United States
US citizens report better financial health than pre-pandemic
Financial wellbeing boosted by government support and return to work, central bank says
Fed presents two severe stress scenarios to test Covid risks
Limits on share buybacks and dividend payouts may be extended as stress tests emphasise risks
FOMC signals rates likely to stay on hold until 2023
Latest Fed projections say inflation likely to stay below target for several years
People: Shelton unlikely to have enough votes for Fed role
Judy Shelton’s nomination in doubt; Fed appoints new director of monetary affairs
Supply curves may be convex – ECB paper
Findings imply that Phillips curve is convex and fiscal policy is state-dependent, authors say
CFTC report calls for US regulators to take urgent climate action
US should join NGFS, impose carbon price and mandate firms to disclose green risks, report says
Knot warns deviations from global standards must be temporary
“If the US starts distancing itself from international standards, that is quite something,” says Dutch central bank chief
Fed’s new framework will help poorer communities – former Fed official
New approach recognises benefits of long expansion to low-income communities, Stephanie Aaronson says
Influential Fed economist Thomas Laubach dies
Current and former Fed officials pay tribute to the US central bank’s German influencer, who died on September 2
Judging scarcity of reserves depends on Treasuries outstanding – paper
Increase in short-term Treasuries causes money markets to behave, as there is a scarcity of reserves, researchers find
Fed feeling its way with new inflation framework
Average inflation targeting is broadly dovish, and could see rates stay lower for even longer
Raising inflation expectations may depress growth – Jackson Hole paper
More nuanced communication would help public understand state of the economy, say researchers
Uncertainty hampering Fed’s and Congress’s stimulus
Research says uncertain outlook created by pandemic has been a key contributor to size of recession
Average inflation targeting could cut inequality – Fed paper
‘Hank’ models tend to be supportive of Fed’s new approach to inflation targeting, research finds
Fed adopts average inflation target
Powell says FOMC will also allow employment to run above estimated maximum level
People: IMF appoints strategy head
Pazarbasioglu moves back to IMF; Lithuanian president appoints central bank board member
Demand driving fall in US inflation – San Francisco paper
Economic sectors sensitive to Covid-19 saw big drop in demand, researcher finds
DLT could improve US payments – Fed team
Fed’s “FooWire Project” built simulated payments network using DLT platform
Fed paper looks at different CBDC types
“Account-based”, “cash equivalent” and “hybrid” CBDCs all have varying advantages – researchers
Stress test results affect consumer credit – Philadelphia Fed paper
Banks reduce credit supply after worse-than-expected stress test results, researchers find
Former Fed officials urge Senate to reject Shelton
Trump nominee’s views are “extreme”, officials say, as two Republican senators pledge opposition
Mexican sovereign debt faces tighter conditions - SF Fed paper
Liquidity premiums reached record highs in pandemic while foreign holdings fell, researchers find
Podcast: Cleveland Fed director on all things inflation and Covid-19
Robert Rich discusses money supply growth and muted inflation, plus new Fed research
James Bullard on the Fed’s policy review, FSOC and forecasting jobs data
St Louis Fed chief supports average inflation targeting and worries about Treasuries market and non-bank regulatory weakness