Federal Reserve Raises Benchmark Rate

In light of strong job growth and increased economic activity, the Federal Open Market Committee voted to raise the target range for federal funds rate a quarter of a percentage point with three more increases planned for 2017.

Regulators Reject Wells Fargo ‘Living Will’ Plan, Impose Restrictions

The FDIC and Federal Reserve rejected Wells Fargo’s latest “living will” plan and, as a result, have placed restrictions on the bank’s ability to grow its international and non-bank activities.

Fed: Domestic C&I Loan Demand to Remain Steady

The October 2016 Senior Loan Officer Opinion Survey on Bank Lending Practices addressed demand for bank loans to businesses over the past three months and a steady outlook for the next six months.

Fed Moves to Provide Stress Test Relief for Regional Banks

The Fed is proposing to modify its capital plan and stress testing rules for the 2017 cycle that would remove banks with less than $250 billion in assets from being included in the annual CCAR qualitative review.

Fed Holds Rates, Notes ‘Soft’ Business Fixed Investment

The FOMC decided at its most recent meeting to maintain the target range for the fed funds rate at 1/4 to 1/2%. The committee noted household spending has been growing strongly, but business fixed investment remained soft.

Fed Minutes: Momentum Building for Rate Hike

According to the minutes from the FOMC’s recent meeting, some attendees judged that another increase in the fed funds rate was or would soon be warranted, with a couple advocating an increase at this meeting.

Labor Productivity Stalls, Could Impact Fed’s Interest Rate Decision

Nomfarm business sector labor productivity decreased at a 0.5% rate in Q2/16, which, according to the Wall Street Journal, could keep the Federal Reserve from raising interest rates.

Largest Banks Pass Stress Test, Add $700B in Capital Since 2009

The results of the Federal Reserve’s most recent bank stress tests showed the nation’s largest banks continue to build capital levels and improve credit quality, strengthening their ability to lend during a severe recession.

Yellen: Fed Funds Rate Likely to Remain Low ‘For Some Time’

In a speech before the Senate Banking Committee, Federal Reserve head Janet Yellen said the committee expects the fed funds rate to remain below the levels expected for some time because of ‘headwinds.’

NY Fed Chief: Central Bank’s Tiptoe Approach Is Key to Balance

The New York Times reported that Federal Reserve Bank of New York President William C. Dudley said the Fed is maintaining balance with its slow movements.