Federal Reserve Board: H.2 Release for Week Ending February 3, 2018; H.4.1 Release (Balance Sheet) for Week Ending February 8, 2018; Two Of Note Items

Of Note–

(1) Millionaire economics “experts” that warn of inflation for any government spending not focused on the rich.

Comment:  Keep in mind that the U.S. Government fully bailed out Wall Street, where the richest 10 percent of Americans now own 84 percent of all U.S. stocks. (Source: Household Wealth Trends in the United States, 1962 to 2016: Has Middle Class Wealth Recovered? Edward N. Wolff, NBER Working Paper No. 24085, November 2017.)

(a) Jason Furman, Ph.D., estimated net worth in 2013 $24.6 million. (Open Secrets)

Observation: Jason Furman’s primary issue with deficit spending is based on “full employment.” Furman believes it is the U3 unemployment rate, 4.1 percent (February 2018). However, the U3 counts people receiving unemployment insurance. After the benefits run out (more or less 26 weeks), the person is no longer counted, whether or not that person has an income-producing job. After 26 weeks, the person seeking work without unemployment insurance payments is counted by the U6 measure. In February 2018, the U6 unemployment rate was 8.2 percent.

With so many left out of the so-called recovery, there is likely room for the government to do more to assist the suffering. As Furman is a millionaire, the idea that people are still broke from the Great Recession’s aftermath seems to be a difficult concept to understand.

Further, Furman believes in austerity, so this stance fits with it–no concern for the suffering. (See also Furman’s support of WalMart.)

Moreover, as the U.S. Government is in charge of its own currency, the notion that it will run out of money or go broke is nonsensical. When Wall Street had paper losses of trillions (bourne mostly by the richest in the United States), none of these economists raised this sort of issue when the government covered those rich people’s losses.



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(b) Steven Rattner, Wall Street financier and multimillionaire ($108 million to $688 million (2009)), who was involved in a pay-to-play scandal, thinks similarly to Furman on the subject of additional government spending and also that wage increases to workers is inflationary. Rattner also favors globalization that has caused suffering to the middle class with the rampant outsourcing of jobs to low-wage countries.

In light of globalization, will the government spending cause inflation or simply allow the people who are suffering to begin to reassemble their lives and merely exist with the basics (food, housing, and clothing)? It is worth a shot to see so that the long-ignored suffering people can finally receive some assistance (that is, jobs).

(2) February 2018 Monetary Policy Hearing.

Monetary Policy Report, February 2018 

The Monetary Policy Report hearings will be held on February 28, 2018,
and March 1, 2018. It will be the first for the new Chairman of the Board, Jerome Powell.

U.S. House of Representatives U.S. Senate
February 28, 2018, 10:00 a.m., House Financial Services Committee March 1, 2018, 10:00 a.m., Senate Banking Committee
Press release: https://financialservices.house.gov/news/documentsingle.aspx?DocumentID=402987 Press release:

The Federal Reserve Board (Board) publishes a weekly digest of its activities on its website. The digest is called the H.2 Release and is published every Thursday. The release for the week ending February 3, 2018, is below.

H.2 Release–Actions of the Board, Its Staff, and the Federal Reserve Banks; Applications and Reports Received

Category Action Taken
Personnel Division of International Finance — appointment of Shaghil Ahmed, Brian M. Doyle, and Joseph W. Gruber as senior associate directors; Sally M. Davies as associate director; Carol C. Bertaut and Paul Wood as deputy associate directors; and Ricardo Correa, Andrea Raffo, and Robert Vigfusson as assistant directors.
-Announced, January 29, 2018
Regulations and Policies Regulation KK (Swaps Margin and Swaps Push-Out) — publication for comment of interagency amendments that would (1) conform the definition of “Eligible Master Netting Agreement” in the swap margin rule to restrictions adopted in final rules on certain qualified financial contracts of systemically important banking organizations (QFC Rules) and (2) ensure that any legacy swap would not become subject to the swap margin rule if it is amended solely to comply with one of the QFC Rules.
-Approved, January 23, 2018
Enforcement Bank of Gueydan, Gueydan, Louisiana — written agreement issued August 12, 2014, terminated January 25, 2018.
-Announced, January 30, 2018
J.P. Morgan Securities (Asia Pacific) Limited, Hong Kong, China — determination denying the request by Fang Fang, a former institution-affiliated party, for interlocutory review of an order issued by the administrative law judge in connection with an enforcement matter.
-Approved, January 29, 2018
Wells Fargo & Company, San Francisco, California — consent cease-and-desist order against Wells Fargo & Company for unsafe or unsound practices related to the firm’s governance and risk management that led to violations of law, and associated letters.
-Approved, February 2, 2018

Federal Reserve Board: Balance Sheet (H.4.1 Release)

The Board publishes data of factors affecting reserve balances. The digest is called the H.4.1 Release, and they are published every Thursday (or the next business day if the publication date falls on a federal holiday). The release for February 8, 2018, is below.

[Note: The blog will cover the line titled “Total Factors Supplying Reserve Funds.”]

H.4.1 Release–Factors Affecting Reserve Balances

Total factors supplying reserve funds (as of February 7, 2018):  $4,467,962 (in millions of dollars). (On September 26, 2007, this amount was $900,473 (in millions of dollars)).

(See the release for further information.)