United States
First CPMI-Iosco peer review finds gaps in trade repository principles
Peer review of Principles for Financial Market Infrastructures in Europe, Japan and the US finds jurisdictions have made good progress with CCPs, but gaps remain among trade repositories
Yellen defends relationship with White House
Fed chair tells congressional committee she did not discuss monetary policy with Treasury secretary or executive branch of government, when quizzed on ‘near-weekly’ meetings
Fed officials grapple with lift-off details
Minutes from January FOMC meeting reveal extensive discussion about the tools at the Fed’s disposal when it wants to raise rates; idea of higher cap for overnight RRPs explored
Fed’s Powell sets ‘high bar’ for leaning against credit cycles
Governor Powell says leaning against the cycle through supervisory policy would ‘almost surely interfere’ with traditional function of capital markets
Fed hawk Fisher receives Mexican eagle award
Richard Fisher granted Order of the Aztec Eagle by Mexican president; Agustín Carstens praises the Dallas Fed president’s use of ‘simple and straightforward’ language
Fed officials see ‘audit’ bill as threat to independence
Charles Plosser is the latest FOMC member to criticise bill that could see monetary policy decisions reviewed; Richard Fisher and Jerome Powell also raise concerns
Minneapolis Fed research criticises China's 'quid pro quo' policy
Staff report finds ‘significant impact’ on innovation and welfare from China’s continued policy of exchanging market access for technology – good for China, but not for advanced economies
Curbs on rehypothecation may boost welfare, St Louis Fed paper finds
Researchers find rehypothecation boosts welfare, particularly as inflation rises, but it generally goes too far, implying there are benefits to regulatory intervention
Fed challenges payments industry to get quicker and safer
New document sets out strategies for improving US payment system; Federal Reserve will only consider expanding role as service provider if private sector falls short
Productivity performance sparks uptick in US entrepreneurship, finds Boston Fed paper
‘Modest improvement' in 2012 and 2013 follows a 'significant decline' in firm creation after the financial crisis to the lowest level since 1977
Canada deputy warns lower oil prices likely 'to be bad' for the country
Timothy Lane says gains from recent price drop ‘will be more than reversed' as hit to local producers ‘spill over to the rest of the economy'
Government spend no more effective at ZLB – NBER paper
US government spending did not become more powerful when monetary policy hit a zero lower bound, according to a working paper published by the National Bureau of Economic Research
People: Philadelphia Fed gets new directors; Paraguay central banker named finance minister
Jon Evans and Carol Johnson are appointed to the Philadelphia Fed board of directors; Central Bank of Paraguay loses member of the board of directors to the government; and more
Obama to nominate community banker to Fed board of governors
Move follows bipartisan criticism against the prevalence of academics in the US central bank's top ranks; Fed announces new head of monetary affairs
Pent-up wage cuts an 'important force' during recovery, San Francisco Fed researchers find
Many firms were unable to reduce wages during the recession, and the 'pent-up' reductions have influenced the recovery, argue authors
Kocherlakota announces Fed departure
Minneapolis Fed president and FOMC dove to step down when his term draws to a close in February 2016
Fed proposes tougher capital surcharges on biggest banks
US central bank aims to go beyond Basel framework on loss-absorbing requirements for GSIBs; Failure to comply would lead to restrictions on dividends and bonuses
Basel Committee: US and EU capital rules still falling short
Basel Committee’s second assessment of compliance with Basel framework finds both EU and US are not complying in all areas, but both argue deviations are justified
Brainard says Federal Reserve monetary policy can ‘lean against the wind’
FOMC member says limited range of macro-prudential tools means Fed is more likely than some other central banks to use monetary policy for financial stability purposes – but there are risks
Richmond Fed economist sees obstacles to Islamic finance in the US
Islamic finance in the US suffers from poor liquidity and problems meshing with the regulatory environment, researcher says
Oil price forecast errors impact wider inflation estimates, Banque de France study finds
When there is ‘large’ volatility in oil prices, the pass-through of forecast errors to inflation estimates increases, research finds
No evidence US prices were ‘more stable or less uncertain' before or after WWII
Experience shows ‘well-managed fiat regime' can achieve same level of moderation in price swings as gold standard, according to Bank of Korea working paper
BoJ paper finds US crisis policy more impactful on markets than European measures
Authors test policy responses to the global financial crisis including monetary, liquidity and financial sector policies, finding US announcements led to higher abnormal returns
Yellen: Economics profession can benefit from more diversity
Janet Yellen argues economies ‘develop and become more stable through diversification’, noting the failure of economists brought a public debate about the health of the profession