Fed Chair Jerome Powell said the U.S. job market remains a long way from a full recovery, noting that employment last month was almost 10 million jobs short of last February’s level. “Achieving and sustaining maximum employment will require more than supportive monetary policy.” While echoing President Joe Biden’s arguments in support of his $1.9 trillion Covid bailout bill, Powell also delivered a nuanced rebuttal to some Democrats (like former Treasury Secretary Lawrence Summers) who view that relief proposal as too large. (Bloomberg Economics | Feb 10)
The New York Stock Exchange and Nasdaq have sued their regulator over new rules that would force them to share more data in an effort to increase competition in the sector. The exchanges, along with Cboe Global Markets, filed court petitions against the U.S. Securities and Exchange Commission on Tuesday over an attempt by the regulator to make them provide expanded access to their data feeds. (Financial Times | Feb 9)
The Securities and Exchange Commission will give more power to its enforcement staff to launch investigations, an early sign it plans to become more assertive under the Biden administration. The move by Wall Street’s main regulator allows more enforcement supervisors to authorize investigations, permitting about 36 senior officials at the agency to subpoena companies and individuals for records or testimony. (The Wall Street Journal | Feb 9)
The Federal Reserve is at risk of getting schooled in a classic adage: Be careful what you wish for. Daniel Tenengauzer, head of markets strategy at Bank of New York Mellon Corp., is warning that if inflation gets hotter than the Fed’s new policy is aiming for, it may trigger widespread bond selling that ripples throughout other markets. That may force the central bank to adopt a tool to cap long-term yields — known as yield-curve control, or YCC, he says. (Bloomberg Economics | Feb 9)
The Securities and Exchange Commission urged companies to provide specific disclosures if they plan to sell equity during periods of extreme market volatility. The move came as U.S. regulators evaluate actions to take in response to the recent surge in the share prices of GameStop Corp. and other companies. (The Wall Street Journal | Feb 8)
