The Fed announced a proposed new rule that would strengthen the ability of the largest domestic and foreign banks operating in the U.S. to be resolved without government support or taxpayer assistance.
The Wall Street Journal reported that the price of U.S. government debt declined for a second consecutive session, as interest rate sent the yield on the benchmark 10-year note to a one-month high.
Reuters reported the Fed kept interest rates unchanged at its most recent meeting, and in reference to its next policy meeting put a December rate hike firmly in play.
According to the most recent Beige Book from the Federal Reserve, the U.S. economy expanded at a modest pace from mid-August to October, although the manufacturing sector generally experienced weaker performance.
Bloomberg noted in a recent report that the Federal Reserve’s 2% inflation target looks a lot closer according to a price gauge favored by some policy makers.
According to an International Business Times report, if the Fed decides to raise interest rates in the near term, the top five banks in the U.S. could see a $10 billion windfall.
Bloomberg reported that tumbling stocks, oil and junk debt raise questions on the timing of a Fed rate hike. Bloomberg said that last weeks’ selloff suggests financial markets may beat the Fed to tightening ahead of the September meeting.
The Wall Street Journal reported that Federal Reserve Bank of Atlanta president Dennis Lockhart said the economy is ready for the first increase in interest rates in more than nine years.
The FOMC said the labor market continued to improve and underutilization of labor has diminished. The Fed said it will be appropriate to raise the Fed funds rate when it has seen further improvement in the labor market and is reasonably confident inflation will move back to its 2% objective over the medium term.
The Federal Reserve said it approved a final rule requiring the largest, most systemically important U.S. banks to pay a capital surcharge that would require them to bear the costs their failure would impose on others.