Fed Raises Interest Rate; More Increases to Come
Bloomberg reported that the Federal Reserve increased the benchmark interest rate by a quarter percentage point; a move designed to slow inflation.
Bloomberg reported that the Federal Reserve increased the benchmark interest rate by a quarter percentage point; a move designed to slow inflation.
The Federal Reserve Board asked for comment on a proposed rule to simplify and tailor compliance requirements relating to the “Volcker rule.”
Reuters reported both the U.S. Federal Reserve and Bank of England urged global financial markets to increase their efforts to replace LIBOR with alternative interest rate benchmarks.
ICBA commended the Federal Reserve for “equitable treatment of Wells Fargo following the megabank’s repeated consumer abuses.”
Responding to widespread consumer abuses and compliance breakdowns by Wells Fargo, the Federal Reserve said it would restrict the bank’s growth until it sufficiently improves its governance and controls.
The Federal Reserve voted unanimously to keep interest rates unchanged at 1.25 to 1.5%. The FMOC noted that the labor market has continued to strengthen and economic activity has been rising at a solid rate.
The Wall Street Journal reported Jerome Powell was named the 16th chairman of the Federal Reserve as he was confirmed by the Senate.
President Donald Trump nominated macroeconomist Marvin Goodfriend, monetary policy expert and central banking historian, to serve as a member of the Board of Governors of the Federal Reserve System.
The Federal Reserve issued a statement saying, “The federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run.”
According to the FDIC’s recently released Shared National Credit Program Review, regulators said risk in the portfolio of large syndicated bank loans declined slightly but remains elevated.