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Mincing no words, Vanguard chief economist slams Fed for failure to make hard data the basis of massive rate cut

Roger Aliaga-Diaz says that such a 'rare measure' by Fed Chairman Jerome Powell was likely used 'prematurely' and could send just the 'wrong signal'

Author Brooke Southall March 3, 2020 at 7:23 PM
Admin:
no description available
Roger Aliaga-Diaz: The high uncertainty around the potential implications of the coronavirus warrant further assessment before taking action of such magnitude.

Matt Crow

Matt Crow

March 3, 2020 — 9:20 PM
It's hard to imagine a scenario in which we'll look back approvingly on today's Fed action. Much of the U.S. market was trading above the 200 day moving average ten days ago, such that all of this could be described as profit-taking. Now the 10 year is trading in basis points, which will encourage lots of refi-activity, which banks will staff up and feed on until the 10 goes back to 1.5%, loan issuance stops, NIMs get crushed, and bank earnings dissolve. Then what?

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Tim Buckley sends shockwaves by retiring as Vanguard CEO after adding $750 billion per year during his stay in the executive suite

The 54 year-old lasted just over six years in the job, delivered on targets, but he also made head-scratching decisions and never solved its technology woes

March 1, 2024 at 3:35 AM

Biz Briefs: Vanguard's tax-loss harvest yields a caveat• Vermont green with envy ... of red states? • CFP Board spends $12 million on bungee metaphor • BlackRock isn't neutral on Credit Suisse • Women are the Goliath of 'David' in UK finance

Tax-loss harvest gains may have some home assembly required, says Jeff DeMaso • Adrian Johnstone is now in the driving seat at Practifi • CFP Board spending just topped $150 million • and Vermont shares some Texas thinking on ESG investing.

March 25, 2023 at 1:32 AM

Biz Briefs: Fidelity says humans beat robots, even for Gen Z • Joe Lonsdale's Opto starts signing RIA test-drivers • Vanguard launches oddly delayed fund • Wealthbox hires, and Dynasty buys

Fidelity wins Delta Airlines business with sweetener • Opto pairs-up with Riskalyze and Merchant • Moonfare raises $15 million • CAIS bucks real estate trend • Vanguard launches "curious[ly]" delayed fund • WealthBox, Dynasty, and others buy and hire.

March 8, 2023 at 3:28 AM

Biz Briefs: Schwab puts checks for $52 million in mail to robo-RIA customers allegedly misled about cash allocations • BlackRock blacklisted (again) • iShares beats NZAM-exiter Vanguard • Fidelity makes first acquisition in eight years • CFP board realizes Moms don't like CFPs

BlackRock gets Kentucky coal in stocking, and Vanguard keeps skating; iShares inches above -- by 2.8% -- Vanguard's annual net new ETF asset haul; Fidelity takes "natural next step" for stock plan business; new CFP chair outlines plans and the DOJ is set to become a major Robinhood shareholder..

January 13, 2023 at 3:01 AM

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