Podcast: Understanding how monetary policy shapes SOFR

Core inflation’s downward trend remains intact. Inflation is still above the Fed’s target, potentially keeping short-term rates higher, possibly pressuring bank net interest margins.

The Small Business Optimism Index for February was 98.8, down 0.5 points from January. The Index remains slightly above its 52-year average of 98 but marks the second consecutive monthly decline. The Uncertainty Index fell 3 points from...

The gain in existing home sales being driven by improved affordability. A pickup in home resale activity should lead to increased mortgage originations, while lower rates could lead to a resurgence in refinancing activity.

For settlement activities, tokenized deposits offer banks the benefits of programmability without the limitations of payment stablecoins. 

Consumer inflation expectations in February declined at the short-term horizon and remained unchanged at the medium- and longer-term horizons, the Federal Reserve Bank of New York reported in its most recent Survey of Consumer Expectations.

Consumer credit increased at a seasonally adjusted annual rate of 1.9% in January, with revolving and nonrevolving credit increasing 4.3% and 1.1%, respectively, according to the Federal Reserve.