United States
Alberto Musalem becomes St Louis Fed president
Musalem will start on April 2 and be a voting member of FOMC in 2025
Repo bankruptcy exemption carries ‘significant costs’ – paper
Apparent liquidity boost from US rule is undermined by greater risk of fire sales, authors say
People: October to December 2023
A round-up of central bankers in the news and on the move during the past three months
2023: The year in central banking
Central Banking’s most-read story this year dissected the crisis at SVB, while other top pieces delved into operating frameworks, third-party risks and international economics
Held-to-maturity assets present banking risks, paper says
Boston Fed research argues SVB failure could mean regulatory re-think
Fed research looks at second-round effects of oil price inflation
Late 2022 oil price rally could cause inflationary pressure as late as mid-2025, paper finds
Riskiest non-banks shrink for first time since 2009
FSB says narrow measure of riskiest firms fell in 2022 as asset price falls hit investment funds
FOMC holds rates again, ending year at 5.25–5.5%
“Committee is proceeding carefully” as inflation recedes, but slowly, says Powell
ECB paper attempts to measure spillovers from Fed policy
Authors use asset price data to estimate global effects of FOMC moves
CFTC sounds alarm on clearing capacity
US regulator warns porting cannot be guaranteed in the event of a large member default
Higher rates will push up firms’ debt costs gradually, says research
Authors warn that financial vulnerability could stem from higher for longer rates
SEC criticised for belt-and-braces ban on volume-based pricing
Legal experts question need for rules to prevent firms disguising agency trades as proprietary
People: Egyptian president extends acting governor’s term
BCIE elects first woman president; Esquivel joins Sheinbaum team; and more
PCE inflation falls in the US
Atlanta Fed president says data suggests inflation will only continue to fall
Heatwave cost Texas 1% of GDP in 2023, says Dallas Fed research
Higher temperatures have significant effects on productivity, but less on jobs, paper finds
ECB paper studies ESG ratings’ effects on debt costs
Downgrades had only temporary effect on US firms’ bond spreads, researchers find
CBDC features will have financial stability effects – Fed paper
Design choices could cut chance of bank runs and disintermediation, authors say
Smaller US banks face unequal real estate risk, paper says
St Louis Fed research finds lenders hold 40% to 75% of commercial real estate debt
Treasuries market is robust, NY Fed officials tell conference
Financial markets need more data transparency, though
Chinese regulators grant Mastercard bank card licence
PBoC gives US firm approval to issue yuan-denominated cards after Xi-Biden meeting
FDIC to review sexual misconduct and discrimination allegations
Agency promises ‘independent review’ as chair faces charges of improper behaviour
Foreign real estate investment increases employment – research
The authors found the properties are often left empty, but drive up home values and employment
US cash usage may have hit its floor, says Boston Fed
Consumers prefer credit cards, the top payment method in 2022, for online payments
US-China trade is falling, Fed researchers find
Fall driven by advanced technology trade, but other US allies are not following suit, paper finds