United States
NBER paper estimates demand for bank reserves in US
Fed needs global estimates of demand curve slope to maintain interest rate control, authors say
Barr to review bank oversight, promising nimbler supervision
Fed vice-chair suggests “reverse stress tests” to measure what would break banks
Why fear, paranoia and distrust swirl around CBDCs
Populists and conspiracy theorists are exacerbating public concern about retail CBDCs. What can central banks do about it?
Bank failure déjà vu
New bank capital rules were meant to ensure failures would be less frequent and resolution not involve taxpayer money. Then came the collapse of Silicon Valley Bank and Credit Suisse, writes Jesper Berg
Fed holds policy rate steady
Powell says conditions for lower inflation are coming into place, and July will be a “live meeting”
Senior US officials criticise new third-party risk guidance
Members of Fed and FDIC boards object to vagueness and burdens on smaller banks
Fed contemplates rate hike or ‘skip’
Top officials indicate the terminal rate is not yet reached – but a pause is possible
Saudi SWF merges golf outfit with US rival
PIF ends legal disputes and becomes a leading power in the sport
Data privacy laws can boost fintech lending – BIS paper
Study finds Californian law led to more data being shared with fintech firms
SEC charges Binance and Coinbase
World’s largest crypto exchanges accused of illegal operations at expense of investors
Rule-setters need to heed their own advice
The US risks a reputation for failing to meet standards to which it holds others
People: April to June 2023
A round-up of central bankers in the news and on the move during the past three months
Boston Fed paper looks at wider impact of banking stress
High levels of leverage magnify impact of bank crises on output and employment
OCC will target ‘persistent weaknesses’ in US banks
Updated guidance introduces tougher approach to non-compliant banks
US banks need higher equity capital levels, Kashkari says
“Essentially unlimited deposit insurance” poses systemic risk, says Minneapolis Fed president
Bernanke and Blanchard reassess causes of inflation surge
Economists who predicted surge misunderstood underlying causes, study finds
Financial security of US households ‘fell sharply’ in 2022
Inflation comes first in list of financial worries, Fed survey finds
NY Fed and MAS test distributed ledger CBDC payments
System averaged 6.48 payments a second, with peak of 47 payments a second
Robert Lucas, 1937–2023
Nobel Prize-winner became famous for “revolutionary” work on rational expectations
US household debt passes $17 trillion
Mortgage originations fall to lowest level since 2014
Book notes: The Federal Reserve: a new history, by Robert L Hetzel
This book should become the standard reference for scholars
Quantitative tightening and forward guidance need rethink, say economists
Forward guidance removes options to respond to shocks, say academics and experts
Fed’s Bowman defends regulatory ‘tailoring’
Governor calls for independent review of SVB collapse, dismissing Barr report
Florida adopts anti-CBDC law
Governor has denounced US digital currency, though there are no concrete plans for one