Federal Reserve System
People: January to March 2023
A round-up of central bankers in the news and on the move during the past three months
Fed raises rates 25bp and signals possible halt soon
Credit tightening may substitute for further rate hikes, Powell says
Yellen flags ‘contagious bank run’ risk
US Treasury secretary pledges small banks will gain 100% deposit insurance if needed
FedNow set to launch in July
Onboarding to instant payment system begins in April, followed by production validation
Central banks step up dollar liquidity support
But initial auction results show little evidence of pressure on dollar funding
What are the systemic lessons of SVB?
Philip Turner says the collapse of SVB reveals deeper issues than many have realised
SNB to lend up to $54 billion to Credit Suisse
Swiss central bank and supervisory authority say bank meets capital requirements
US banking collapses muddy monetary policy outlook
Bank failures raise question of whether Fed can maintain stability while tightening policy
Fed launches supervision review in wake of SVB collapse
Vice-chair for supervision says central bank needs to show “humility” after bank failure
Fed creates new liquidity backstop amid contagion fears
Valuing collateral at par marks significant break with rules on standard liquidity facilities
Run on US bank sparks fears over interest rate risk
Major banks’ shares drop as investors reassess billions of dollars of unrealised losses
US lender tied to FTX goes into liquidation
Federal government investigating California bank linked to failed crypto exchange
Blanchard and Summers say higher inflation likely to persist
Veteran economists say structural factors are likely to push up neutral rate and inflation
To repo or to buy? Non-bank liquidity backstops still elusive
BoE’s Hauser and Fed’s Logan flag major design challenges in building ideal market backstop
Chicago Fed used search firm that employed Goolsbee’s wife
Board says it was aware of Robin Goolsbee’s employment
Book notes: A guide to good money, by Brendan Brown and Robert Pringle
The authors make some good points even if one does not agree with this full-bodied attack on Keynesian economics and inflation targeting
Disinflation may trigger recession, say Mester and Jefferson
Fed president and governor acknowledge policy tightening is uncertain and costly
Marks (and sizes and colours) of distinction
Many central banks make an effort to make cash accessible to blind and partially sighted users
Fed spurns Custodia a second time
Central bank again denies membership application from Wyoming crypto firm
Fed, FDIC, and OCC warn banks over crypto deposits
Risks from crypto firm deposits are correlated, heightened and unpredictable, Fed says
How US demographics complicate the Fed’s job
Ageing population and pandemic legacy are confounding economists’ predictions
Stability under the 2% inflation standard is a chimera
An inflexible standard of value that lets the market decide how much money to produce would be superior, write Brendan Brown and Robert Pringle
Who will replace Brainard at the Federal Reserve Board?
Another empty chair leaves another difficult choice for Joe Biden
BoT’s Sethaput on inflation dynamics, central bank mandates and multi-lateral payments
The Bank of Thailand governor speaks with Christopher Jeffery about the trend towards higher inflation, the sustainable finance challenge, experiments with CBDCs and governance issues related to multi-lateral payments