This past week representatives of the Federal Bank of Atlanta invited HiddenLevers to be included in its Regional Economic Information Network (REIN). The REIN is an extensive outreach program focused on meeting with business leaders to better understand economic trends, opportunities, and challenges. After almost a decade of consistently fresh economic insight by the HiddenLevers economic think-tank, the Atlanta Federal Reserve recognized their contribution by including them in their 2019 Beige Book analysis.
“When we saw HiddenLevers announce it was shifting headquarters from New York to Atlanta we knew this was a firm we wanted to talk to,” said Rebecca Gunn, Vice President and Regional Executive of the Federal Reserve Bank of Atlanta.
HiddenLevers Founders Praveen Ghanta and Raj Udeshi sat down with Gunn to share viewpoints on hot-button domestic economic issues and give a deeper look into the War Room, a monthly program updating the HiddenLevers Scenario Library.
“It’s humbling to be recognized by the Fed in this way,” said Udeshi. “The on-going relationship between HiddenLevers and the Atlanta Federal Reserve will be reassuring for advisors and portfolio managers who use HiddenLevers scenarios to connect with the end investor.”
Combating Fear Mongering
The Atlanta Fed and HiddenLevers discussed how headlines that overemphasized downside scenarios like Trade War or the potential for a Tech Bubble drown out real news around the US economy.
Gunn was particularly impressed by the HiddenLevers Scenario Library, a comprehensive palette of forward-looking economic events, with infographics and simple language to help users understand the macro-risk parity of outcomes.
“Every economic topic in the zeitgeist today can have a good, bad, or ugly outcome tomorrow,” said Ghanta. “The Fed pushed forward this paradigm of macro-risk parity in its own stress testing of big banks. The Fed’s own stress test is a scenario our customers can use with smaller portfolios. I am blown away that the Fed is taking notice of how we are extending their template for economic analysis.”
Ghanta and Udeshi highlighted how registered investment advisors, financial planners, and other professionals with a fiduciary duty use the HiddenLevers interactive toolkit to separate impactful economic events from momentary noise.
“Real fiduciaries are combatting sensationalist headlines from the financial media. It’s good to show economic perspectives that put equal emphasis on positive outcomes,” said Udeshi. “Delivering a forward-looking perspective that is data focused and not overly committed to downside risk is what HiddenLevers enables.”
The econometrics regression engine inside HiddenLevers is institutional-grade, but a big part of the company’s success is rooted in its image-centric interface. This falls in line with Federal Reserve Chairman Jerome Powell’s goals to enhance public trust through dialogue. With its hip scenario library and interactive stress testing, HiddenLevers users can contrast how client portfolios and their own allocation models react to different upside and downside macro conditions.
“Art direction is so important – it’s what resonates with people because art tells what prose cannot. We’re not all quants,” said Udeshi.
Sign up for a free 7-day trial and get started with our Fed Stress Testing scenario or one of our many scenarios in the Scenario Library.