Economic news

The creation of a U.S. dollar central bank digital currency is an existential threat to the banking industry and needs to be treated as such.

An American Bankers Association panel of experts predicted much slower economic growth, but agreed that the U.S. economy will avoid a recession over the next couple of years.

The Federal Reserve is about to start shrinking its $8.9 trillion balance sheet, deploying a second tool along side higher interest rates to curb inflation, though officials don’t know just how effective it will be.

President Biden used a rare meeting with Federal Reserve Chair Jerome Powell to declare that he’s respecting the central bank’s independence — while simultaneously shifting responsibility for taming decades-high inflation ahead of the November midterms.

George's departure will come around the same time that Chicago Fed chief Charles Evans steps down. Both will have turned 65.

After lying low for a couple of years, wealthy consumers are poised to unleash nearly a quarter-trillion dollars in a card-spending binge that only a COVID-19 resurgence could derail, according to Visa's chief economist, Wayne Best.

Wall Street lenders are calling on the U.S. government to hold off on launching a digital dollar, arguing that a virtual currency backed by the Federal Reserve risks draining hundreds of billions of dollars out of the banking system.

The U.S. Department of Agriculture expects farm profits to drop by 8% this year due to multiple factors, creating credit quality questions for ag banks.

The Federal Reserve will begin shedding as much as $47.5 billion of assets monthly starting June 1 to tamp down on inflation. But doing so could undermine the banking industry’s preferred source of liquidity.

Banks report solid commercial and industrial loan demand, but are increasingly concerned about how soaring inflation and the specter of recession will affect their clients.

Treasury Secretary Janet Yellen pointed to a recent implosion of the experimental TerraUSD stablecoin — which uses an algorithm rather than fiat currency pegging to maintain its value — as the latest evidence for urgently needed regulation in the sector.

In “The Journey of Humanity,” the economics professor Oded Galor explores the complex question of why some countries have flourished while others continue to struggle.

The Federal Open Market Committee started its hiking cycle in March and everyone expects another increase when it meets May 3-4. Speculation is the FOMC will lift rates a half-point at that meeting. Steve Skancke, chief economic adviser at Keel Point and former White House and Treasury Department staff member, will discuss the FOMC decision and the panel’s next steps in fighting inflation.

The Federal Reserve’s Federal Open Market Committee voted Wednesday to raise interest rates to between 0.75% and 1%, the largest single rate hike since 2000.

Senate Banking Committee Chairman Sherrod Brown said Wednesday that the Senate would wait to confirm President Biden’s Federal Reserve picks until the return of Democrats recovering from the coronavirus.

In a recent survey, just over half of community bankers expressed concern that the central bank will harm the U.S. economy by raising rates too fast in its quest to contain inflation.

Lael Brainard was confirmed as vice chair of the Federal Reserve Board of Governors Tuesday in a 52-43 Senate vote, the first of four central bank nominees set for consideration by the chamber.

Joe Manchin, a key Democrat in the U.S. Senate, said he’s spoken to Michael Barr, President Joe Biden’s choice to be the U.S. Federal Reserve chief banking supervisor, and so far doesn’t see a problem with his nomination.

Although small banks and credit unions are enjoying healthier loan portfolios, they are also bracing for potential setbacks due to higher interest rates and inflation.

Bank-issued prepaid benefits cards were supposed to help state governments deliver these funds more efficiently. But the pandemic scrambled the economics of these programs.