Vital Statistics:
Stocks are lower this morning on no real news. Bonds and MBS are up small.
The upcoming week will be dominated by the FOMC meeting on Tuesday and Wednesday. We will get a fresh set of economic projections, along with a new dot plot. We will get retail sales, new home sales and existing home sales as well.
Consumer sentiment slipped in March, according to the University of Michigan Consumer Sentiment Survey. “Consumer sentiment slid another 11% this month, with declines seen consistently across all groups by age, education, income, wealth, political affiliations, and geographic regions. Sentiment has now fallen for three consecutive months and is currently down 22% from December 2024. While current economic conditions were little changed, expectations for the future deteriorated across multiple facets of the economy, including personal finances, labor markets, inflation, business conditions, and stock markets. Many consumers cited the high level of uncertainty around policy and other economic factors; frequent gyrations in economic policies make it very difficult for consumers to plan for the future, regardless of one’s policy preferences. Consumers from all three political affiliations are in agreement that the outlook has weakened since February. Despite their greater confidence following the election, Republicans posted a sizable 10% decline in their expectations index in March. For Independents and Democrats, the expectations index declined an even steeper 12 and 24%, respectively.”
Inflationary expectations surged, with year-ahead expectations rising from 4.3% to 4.9%. Long run inflationary expectations increased as well, from 3.5% to 3.9%.
The Fed pays attention to inflationary expectations, so these numbers are concerning. That said, inflationary expectations matter if they affect behavior. If it causes consumers to front-load purchases, it could exacerbate shortages. If it causes workers to negotiate higher pay packages, it could entrench inflation.
The concerns about the economy and the labor market speak to weaker consumer spending and negotiating leverage for workers. So while inflationary expectations have risen, it doesn’t look like behavior is going to change.
In the quest to modernize payment platforms, IMBs are searching for ways to streamline expense reporting, reduce manual processes and increase efficiencies. Some IMBs have discovered how to simplify their businesses by turning their accounts payable into a profit center with solutions from Western Alliance Bank.
Western Alliance Bank’s Specialized Mortgage Services Group offers cash management solutions independent mortgage bankers can count on. One solution: their commercial credit card program that automates travel and expense reporting and accounts payable spending. With quick reconciliation and robust reporting, you gain more than time savings — you can also gain revenue share. Want to create a conversation piece? Customize your card with your name and logo.
“IMBs have had to juggle a lot the past few years, and automating clerical functions can make their jobs simpler and more efficient. With our robust commercial card program, our clients can access streamlined payments and reconciliation, automated expense posting, flexible billing, and real-time fraud monitoring and support, plus earn revenue share on their spend,” says Chris Martin, Director of Treasury Management Sales with Western Alliance Bank’s Specialized Mortgage Services Group. “It’s an opportunity for clients to rethink how they pay their vendors — and gain significant convenience.”
Western Alliance Bank also meets IMBs’ needs for efficiency through an integration with leading technology provider Modern Treasury. With Modern Treasury’s powerful REST API platform, bank clients can use centralized and connected financial data to help scale and automate payments, reconciliation and reporting across all their systems.
To learn more about how Western Alliance Bank can tailor solutions to your business to help drive profitability, consider exploring this article. Or reach out to the Western Alliance Bank team to learn more about how their Cash Management integrations can help your business work smarter. Western Alliance Bank, Member FDIC.
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I am a consultant who has extensive experience in capital markets, secondary marketing, FP&A, budgeting, and servicing. If you think you might have a need, let’s set up a discovery call.
Please reach out to brent@thedailytearsheet.com
