Press Clips2021-05-24T20:16:05-04:00

MarketWatch, Tuesday, April 19, 2022

Commodity prices are going haywire, prompting fears of the next financial crisis By Chris Matthews The prices of commodities including oil CL00, -5.00%, wheat W00, -2.04% and palladium PA00, -2.56% have surged this year as much of the global economy shakes off COVID restrictions and as Russia’s invasion of Ukraine has led to a key commodity-exporting region to be cut off from the the rest of the world. This volatility has not only helped fuel levels of inflation not seen in 40 years —market observers are warning that it could put the stability of the global economy at risk unless regulators and central banks wake up to the threats posed.“One after another development related to Ukraine is exposing the long standing flaws in the increasingly obsolete post-Second World War framework” of global trade and financial regulation, Karen Petrou, managing partner of the financial-policy think tank Federal Financial Analytics, told MarketWatch. [...]

April 19th, 2022|Categories: Press Clips|

CFA Society Minnesota, Thursday, April 14, 2022

Putting Investors First: Is the Fed Fueling Inequality? + Society Social "Karen Petrou, one of the foremost global experts in financial regulation, kicked off a heated debate last year when she published her book, Engine of Inequality: The Fed and the Future of Wealth in America. She then followed up with a July op-ed in The New York Times, "Only the Rich Could Love This Economic Recovery." Baird Vice Chairman John Taft will moderate a discussion with Karen on why she believes "the U.S. central bank has played a direct, if wholly unintended, role in driving income and wealth inequality to astonishing heights." https://cfaminnesota.cfasocietyevents.org/event/60bde846-83b4-451b-b0c6-54ace0de53f3/summary

April 14th, 2022|Categories: Press Clips|

Marketplace, Thursday, April 13, 2022

What JPMorgan Chase’s earnings report can tell us about the state of the economy By Matt Levin We are in the thick of earnings season — that procession of corporations telling shareholders how they’ve been doing over the last three months. As usual, one of the first to report was JPMorgan Chase. ..“A credit reserve is the equivalent of a rainy day savings account, and the bank just put more money in their rainy day account,” said Karen Petrou, co-founder of Federal Financial Analytics. Some of the extra money is a hedge against trouble with European loans and some of it is a hedge against loan defaults here at home. https://www.marketplace.org/2022/04/13/what-jpmorgan-chases-earnings-report-can-tell-us-about-the-state-of-the-economy/

April 13th, 2022|Categories: Press Clips|

Financial Times, Wednesday, April 13, 2022

Central bankers cannot afford to ignore the pain in commodities By Karen Petrou In the midst of chaos there is always volatility, and the commodities sector is very much feeling the pain. This has led to growing speculation that central banks will step in if unprecedented price swings show signs of systemic impact. I do not know any central banker who wants to bail out commodities, but if market stress turns systemic, they will act. Indeed, even if the stress seems manageable, they may intervene if they believe public welfare is at risk when core commodities go from pricey to prohibitive.... https://www.ft.com/content/f7945950-e02e-4064-b7f7-3846dd19675f  

April 13th, 2022|Categories: Press Clips|

The Harvard Club of Washington, Tuesday, April 12, 2022

Host Kevin Corke: In Engine of Inequality, Petrou offers pragmatic solutions for creating more inclusive monetary policy and equality-enhancing financial regulation.   How the U.S. Federal Reserve inadvertently – but dramatically – exacerbated U.S. income and wealth inequality after 2010. Approaching the problem from a pragmatic, market-focused perspective, Karen demonstrates how the combined force of post-2008 monetary and regulatory policy made Americans more unequal, the financial system even more fragile, and voters angrier. https://hcdc.clubs.harvard.edu/article.html?aid=2255  

April 12th, 2022|Categories: Press Clips|

American Banker, Monday, April 4, 2022

Federal Home Loan banks' purpose called into question as advances drop By  Kate Berry As banks rack up record levels of deposits, the Federal Home Loan banks' core business of providing liquidity to member institutions is drying up, leading some critics to question the institutions' long-term viability. The lifeblood of the Home Loan banks — advances to banks, credit unions and insurance companies — plummeted 20% last year to $350 billion, its lowest level in 15 years. The Home Loan banks say the decline is part of the normal ebb and flow of the market....“The Home Loan banks are very important institutions and they really warrant modern-day scrutiny,” said Karen Petrou, co-founder and managing partner of Federal Financial Analytics. “They’ve always flown under the radar because Fannie and Freddie are huge and take up a lot of bandwidth.” https://www.americanbanker.com/news/federal-home-loan-banks-face-criticism-calls-for-independent-advisory-committee    

April 4th, 2022|Categories: Press Clips|

Bloomberg, Tuesday, March 29, 2022

Financial Sanctions Call for a New Bretton Woods Framework By Karen Petrou After World War I, the great powers decided on reparations to punish an aggressor for its carnage. After World War II, the great powers turned instead to reconciliation, creating the Bretton Woods Agreement to entice aggressors into good statecraft to gain access to a rules-based global financial order. Now, the great powers are reasserting themselves with a new kind of reparations: sanctions and even expropriations. We shall see if aggressors are dissuaded from still worse, but the post-1945 global-financial-policy construct is doomed. Given the vital importance of stable finance, it’s not too soon to think about what must come next to prevent 2022’s reparations from ending as disastrously as a century ago.... https://www.bloomberg.com/opinion/articles/2022-03-29/financial-sanctions-call-for-a-new-bretton-woods-construct?sref=BSO3yKhf

March 29th, 2022|Categories: Press Clips|

Few & Far Between Podcast, Wednesday, March 23, 2022

Biorasi’s CEO, Chris O'Brien, welcomes Karen Petrou and David Brint for an in-depth discussion on BioBonds and how they can jumpstart funding in clinical research for rare disease and other disorders. https://few-far-between-conversations-about-rare-disease-research.castos.com/episodes/episode-18-karen-petrou-and-david-brint-biobonds

March 23rd, 2022|Categories: Press Clips|

American Banker, Sunday, March 13, 2022

What's next after Biden's crypto order By Claire Williams, Kyle Campbell President Biden’s long-awaited executive order on cryptocurrency was met with cautious optimism from much of the finance industry, but with so many important details unresolved, it's far from certain what the policy outcome of the order will ultimately be....“The president has no authority to order the Fed to do anything, but what he can do and what he has done is tell the central bank that the White House believes that a CDBC may well be vital,” Karen Petrou, managing partner of data firm Federal Financial Analytics, said. “This is a request the Fed cannot ignore.” https://www.americanbanker.com/list/what-bidens-crypto-order-means-for-banks

March 13th, 2022|Categories: Press Clips|

Marketplace, Monday, February 28, 2022

How sanctions will prevent Russia from using its $600 billion-plus rainy day fund to prop up the ruble By Mitchell Hartman The combination of the Ukraine war itself and the international sanctions it triggered caused the ruble to tank Monday morning. The Russian currency started the trading day by losing a quarter of its value. ​Russia’s central bank had a plan in place to prop up the ruble in case of emergency — a rainy day fund worth more than $600 billion, comprising assets parked in banks and institutions all over the world....“The point of these sanctions is to make it impossible for Russia to use its reserves,” said Karen Petrou, at Federal Financial Analytics. She pointed out that U.S. and European authorities are freezing, not seizing, Russia’s foreign exchange reserves. “It doesn’t take anything from Russia. Russia still has its reserves, but it can’t use them. They’re useless, they’re [...]

February 28th, 2022|Categories: Press Clips|
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