While rising rates buoy revenue for the country's largest banks, in the short term they also force them to write down the value of assets they hold on their balance sheet, exacerbating a capital squeeze that's prompted most of them to halt buybacks.

North Carolina Republican Patrick McHenry — who's in line to lead the House Financial Services Committee after the GOP won control of the chamber in the midterm elections — has called for the Fed to stay focused on controlling inflation. Democrats, who retained the Senate, have begun to voice concerns that higher borrowing costs will hurt jobs and potentially cause a recession.

Questions about whether reserve banks are federal agencies and what role the Board of Governors plays in master account decisions should be answered in court, a federal judge ruled.

Inconsistent rules for calculating bank capital threaten to cut off small banks from a key source of liquidity.

The Federal Reserve appeared closer to moderating aggressive interest rate increases after welcome news on inflation, with three officials backing a downshift even as they stressed that policy needs to stay tight.

U.S. financial regulators proposed several steps to improve the functioning of the Treasuries market after it broke down early in the pandemic.

"We're at the very beginning of that mission" to tighten policy enough to slow down the economy and push down inflation, says Bill Dudley, a former New York Fed president.

The Federal Reserve's semiannual financial stability report said the threat of continued high prices and the Fed's response to them are top threats for banks and other market participants.

Facing calls for more transparency around its account-granting processes, the central bank has proposed making a public database of institutions with access to its services.

The central bank terminated a cease-and-desist order issued against the Agricultural Bank of China and its New York branch in 2016 for breaking anti-money-laundering rules.