United States
Imperfect algorithms impact market pricing – Fed paper
News-parsing algorithms create temporary distortions and may cut liquidity, paper finds
US stimulus could accelerate policy normalisation – IMF research
Higher growth could increase imbalances and fuel calls for more protectionism
Strong US economy reduces risks from normalisation – Barkin
Richmond Fed president points out consumers are increasingly concerned about tariffs
People: China names new vice-governor
China appoints Liu Guoqiang as vice-governor; MAS establishes governance council, Ireland’s central bank gets new director for supervision; and more
US could lose a third of growth to climate change – Richmond Fed article
Authors warn economic damage could be much more widespread than typically assumed
NY Fed’s Potter: technical tweak helped avoid breaching target range
Effective federal funds rate has been rising in the target range, but head of markets says he does not see much evidence of rates becoming more sensitive to reserves balances
FPC better equipped for crisis than FSOC – BoE paper
Paper compares how macro-prudential regulators in UK and US would handle a 2008-style crisis
Fed’s QE contributed to increased risk-taking by lenders – research
Mortgage real estate investment trusts increased leverage following Fed’s asset purchases
Equities pushing US wealth inequality - Minneapolis Fed paper
Wealth inequality boosted by record-high stocks and slower growth in house prices, paper finds
Fed keeps rates unchanged but points to strong economic activity
FOMC says it expects to implement gradual increases in federal funds rate
‘Bernanke targeting’ may outperform Taylor rule – Fed paper
Paper tests Ben Bernanke’s proposal for temporary price level targets
Researcher models business cycle using ‘animal spirits’
San Francisco Fed paper incorporates ‘equity sentiment shock’ into model
IMF warns of global risks from US fiscal expansion
Faster policy tightening by Fed could harm emerging economies, Obstfeld says
People: Maurice Obstfeld to retire from IMF in December
Macau reappoints monetary authority chairman to one-year term
Flattening yield curve opens questions about nine-year US expansion
Officials and market observers disagree about information conveyed by bond yields
Ghana under pressure from Fed hikes – governor Addison
US policy normalisation sends Ghana’s inflation into double figures while the currency falters
Viability of debt issuance could be hit as QE ends – Bank of Canada paper
QE played important role in funding treasury debt issuance, researchers say
CCAR ‘apocalypse’ leads to excess bank capital, says lobbyist
Head of new trade body says Fed should average capital requirements over multiple scenarios
Banks tend to game stress tests, Fed economists say
Models tend to be subject to “strategic adjustments”, paper finds
Implementation of new Sofr rate is “ahead of schedule”, says Fed vice-chair
Implementation of new ‘Sofr’ rate is “ahead of schedule”, says Fed vice-chair
Trump criticises Fed over rate rises and threatens higher tariffs
US president says rate hikes are “taking away our competitive edge”
Branching out: foreign banks seek shelter from Fed rules
Foreign banks stashing repo businesses within their branches, outside Fed’s full gaze
Book notes: American default, by Sebastian Edwards
Edwards’ book is fascinating, well written and enjoyable, and provides an account of one of the US’s forgotten chapters of history
Central bank digital currency a ‘terrible idea’, US Congress told
Move to central bank cryptocurrency would make Fed “overwhelming credit allocator” - researcher