United States
Narrow bank TNB hits back at Fed regulatory proposal
Fed overreaching by attempting to rewrite its chartering authority, TNB says; investment firm DE Shaw also reveals intentions to launch a narrow bank
Bullard says Fed may need to cut rates ‘soon’
Market-implied probability of a cut in September now above 80%
A powerful new force – Central banks and climate-related risks
Increasing global concern about climate change is causing central banks to take notice of the issue and its potential implications. Frédéric Samama, head of institutional client coverage at Amundi, examines the findings of Central Banking’s survey on…
US labour force participation driven by fewer outflows – San Fran Fed researcher
Hot economy could be making workers less likely to leave labour force, Regis Barnichon says
Potential Fed nominee wants changes to interest rate policy
IOER hurts private sector entrepreneurialism and gives banks wrong incentive, Judy Shelton says
Fed’s Quarles casts doubt on leaning against the wind
But we “do not fully understand” the potential trade-offs, he says
US corporates ‘substantially’ more leveraged than thought – Dallas Fed researchers
Using a broader measure than debt-to-GDP, levels are almost double, they say
Two top officials leave the New York Fed
Simon Potter and Richard Dzina step down after combined 49 years at the bank
Trump administration proposes new rules to punish currency manipulators
The move would enable the US to pursue more aggressive trade policy measures
Trump administration to delay $20 Tubman banknote
Banknote featuring abolitionist Harriet Tubman pushed beyond Trump’s maximum term
Fed prepared to adjust balance sheet size and composition
Minutes reveal discussions of how the Fed could use its balance sheet in long-run
Senior Fed officials differ on monetary policy
Bullard says last rate rise “may have overdone it”, but Bostic “not super-concerned”
BIS paper models dollar’s debt dominance
“Debt view” of dollar dominance has empirical support, authors say
Powell plays down fears about record levels of corporate debt
Fed chair’s remarks strike similar chord to those of Ben Bernanke in 2007, but Powell says this time is different
BIS paper finds cross-border links between monetary and macro-pru policy
Authors discover “significant interactions” between policies
Book notes: The third pillar, by Raghuram Rajan
Rajan sets out an ambitious – but deliberately non-radical – manifesto for reform at the local level
Senior Fed officials call for overshooting inflation target
Kashkari says Fed acted too early in tightening while Brainard says policy must meet ‘new normal’
Weakened international co-operation could hinder crisis response – Bernanke
Christina Romer ‘loses sleep at night’ about internationals' readiness to fight a future crisis
Weidmann warns trade war likely to hurt US more than Germany
Bundesbank president says policy normalisation should continue
Risk of hitting ZLB in next three years is low – San Francisco Fed paper
ZLB should not be a concern for monetary policy at this stage, researcher says
Quantitative easing: a never-ending story?
The Federal Reserve is cutting the size of its balance sheet, but is unlikely to reduce it to pre-crisis levels due to fears about financial stability. It also appears to have kept its floor system for the same reason
Trump urges Fed to help win the trade war
Fed’s Williams says tariffs are starting to wear on the economy
Changes in uncertainty can affect US long-term rates – ECB paper
Researchers say “uncertainty shocks” may account for about one-half of long-run rate changes
Minneapolis Fed president calls on Fed to ‘re-tool’ labour market analysis
Wages are a better means of estimating labour market slack, Kashkari says