United States
NY Fed activates motion to dismiss TNB’s lawsuit
“The relief TNB seeks is wholly incompatible with the public interest” – New York Fed
Researchers estimate two alternatives to DSGE model at ZLB
Dallas Fed paper finds piecewise linear version of the model is an “excellent substitute”
Fed to limit use of qualitative stress tests this year
The move enables some large banks to avoid capital planning capabilities examination
Fed IOER amendment aimed at ‘thwarting’ The Narrow Bank
The move appears to specifically target The Narrow Bank’s business model, the firm says
Stress tests vulnerable to ‘model risk’ – Bundesbank paper
Small changes in models can lead to big differences in results, researchers find
Brainard hints at Fed’s monetary policy plans
Governor’s speech signals plans on policy rates and Treasury bills purchasing after QT end
Two FOMC members signal Fed may hold rates steady
New York and Boston Fed presidents expect US growth to slow to 2% this year
Interview: Sheila Bair on US regulatory reform and rollback since 2008
Crisis-era FDIC chair “saddened” by former Fed chairs’ focus on bailout powers
Markets still in thrall to central banks – BIS
But some apparent anomalies may be signs of healthier market function, says Claudio Borio
Trump criticises Powell over strong dollar
President complains about Fed’s rate hikes and quantitative tightening in driving up the dollar
Timing of US intraday payments may be useful signal – New York Fed paper
Lenders made intrabank payments earlier once Fed expanded balance sheet, researchers say
Book notes: Where economics went wrong, by David Colander and Craig Freedman
Chicago economics’ gladiatorial debating style has cost the discipline dearly, the authors argue
Bernanke argues for ‘time-limited price targeting’ policy framework
Committing to make up inflation shortfalls in past year would avoid overshooting, paper finds
Bundesbank paper analyses G10 currencies
Industrialised countries’ currencies differ in their influence on each other, researchers find
Powell hints at long-term goals for Fed balance sheet
Proposed reserves buffer is more than enough, Charles Goodhart says
Trump’s tariffs may have caused inflation – researchers
Estimates indicate tariffs may have already contributed 0.1 percentage points to CPI, authors find
Polarised labour market has left low-skilled workers vulnerable – research
Technology and globalisation have hit wages of less skilled urban workers, says David Autor
Foreign banks expect Fed proposal imminently
New framework for tiering foreign bank requirements could come as early as this week
Monetary policy frameworks need modifying, former Fed governor says
Lower r* requires two key modifications to flexible inflation-targeting regimes, Frederic Mishkin says
Trump does not grasp macroeconomic policy – Yellen
Former Fed chair doubts president could recite Fed’s dual mandate goals
US’s first Libor-replacement term rate coming in 2020
Staff at the New York Fed are working on a series of backward-looking averages
Fed officials reveal further details of balance sheet plans
Fed discusses letting assets fall off its balance sheet at the same pace as economic expansion
NY Fed paper scrutinises post-crisis CDS market
Little research has been done on the market at a “granular level”, authors say
US bank interconnectedness is falling – San Fran Fed paper
New method focuses on idiosyncratic factors to identify possible links, researchers say