Last Friday we published this note about the recent disruption in the repurchase agreement (repo) market. This is a short-term lending resource for various financial institution (banks and non-banks alike) to borrow cash by temporarily selling high-quality assets and promising to buy them back
The Land of Oz was ruled by The Wizard of Oz in the children’s novel from 1900, The Wizard of Oz by L. Frank Baum. His subjects held the mysterious man in high regard. Dorothy and her friends even traveled to Emerald City, the capital of Oz, because they were certain he was the only person capable of solving their issues.
Our economy is currently in the middle of its longest economic expansion ever. Sometimes it’s tough to imagine the Great Recession ended over a decade ago or that the first recession of this century started over 18 years ago. During both downturns, output was in steep decline and firms were hemorrhaging jobs by the hundreds of thousands each week (e.g., in March 2009, the net
April 2019 Chicago Fed National Activity Index
Prices paid by producers and wholesalers rose marginally in February 2019 according to the Bureau of Labor Statistics. Their Producer Price Index rose 0.1 percent after declining a similar amount in both December and January. Year-over-year, this price proxy is up 1.9 percent, declining modestly from 2.0 percent in January.