A statement from Yie-Hsin Hung, President & CEO of State Street Investment Management, tells us, "I'm excited to share that State Street's global asset management business has been rebranded from 'State Street Global Advisors' to 'State Street Investment Management' to better reflect the breadth of solutions and services we offer to investors. Along with our new brand, we have refreshed our logo and brand identity to align closer to our parent, State Street, to create a stronger, more unified presence in the marketplace. Today is just the latest step in our evolution as a firm. In the last year, we've entered into new partnerships, expanded solutions through innovation, and entered new markets -- all to better serve you." (Note: Hung gave a keynote speech at our recent Money Fund Symposium titled, "The Future of Cash. Watch for quotes from this in our upcoming Money Fund Intelligence newsletter.)
She explains, "You will see our new branding appear in our communications and website starting today. While our brand may be evolving, our mission to create better outcomes for our clients and the world's investors won't change and how we partner with you every day won't either. Importantly, this rebrand does not involve any changes to the names, control, or ownership of our legal entities and therefore does not require any action on your part. Please feel free to visit our updated website to view our new look."
A press release explains, "State Street Global Advisors, the asset management business of State Street Corporation (STT), today announced its new brand name: State Street Investment Management. The rebranding highlights the firm's focus on growth and engagement with clients and partners, and its commitment to product innovation, in service of creating better outcomes for the world's investors and the people they serve."
It states, "In developing the new brand identity, State Street conducted research and solicited input and feedback from clients, investors and employees around the world. The update puts a stronger focus on the firm's 'One State Street' approach that aims to enhance collaboration across State Street Corporation and expand offerings for the benefit of investors globally."
Chief Marketing Officer John Brockelman comments, "State Street Investment Management is an essential partner to investors, offering them unparalleled expertise, unique insights, and both innovative and cost-effective solutions. We're excited to unveil a new brand that communicates that promise. These changes to our brand strengthen our value proposition, simplify the way we go to market, and improve our clients' experience across State Street."
In other news, Federated Hermes' Deborah Cunningham writes, "Not the time to lack 'conviction'." She tells us, "One of the numerous costs of President Trump's assault on Federal Reserve Chair Powell is casting monetary policy as black and white. It might have seemed that way decades ago. Before Chair Bernanke essentially opened it to the public, the Fed was a black box. It communicated primarily through the Federal Open Market Committee (FOMC) statement and daily trading operations rather than through speeches, press conferences and Congressional testimony. But monetary policy is as gray as it gets in economics, involving as much opinion as data."
She explains, "Trump's tirades also drown out healthy discussions about the central bank. Had he not issued a screed after the FOMC held rates steady last month, the main story might have been a growing restlessness among officials. Actually, it should be. No participant dissented from the decision, but the June Statement of Economic Projections (SEP) shifted subtly from March's, suggesting a potential divide. While the median 'dot' of the fed funds rate remained at 3.9% -- implying two quarter-point cuts this year -- seven voters indicated zero cuts compared to four in March."
Cunningham says, "Powell's response to the shift was to downplay the significance of the dot plot. 'No one holds these rate paths with a great deal of conviction ... and you can make a case for any of the rate paths that you see in the SEP.' One could ask why policymakers bother to produce the SEP if they do not have 'conviction.' Perhaps they actually don't, as there is speculation the Fed might alter the dot plot in its soon-to-be-released updated policy framework. In any case, it seems we won't see a rate cut until September."
She adds, "In the face of withering criticism, it would have behooved Powell to be resolute in his opinion that increased tariffs and intensified geopolitical conflicts could put upward pressure on inflation. After all, his stance has been to avoid the policy mistakes of the 1970s, when the Fed lowered rates too soon and inflation reaccelerated. On this point, he has the backing of most of the FOMC; members raised the Core PCE levels they expect to see in the near future."
Cunningham comments, "One member who seems close to dissenting is Governor Christopher Waller. Citing the weakening labor market, he said he would support a rate cut at July's meeting. But he was appointed by Trump and might be auditioning to succeed Powell. Speaking of that, the Wall Street Journal reported that Trump might take a path we knew was possible: naming the person he will appoint to succeed the Fed chair far earlier than is typical. The newspaper floated Waller, Fed Governor Kevin Warsh, National Economic Council director Kevin Hassett, Treasury Secretary Scott Bessent and former World Bank President David Malpass. That's a lot of names, though. By the time it is sorted out, it already might be time to announce the nominee."
Finally, she tells us, "Whatever the exact placements of the dots, cash managers will be happy for rates to decline only slightly and gradually. At the annual Crane Data Money Fund Symposium, held in late June in Boston, optimism reigned. Many of the attendees and speakers professed confidence that industry money market fund assets will remain above $7 trillion, with some expecting they will approach $8 trillion. If rates do fall by 1 percentage point by the end of 2026, as the SEP also indicated, yields should still top 3%, likely remaining attractive to investors."
Cunningham also says, "Innovation was a focus at the event. Discussions often touched on the digital future, primarily stablecoin and blockchain. The royal court's tech counselor has the ear of King Cash these days, and the sentiment in Boston was that digital liquidity products will grow in stature and number."
