North America
Chicago Fed study points to AI tail risk for US banks
Authors warn that a risk event could spill across multiple industries
Central bank independence ‘a means to an end’ – Miran
Fed governor says autonomy increases chances of monetary policy being aligned with business cycle
Waller: ‘Skinny’ master accounts can shield Fed from legal risk
Governor also argues that stablecoins are forcing banks to innovate with payments
Cook links stubbornly high US goods prices to Trump’s tariffs
Fed governor, still fighting attempted dismissal, laments stalling of progress on tackling inflation
Lenders use strict covenants to hedge against rate hikes – study
US banks exposed to policy volatility use breaches to cut lending in tightening cycles, authors say
Miran resigns from Trump’s Council of Economic Advisors
Departure from White House role comes after senators on banking committee called for his resignation
Warsh is an excellent pick for Fed chair, says Quarles
Former vice-chair believes Trump’s choice will make policy-makers feel heard
Trump has already made life harder for Warsh, say economists
Experts say president’s actions during selection process stymie Fed’s ability to tackle inflation
Fed risks president’s ire by holding rates
Experts say decision was obvious way to go, given US labour market and inflation figures
BoC holds as governor says Fed independence affects Canada
Analysts disagree over underlying strength of country’s economy
Fed fractures post-SVB consensus on emergency liquidity
New supervisory principles support FHLB funding over discount window preparedness
Trade liberalisation with China increased US wages – study
Fed researchers find ‘long-suspected’ benefits for labour market
Fed pivots to material risk – but what is it, exactly?
Top US bank regulator will prioritise risks that matter most, but they could prove hard to pinpoint
Supreme Court appears sympathetic to Cook
Conservative judges lament the way governor’s removal was handled and risks to Fed independence
Beige Books show promise at predicting recessions – study
LLM data on Fed reports is more accurate at forecasting downturns than yield spread, authors find
Fed study sounds alarm over algorithmic rises in credit limits
Researchers say US lenders are extending too much credit to subprime borrowers
Ricardian equivalence does not hold in reality, study finds
Researchers say consumers do not fully plan ahead for expected tax liabilities
Fallout of criminal probe into Powell continues
Trump’s investigation faces backlash at home, in Congress and abroad
Goolsbee backs Powell and raises tariff concerns
Chicago Fed chief says tampering with independence increases inflation risks
Sticky fears about sticky inflation
Survey finds investors are not yet ready to declare victory on inflation – with good reason
Experts decry ‘show trial’ of Fed chair
Probe slammed as politically motivated attack on Powell for doing his job
New England is pocket of recession risk in US – Fed study
Researchers say overall threat of national downturn is low, but requires monitoring nevertheless
Central bank governors express ‘full solidarity’ with Powell
Lagarde and Bailey among signatories of statement in wake of Department of Justice investigation
Collateral velocity is disappearing behind a digital curtain
Dealers may welcome digital-era rewiring to free up collateral movement, but tokenisation will obscure metrics