{"id":44940,"date":"2023-03-07T20:42:54","date_gmt":"2023-03-08T01:42:54","guid":{"rendered":"https:\/\/prefblog.com\/?p=44940"},"modified":"2023-03-07T20:42:54","modified_gmt":"2023-03-08T01:42:54","slug":"march-7-2023","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=44940","title":{"rendered":"March 7, 2023"},"content":{"rendered":"

\"\"<\/a><\/p>\n

TXPR closed at 567.37<\/a>, down 0.51% on the day. Volume today was 1.50-million, third-highest of the past 21 trading days.<\/p>\n

CPD closed at 11.27<\/a>, down 0.35% on the day. Volume was 93,900, above the median of the past 21 trading days.<\/p>\n

ZPR closed at 9.39<\/a>, down 0.42% on the day. Volume was 247,320, second-highest of the past 21 trading days.<\/p>\n

Five-year Canada yields were at 3.59%<\/a> today.<\/p>\n

Life wasn’t exactly rosy in other markets, which the pundits attribute to Powell’s testimony to Congress<\/a>:<\/p>\n

Of Wall Street\u2019s three major indexes, the Dow Jones Industrial Average lost most ground with a 1.7% decline, while the S&P 500 fell 1.5% and the Nasdaq Composite lost almost 1.3%. The S&P\/TSX Composite Index lost 1.2%.<\/p>\n

Powell sent stock investors fleeing when he told U.S. lawmakers earlier in the day that the Fed is prepared to hike rates in larger steps if future economic data suggests tougher measures are needed to control rising prices.<\/p>\n

The remarks followed recent data showing an unexpected inflation increase in January and an unusually large jobs gain for the month.<\/p>\n

Traders dramatically raised their bets for a 50-basis-point rate hike in March after Powell\u2019s comments, with money market futures last pricing in a more than 70% chance of such a move, up from around 31% on Monday, according to CME Group\u2019s FedWatch tool.
\n…<\/b>
\nThe Dow Jones Industrial Average fell 574.98 points to 32,856.46; the S&P 500 lost 62.05 points to 3,986.37; and the Nasdaq Composite dropped 145.40 points to 11,530.33.<\/p>\n

All 11 major S&P sectors closed lower, led by economically sensitive financials which finished down 2.5%. Declining least was the consumer staples index, down 0.97%.
\n…<\/b>
\nMeanwhile, the yield on two-year Treasury notes, which best reflects short-term rate expectations, hit 5% for the first time since July 2007.
\n…<\/b>
\nThe Toronto Stock Exchange\u2019s S&P\/TSX composite index ended down 239.26 points at 20,275.54, its lowest closing level since last Wednesday<\/p><\/blockquote>\n

The NYT reported<\/a>:<\/p>\n

Mr. Powell, in remarks before the Senate Banking Committee, also noted that the Fed\u2019s fight against inflation was \u201cvery likely\u201d to come at some cost to the labor market.<\/p>\n

His comments were the clearest acknowledgment yet that recent reports showing inflation remains stubborn and the job market remains resilient are likely to shake up the policy trajectory for America\u2019s central bank.
\n…<\/b>
\nBut a number of recent economic reports have suggested that inflation did not weaken as much as expected last year and remained faster than expected in January, while other data showed hiring remains strong and consumer spending picked up at the start of the year.<\/p>\n

While some of that momentum could have owed to mild January weather \u2014 conditions allowed for shopping trips and construction \u2014 Mr. Powell said the unexpected strength would probably require a stronger policy response from the Fed.<\/p>\n

\u201cThe process of getting inflation back down to 2 percent has a long way to go and is likely to be bumpy,\u201d he told the committee. \u201cThe latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated.\u201d<\/p>\n

Fed officials projected in December that rates would rise to a peak of 5 to 5.25 percent, with a few penciling in a slightly higher 5.25 to 5.5 percent. Mr. Powell suggested that the peak rate would need to be adjusted by more than that, without specifying how much more.<\/p><\/blockquote>\n

The Boston Fed has released<\/a> a “Current Policy Perspective” by John Sabelhaus and Jeffrey P. Thompson titled “The Limited Role of Intergenerational Transfers for Understanding Racial Wealth Disparities”:<\/p>\n

Transfers of wealth between generations\u2014whether through inheritances or inter vivos gifts\u2014are less important in explaining racial disparities in wealth than might be expected. While this factor looms large in the media\u2019s discussions of racial inequality, it explains relatively little of the disparities evident in the data. One reason is that most people, regardless of race, receive no inheritance or other transfer of substantial value. In addition, most recipients of inheritances ultimately consume those bequests and do not plan to leave substantial gifts to their offspring. Further, the assets that account for a large majority of most households\u2019 wealth (employment-based retirement plans and home equity) are not inherited and accumulate slowly over families\u2019 working lives.<\/p>\n

Using nonparametric decomposition techniques, we show that intergenerational transfers explain only a modest portion of disparities between white and non-white families. This finding is consistent with prior research, but we improve upon the existing literature in a variety of ways, including augmenting the wealth measure in the Survey of Consumer Finances to account for the value of defined benefit pensions, adding controls for lifetime earnings and the availability and generosity of employer-provided pensions, and capturing some inheritances and inter vivos transfers that are not typically reflected in most studies. When no other controls are included, we find that differences in intergenerational transfers account for 13 to 16 percent of white\/non-white private wealth gaps. When we control for lifetime earnings, workplace pensions, and a handful of additional human capital variables, the marginal contribution of intergenerational transfers shrinks considerably, but the combined portion of the racial wealth gap that is explained rises to 80 to 90 percent. Policymakers interested in helping households build wealth are advised to look to ways that would enable them to boost the earnings that they receive over their lifetime.<\/p><\/blockquote>\n

The Canadian Securities Administrators are touting a software update for SEDAR<\/a>. I have sent them an eMail with a question:<\/p>\n

I understand that improvements to SEDAR “will produce better data for all stakeholders, so that analysts, investors, governments, academics and others can easily access and analyze robust data from the system to gain deeper insights into the state of the Canadian capital markets.” ( https:\/\/www.securities-administrators.ca\/about-sedar\/sedar-frequently-asked-questions\/ )<\/p>\n

Will the new system allow direct linking to any specific document at will by any of these analysts, investors, governments, academics and others without the necessity of obtaining written permission? Will access to an API make it possible for these users to devise their own search and download routines?<\/p>\n

Please advise.<\/p>\n

Sincerely,<\/p><\/blockquote>\n

Feel free to send them an eMail of your own<\/a>!<\/p>\n

The IMF has published an article by MARKUS BRUNNERMEIER titled RETHINKING MONETARY POLICY IN A CHANGING WORLD<\/a>:<\/p>\n

Although financial stability remains an important concern, there are important differences between the current environment and the one that followed the global financial crisis:<\/p>\n