Keep pulling the thread on Steve Liesman.
Federal Reserve Chair Jerome Powell has acknowledged the risk that longer-term inflation expectations could become unanchored due to persistent inflation above the 2% target.
A judge quashed a subpoena in a criminal case against Federal Reserve Chair Jay Powell after the Fed argued the investigation was politically motivated, citing 100 tweets from Donald Trump demanding lower interest rates.
Republican Senator Tom Tillis has stated he will not advance any of the President's nominees to the Federal Reserve while the criminal investigation into Jay Powell is ongoing.
Kevin Warsh, a nominee for the Federal Reserve, advocates for reducing the size of the Fed's balance sheet while simultaneously lowering the federal funds rate to offset the tightening effect.
It is estimated that private credit funds have approximately 25% of their exposure in software companies.
There are predictions that if the conflict in the Straits of Hormuz is not resolved by mid-April, the oil market could shift from a 'flow' problem to a 'stock' problem, causing prices to spike to $150-200 per barrel.
Federal Reserve Chair Jerome Powell recently stated at Harvard that monetary policy is "in a good place," a phrase he has previously used to signal no intention of changing policy.
According to sources in the repo market, the U.S. financial system was close to a meltdown when the first Trump-era tariffs were announced, and a crisis was averted only because President Trump pulled back on the initial plan.
Due to classification methods where companies like healthcare software firms are not labeled as "software," the true exposure of private credit to the software sector is likely over 30%.
During the Great Financial Crisis, large banks were effectively levered 40-to-1 after accounting for off-balance-sheet items, which is double the leverage they have today.
Many software companies acquired by private equity between 2018 and 2022 will face significantly higher interest rates when they begin refinancing their debt in the coming years, questioning their ability to service the new debt.
The rise of AI competition will likely prevent SaaS companies from raising prices, may force price cuts, and will slow their growth rates, leading to a re-evaluation of their valuations.