World Perspectives

Narrowing the Fed’s Balance Sheet

In addition to raising the federal funds rate at its 13-14 June, the Federal Reserve addressed the issue of how it will roll off its massive holdings of securities.

At its 13-14 June, the Federal Open Market Committee (FOMC) raised the federal funds rate by a quarter-percent (see Ag Perspectives, 14 June) to a target range of 1-1.25 percent. This is the fourth rate hike since December 2015, and the FOMC’s post-meeting notes indicated another one is likely in September.After its May meeting, the FOMC decided to maintain its existing policy of reinvesting all principal payments from its holdings of agency debt and agency mortgage-backed securities back into agency mortgage-backed securities along with rolling over maturing Treasury s...

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From WPI Consulting

Forecasting developments in production agriculture

On behalf of a private U.S. agricultural technology provider, WPI’s team generated an econometric model to forecast the movement of concentrated corn production north and west from the traditional U.S. Corn Belt. WPI’s model has subsequently provided quantitative support to a multi-million-dollar investment into short-season corn variety development. WPI’s methodology included a series of interviews with regional grain elevators and seed consultants. Emphasizing outreach and communication with stakeholders who possess intimate sectoral knowledge – on-the-ground insights – is a regular component of WPI’s methodologies, made possible by WPI’s ever-growing network of industry contacts.

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