Press releases and other resources for media.

6 10, 2021

Financial Times, Wednesday, October 6, 2021

2021-10-07T12:53:00+00:00October 6th, 2021|Press Clips|

Covid revealed what science can do when funding is found
By Gillian Tett

When Covid-19 hit America in the spring of 2020, Jean Bennett, a professor of biomedicine at the University of Pennsylvania, started killing her prized collection of research mice. One reason was that the lockdown partly shuttered laboratories. Another was that the battle against the virus sucked resources, money and people away from other medical problems such as blindness, which is what Bennett’s team studies. …“We call this the Valley of Death,” says Karen Petrou, a financier who wrote the Foundation Fighting Blindness report and is deeply involved in raising money for medical research, not least because she happens to be blind. The issue is that while scientists often scrape together enough public-sector cash to do initial breakthrough studies, they struggle to get money to develop them — until their concepts are proven. “That’s why you read headlines about breakthrough research, but then nothing more comes of it,” says Petrou. She wants to find a solution to the “Valley of Death” so has created a proposal for the US government to issue $30bn worth of “BioBonds” that would be sold to private investors, with the government and philanthropic organisations on the hook to take the first chunk of any losses if something goes wrong.

https://www.ft.com/content/258e9307-b58d-4c55-bdd3-2da47193456c

5 10, 2021

Voice of America, Tuesday, October 5, 2021

2021-10-08T19:12:27+00:00October 5th, 2021|Press Clips|

Colleagues’ Stock Trading Scandals Slow Fed Chief Powell’s March to Renomination
Rob Garver

With time ticking down on his term as chairman of the U.S. Federal Reserve Board, Jerome Powell’s reappointment to the post looks less certain than it did just a few weeks ago, as left-leaning Democrats hammer away at a series of scandals involving senior Fed personnel.  On Monday, Powell’s chief antagonist in Congress, Senator Elizabeth Warren, released a letter to the head of the Securities and Exchange Commission asking the agency to investigate “ethically questionable” securities transactions by the presidents of two of the Federal Reserve’s district banks, and the Fed Board’s vice chairman….In a note to clients last week, Karen Petrou, managing partner of Federal Financial Analytics, wrote, “One of Mr. Powell’s strengths in the renomination battle has been divisions among Democratic progressives, making this resonant scandal particularly costly to his otherwise-strong position within the Biden Administration.”

https://www.voanews.com/a/colleagues-stock-trading-scandals-slow-fed-chief-powell-s-march-to-renomination-/6257106.html

3 10, 2021

Financial Times, Sunday, October 3, 2021

2021-10-06T12:53:30+00:00October 3rd, 2021|Press Clips|

The left’s low-rate fantasy makes inequality worse
Easy money is not creating better jobs, it’s feeding market bubbles that make the asset-rich richer

By Rana Foroohar

Unlike many on America’s left, I’ve always been sceptical that ultra-low interest rates make things easier for the poor. Keeping rates too low for too long encourages speculation and debt bubbles. …And despite a bit of wage growth over the past six months, incomes on an inflation-adjusted basis are still below where they were in 2019, says Karen Petrou, managing partner of Federal Financial Analytics. “This is the Kool-Aid: that ultra-low rates promote employment,” she says. “But they don’t.” Most people work to make money, and while central bankers can brew up asset inflation, they can’t create good middle-class jobs. Only business, helped along by the right policy incentives, can do that.

https://www.ft.com/content/ee70fa9f-45ac-4bd7-a0b0-694bbdffdb75

29 09, 2021

American Banker, Wednesday, September 29, 2021

2021-09-30T20:10:40+00:00September 29th, 2021|Press Clips|

OCC nominee faces rocky path to Senate confirmation

By Brendan Pedersen

It took the Biden administration nine months to settle on a nominee to run the Office of the Comptroller of the Currency, passing over other candidates along the way. The process to get Saule Omarova approved by the Senate does not appear it will be any easier. To say that Omarova’s nomination has stoked controversy is putting it lightly. Industry trade groups have all voiced public concerns about her views as an academic, suggesting some moderate Democrats may vote against the confirmation….Some analysts suggest Omarova’s nomination — seen by some as a dramatic win for progressives such as Sen. Elizabeth Warren, D-Mass., and Senate Banking Committee Chair Sherrod Brown, D-Ohio — may be an attempt to persuade liberals not to fight a potential reappointment of Fed Chair Jerome Powell. “Professor Omarova is more than progressive and lacks the agency and industry credentials that strengthen other controversial appointees such as Gary Gensler and Rohit Chopra,” said Karen Petrou, managing partner of Federal Financial Analytics, in a research note this week. “This résumé gap makes confirmation still more questionable, but I doubt confirmation was the point here.”

https://www.americanbanker.com/news/occ-nominee-faces-rocky-path-to-senate-confirmation

28 09, 2021

Bloomberg, Tuesday, September 28, 2021

2021-09-28T16:52:28+00:00September 28th, 2021|Press Clips|

Crypto’s Road Gets Even Harder With Biden Pick for Bank Watchdog
By Jesse Hamilton and Akayla Gardner

President Joe Biden may have just dashed any remaining hopes that Washington would warm to cryptocurrencies under his watch.The White House nominated Saule Omarova last week to lead the Office of the Comptroller of the Currency, all but confirming that U.S. financial regulators will be void of any crypto allies for at least the next three years….The crackdown is global, with China last week announcing a more restrictive ban on crypto transactions and mining. Karen Shaw Petrou, a managing partner at Washington research firm Federal Financial Analytics, said the darkening clouds showed market participants missed an opportunity to find common ground with regulators — and now it may be too late. Crypto “conveniently believed that spouting often dubious inclusion and innovation propositions would forestall regulation,” she said. The sector “was extraordinarily intoxicated with the cool factor.”

https://www.bloomberg.com/news/articles/2021-09-28/crypto-s-road-gets-even-harder-with-biden-pick-for-bank-watchdog?sref=BSO3yKhf

15 09, 2021

Congressional Black Caucus Foundation, Wednesday, September 15, 2021

2021-10-13T17:59:41+00:00September 15th, 2021|Press Clips|

Global Inequality & Central Bankers: The Role of Monetary Authorities in Economic Equity

Hosted by Renita Young

Some have questioned whether central bankers – like the United States Federal Reserve – should get in the business of combatting economic inequity, and associated problems like the racial wealth gap and environmental injustice. Others have argued that central bankers not only have the authority to promote economic equity but that they should become more active in doing so. This remains a global debate. Join Rep. Gregory W. Meeks, Chairman of the House Foreign Affairs Committee, and central bankers from around the world as they consider how best to promote economic fairness and financial inclusion. Great discussion with William E Spriggs, Chris Brummer, Karen Petrou, and Renita D. Young on global inequality, central bankers, and the role monetary authorities should play in ensuring economic equity. Every year, Rep. Gregory Meeks examines progress we’ve made in closing the wealth gap – this year he took it global!

https://www.youtube.com/watch?v=u83kaKx86kM

15 09, 2021

Mises Institute, Wednesday, September 15, 2021

2021-09-16T17:20:27+00:00September 15th, 2021|Press Clips, Uncategorized|

The Fed Is Bailing Out the Wealthy as Everyone Else Pays the Price
By Ryan McMaken

The Federal reserve says that inequality is a problem. At the same, the Fed also pretends to have nothing to do with it.
Last September, for instance, Jerome Powell bemoaned the “relative stagnation of income” for people with lower incomes in the United States, but then claimed the Fed “doesn’t have the tools” to address this issue. Instead, Powell, being the chairman of this ostensibly “independent” and “nonpolitical” central bank, called for the federal government to engage in fiscal policy efforts at income redistribution….In her new book, Engine of Inequality: The Fed and the Future of Wealth in America, Karen Petrou looks in detail at how Fed policy over the past decade—especially quantitative easing (QE) and ultralow interest rates—have benefited the wealthy while leaving most ordinary people behind. Petrou is one of the more interesting and informative analysts examining the financial services sector. As the head of Federal Financial Analytics Inc., she has provided research on the banking sector for more than thirty years, but in recent years she’s become more focused on exposing and examining the unhealthy and destructive effects of Fed policyPetrou takes a different approach from the Austrians. She appears to have arrived at her conclusions from observing the trends and outcomes produced by Fed policy and then working backward into a theoretical framework. The data seems to have prompted her to ask why things have gone …

15 09, 2021

The Hill, Wednesday, September 15, 2021

2021-09-16T14:14:52+00:00September 15th, 2021|Press Clips|

Crypto risk-takers aren’t crazy – they’re just desperate
By Karen Petrou

As we’ve learned the hard way, social media has become a viral force for pandemic-scale political conspiracies. Of course, it’s not the media themselves that do this; instead, it’s the rage many Americans harbor against governmental institutions profitably enabled by social-media colossi. It’s thus unsurprising that companies such as Facebook, which grew to omnipotence fueled by social anger, understand better than establishment financial institutions that economic anger is also growing at an ever more feverish pitch. As a result, what I’ll call viral finance is spreading through every corner of the once staid banking, payment and investing infrastructure. Crafting a new-age financial regulatory framework thus requires a keen understanding not only of how crypto assets work, but also why they work so seductively for the millions now putting their life savings at risk not because they don’t know better, but because they can’t do better any other way.

https://thehill.com/opinion/finance/572411-crypto-risk-takers-arent-crazy-theyre-just-desperate

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13 09, 2021

Wall Street Journal, Monday, September 13, 2021

2021-09-15T17:22:34+00:00September 13th, 2021|Press Clips|

Fed Stock Trading Emboldens Central Bank Critics, Report Says

News last week that leaders of the Dallas and Boston Federal Reserve banks were actively trading stocks and other investments while setting monetary policy continues to reverberate. “Once it might have been acceptable for Fed officials to own lots of stocks and bonds as long as none was issued by the banks that directly executed monetary policy and were also regulated by the central banks”. Karen Petrou of Federal Financial Analytics wrote in a report to clients. “Now of course none of this makes sense,” Ms. Petrou believes the situation as well as other factors, calls into question why quasi private regional…..

https://www.wsj.com/articles/fed-stock-trading-emboldens-central-bank-critics-report-says-11631563548?mod=searchresults_pos2&page=1

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