North America
Ex-governor says Fed should use Treasury derivatives in crisis
Doing so could split response from monetary policy and hedge interest rate risks, argues Jeremy Stein
Carney to direct BoC to administer open banking and stablecoins
PM’s first budget plan includes funding allocation for central bank to administer relevant legislation
Banks grapple with Fed’s double deadline on stress-test plans
Supervisor consulting simultaneously on next year’s test scenario and broader model changes
Cook: US labour market solid, inflation to remain elevated
Governor differs from fellow members of Fed board in first speech since Trump’s attempted dismissal
Posen predicts Supreme Court will side with Cook
However, PIIE president tells panel that justices are still likely to undermine Fed independence
Fed accepts wealth redistribution at top, says ex-Kansas City chief
Hoenig calls for new accord with Treasury, as fellow former governors defend Fed independence
Stablecoins to trigger rise in demand for Treasuries – study
Authors say sector’s growth could take demand from around $300bn today to $2trn by 2030
Fed cuts rates with dissenting votes in both directions
Risks to employment and prices split FOMC three ways
Bank of Canada makes modest rate cut
Economists disagree over wisdom of decision at time of above-target inflation and soft labour markets
Former Kansas City Fed chief sounds alarm over banks’ leverage
Hoenig says largest lenders are not adequately capitalised for their risks
Bessent includes former Lehman banker on Fed shortlist
Rick Rieder joins Bowman, Hassett, Waller and Warsh in running to replace Powell
Miran threatens Fed independence and lacks credible analysis, say experts
Economists disagree with governor's assessments of neutral rate and forthcoming inflation
US long-term unemployment uptick worries researchers
Minneapolis Fed authors point to ‘large and consequential trend’ upwards
Fed researcher makes case for liquidity support for non-banks
Central clearing, liquidity regulations and balance sheet policies may be key, says author
Waller proposes ‘skinny’ master accounts for Fed payment services
New facility would enable firms to access Fed services without having to go through third-party lenders
Machine-to-machine could be future of payments – study
Existing 402 web protocol, coupled with AI, could enable frictionless transactions, says author
US inflation regime persistently above target now – Fed economist
Price rises are broad-based and have significantly impacted expectations says researcher
AI, low productivity, and trade in focus at G30
Georgieva, Bailey and Lagarde speak on stretched AI evaluations and distortionary trade policies
Miran accuses FOMC members of alienating conservatives
‘Singling out one set of policies’ can make conservatives ‘feel they’re opposed to them’, said Miran
Powell defends policy stance and balance sheet
Fed chair stands firm, amid criticism from Bessent and others
US inflation expectations at risk of de-anchoring – Boston Fed study
Authors say post-Covid spike has altered perceptions of future price stability
Diverse opportunities lead to more resilient labour markets – study
Minneapolis Fed authors say economic concentration makes it harder for areas to recover from shocks
How FOMC divisions could be a strength, not a weakness
Fed watchers say disagreements make for better policy, provided governors are not in hock to government
Sovereign defaults fell in 2024, says Bank of Canada study
However, debt service payments still high as interest rates remain elevated