Kyle Campbell covers the Federal Reserve and housing policy for American Banker. Previously, he wrote about institutional investment in real estate for PERE. He has also held staff positions at Real Estate Weekly, the New York Daily News and the Southampton Press.
Fed Chairman Jerome Powell brushed off concerns that rapidly tightening monetary policy could disrupt the financial system. Some economists and policy experts beg to differ, raising concerns about loan defaults or even the collapse of a key institution or counterparty.
As the Federal Reserve implemented its second 0.75% rate hike in two months, the chair said the system is able to withstand any financial stability risks that rising rates might create.
More central bank communication leads to more trust and more accurate inflation expectations among the public, a study from the National Bureau of Economic Research concludes. But while other central banks have found creative ways to get their message across, the Federal Reserve has not.
While skeptics still outnumber true believers, recent speeches and reports from policymakers show a greater willingness to entertain the idea of a central bank digital currency.
Officials from the Fed, FDIC and OCC said proposals allowing banks to get Community Reinvestment Act credit for lending and other activities conducted outside their immediate assessment areas could create “powerful incentives” to invest in Native communities.
The Federal Reserve Board will enter next week’s Federal Open Market Committee meeting with a full complement of governors for the first time since 2013.
In a letter calling for the Federal Reserve Board to establish penalties for officials who violate new ethics policies, Senate Banking Committee Chairman Sherrod Brown and other Democrats expanded their push for enhanced Fed accountability.
The former Treasury official and University of Michigan administrator’s confirmation gives the Federal Reserve Board a full complement of seven governors for the first time in nearly a decade.
The Federal Reserve has aggressively ratcheted up interest rates to tame inflation. But that swift turnaround after more than a decade of accommodative monetary policy could create new risks to the financial system.
In a speech at the Bank of England, the vice chair of the Federal Reserve Board gave her strongest endorsement to date for the benefits of a central bank digital currency.