Hilsenrath Analysis: Friday’s Jobs Report Assures Global Central Banks Going in Two Directions

    

We are having fun with an interest-rate rise countdown clock (see the picture). They can be reset if conditions change, but we currently have them set to the mid-June FOMC meeting date. According to this WSJ article , it looks like we might be on target with our prediction.

yellen clock 3

Of course, the main point is that rates have to rise at some point, so when is not as important as being ready when they do. This is going to be the first time in history that we will enter a cycle like this where some banks are armed with data and analytics to respond quickly (deposit pricing is arguably the most important area of concern), and other banks won’t be. Because of the risk of deposit flight, as one of our customers said, “This may be the first rising-rate environment where some banks actually go out of business.”

Not that you need a reminder, but if you want your own Janet Yellen countdown clock (it is a great conversation starter), just send your request to david.rand@nomissolutions.com.

About The Author

As President and CEO of Nomis Solutions, Frank is responsible for strategy and day-to-day operations of the company and steering the development of its Pricing and Profitability Management solutions. Frank joined Nomis Solutions in 2005 as VP of Sales and Marketing.