-point rate increase, to a range of 4.75%-5%, is that it could project confidence.
“What you need from policymakers is steady hands, steady ship,” said Max Kettner, chief multi-asset strategist at HSBC. “You don’t need overaction … flip-flopping around in projections or opinions.”
The Fed should say that it has managed to contain confidence so far and that “we can press ahead with the inflation fight,” he added.
Oren Klachkin, lead U.S. economist at Oxford Economics, said he didn’t think “the recent bank failures pose systemic risks to the broad financial system and economy.”
He noted that “inflation is still running hot” and the Fed has better ways to alleviate banking-sector stress than interest rates.
The case against hiking is that doing so could further exacerbate concerns about the stability of the banking sector.
“A rate hike now might have to be quickly reversed to deal with a deeper, less contained recession and disinflation. Why would the Fed raise rates when it may be forced to cut rates so much sooner than previously hoped?” asked Diane Swonk, chief economist at KPMG.
Gregory Daco, chief economist at EY, said he thinks economic activity is slowing, which gives the Fed time.
“There is no rush to hike. We are not going to see hyperinflation as a result,” he said.
Stocks
DJIA,
SPX,
rose Monday. The yield on the 10-year Treasury note
TMUBMUSD10Y,
inched up to 3.46%, still well below the 4% level seen prior to the banking crisis.
KEENE, N.H. — A small plane crashed into a building in New Hampshire, killing the two people on board and sparking a large fire on the ground, authorities said.
The Federal Aviation Administration said in a statement Saturday that a single-engine Beechcraft Sierra aircraft crashed into a building north of Keene Dillant-Hopkins Airport in Keene, New Hampshire on Friday evening. City officials said on their Facebook page that no one was injured in the building that was hit by the plane but that “those on the plane have perished.”
“The FAA and the National Transportation Safety Board will investigate. The NTSB will be in charge of the investigation and will provide additional updates,” the FAA said.
Keene Mayor Mayor George Hansel told The Associated Press that two people on the plane died but that they have not been identified. He said the the plane hit a two-story barn connected to a multi-family apartment building. All eight people were evacuated from the apartment building due to the subsequent fire and have since been relocated.
The cause of the crash remains under investigation.
“We are very fortunate in some ways that the plane didn’t hit a part of the building where people were,” he said. “This obviously could have been much worse but any loss of life is a tragedy.”
Shaughn Calkins told WMUR-TV that he saw the fire as he was driving.
“We were probably close to quarter of a mile away, and you could feel the heat from the fire,” Calkins said. “It was billowing, so it was a big fire.”
Press Release
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Jul 14, 2022
COLORADO SPRINGS, Colo., July 14, 2022 (Newswire.com)
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USfalcon is pleased to announce that Mark Cravens has been promoted to Vice President of Operations. Mark will lead the operations team in pursuing the strategic and operational goals of the Air and Space Operations (ASO) Business Unit. Mark joined USfalcon in December as the General Manager of Operations in Colorado Springs. An accomplished leader, he proudly served in the U.S. Marine Corps until his retirement and successfully transitioned to an industry where he gained nearly two decades of experience in Space, Missile, and Aviation Programs.
Pete von Jess, USfalcon CEO, stated, “Mark’s leadership experience and background in Space and Missile Programs make him the obvious choice as our Vice President of Operations overseeing our ASO Business Unit. I look forward to supporting him in his new role as he implements growth plans for the business.”
USfalcon is a mid-tier growing professional services company supporting a diverse and global customer base of DoD and Federal Agencies since 1984. We deliver core capabilities in Aviation, Space, Information Technology, and Business Operations Management Services. We foster close and trusted relationships with our customers, partners, and employees.
Source: USfalcon, Inc.
Retired Army Officer, Former Special Operations Aviation Pilot and Acquisition Officer Promoted
Press Release
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Apr 19, 2022
SANFORD, Fla., April 19, 2022 (Newswire.com)
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Hoverfly Technologies Inc. is pleased to announce Kevin S. Cochie has been promoted to Chief Strategy Officer. Kevin is now responsible for Hoverfly’s internal and external strategy, including fundraising, business development, and marketing priorities. He will provide ongoing support of Hoverfly’s LiveSky product line, the worldwide leader in the tethered drone industry, for a growing number of defense, security, and commercial customers.
“It’s an honor and privilege to join a quickly growing company composed of entrepreneurial teammates sharing a common goal of delivering new technology and capability to the warfighters I once served beside. This company and technology will serve many purposes across the commercial and government landscape,” Cochie said.
Kevin S. Cochie joined Hoverfly in October and is the former VP & GM of FLIR systems’ airborne sensor business. Prior to his tenure at FLIR, Kevin was VP & GM of Erickson Helicopter’s Defense business. Kevin is a retired Army officer, where he served in multiple capacities in Army Special Operations Aviation from platoon leader to acquisition director. He holds a BS and MS in Engineering from the University of Central Florida and an EMBA from the Georgetown McDonough School of Business.
“We are delighted to elevate Kevin to CSO as he has made an immediate and very positive impact in several key areas, since joining in October. He is an integral part of our leadership team and we believe he will continue to propel Hoverfly into a dominant position in our market space in the coming months and years,” said Hoverfly President and COO Steve Walters.
Press Contact:
Tyler Marple
hoverflytech.com
407-985-4500
Source: Hoverfly Technologies, Inc.
Press Release
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Feb 16, 2022
CARY, N.C., February 16, 2022 (Newswire.com)
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USfalcon was awarded three prime contract positions on the General Services Administration (GSA) ASTRO multiple-award, indefinite-delivery, indefinite-quantity family of contracts for technical and engineering services related to manned, unmanned, and optionally manned vehicles. Managed by GSA’s Federal Systems Integration and Management Center (FEDSIM) office, the GSA ASTRO contracts are a strategic addition to USfalcon’s existing portfolio of contract vehicles accessible to customers across the federal government. The ASTRO contracts have a 10-year ordering period with no ceiling on the contract value. The three pools awarded to USfalcon include:
“The ASTRO IDIQ contract award aligns with our mission ‘To contribute significantly to our customers’ success’ and allows us to continue to bring fresh ideas and powerful insights to the government’s toughest challenges. We are excited to add this contract to our suite of contracts providing our federal clients with another vehicle to utilize our services to their benefit,” said Pete von Jess, USfalcon CEO.
Source: USfalcon
Press Release
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Dec 8, 2021
CARY, N.C., December 8, 2021 (Newswire.com)
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USfalcon is pleased to announce that David Jones has been promoted to Vice President of Operations. In his new role, David will lead the operations teams in pursuing the strategic and operational goals of the Business Operations Management (BOM) and Information Technology Solutions (ITS) Business Units. David has been a member of the USfalcon team since 2004, most recently in the role of Operations Director. He is an accomplished leader with over 20 years of technical support and program management experience providing worldwide IT support. Prior to joining USfalcon, David proudly served his country for 10 years with tours of duty in Afghanistan, Kuwait, and Iraq.
Pete von Jess, USfalcon CEO, stated, “David’s leadership and both technical and management experience make him an excellent choice for Vice President of Operations overseeing our BOM and ITS Business Units. I look forward to supporting him in his new role as he implements growth plans for the business.”
USfalcon is a mid-tier growing professional services company supporting a diverse and global customer base of DoD and Federal Agencies since 1984. We deliver core capabilities in Aviation, Space, Information Technology, and Business Operations Management Services. We foster close and trusted relationships with our customers, partners, and employees.
Source: USfalcon, Inc.