Beige Book: Economy Expands; Business Lending Flat
According to the Fed’s Beige Book, economic activity continued to expand during early July through late August. Several districts characterized business lending as largely flat.
According to the Fed’s Beige Book, economic activity continued to expand during early July through late August. Several districts characterized business lending as largely flat.
The Federal Reserve said large bank holding companies have more work to do to enhance their practices for assessing the capital they need to withstand stressful economic and financial conditions.
Bloomberg reported that much of the debate over who will be the next U.S. Federal Reserve chairman has focused on whether gender politics or the future of Fed monetary policy will be more determinative.
The Federal Reserve said it will collect about $440 million from 70 financial institutions as annual assessment fees for the Fed’s supervision and regulation for the 2012 assessment period.
In a news release, Fed officials said economic activity expanded as a modest pace and business fixed investment advanced. The Fed also said it will keep the central bank’s $85 billion-per-month bond-buying program in place.
The Wall Street Journal reported that sharp increases in long-term interest rates, triggered by Fed statements last week, threaten sales of homes, cars and other big-ticket items that have helped drive the recovery.
The Wall Street Journal reported that several large banks submitted their own collective crisis plan to the Federal Reserve in an effort to preempt more stringent regulations.
In a news release, the Federal Reserve said it will maintain the current federal fund rate and continue bond purchases.
According to the Federal Reserve’s recent Beige Book, overall economic activity increased at a modest to moderate pace since the previous report, with manufacturing expanding in most districts.
CFO reported that more than 350 U.S. firms now have a thinner earnings cushion to cover the debt on their balance sheets.