News Regulators 

Wells Fargo CEO’s pay raise draws rare Fed response

“Wells Fargo gave Chief Executive Tim Sloan a 5 percent pay raise for 2018, prompting the Federal Reserve to release a statement saying that it does not sign off on executive pay” reports nypost.com. We expect boards of directors to hold management accountable,” said a Fed spokesperson in an emailed statement when asked about the bank’s new executive compensation numbers. Source: nypost.com

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Muted inflation is taking Fed out of the picture for bond buyers

“Expectations for shifts in U.S. central bank policy usually dictate where Treasury yields are headed” writes Sunny Oh for marketwatch.com. See: Inflation perks up in February to four-month high, CPI shows Without having to worry about inflation and an aggressive Fed, investors have steadily moved into bonds.Another round of lackluster inflation data on Tuesday helped affirm suspicions that the Federal Reserve is now a peripheral player in the bond market.Slow inflation growth can limit the corrosive influence of price pressures on bond’s fixed-interest payments and diminish the possibility of rate…

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News Regulators 

Fed bans two former Goldman Sachs executives from banking industry for their roles in Malaysian scandal

“The Federal Reserve on Tuesday barred two former Goldman Sachs Group executives from the banking industry for their roles in the scandal at a Malaysian investment fund” writes Senior Economics Reporter for marketwatch.com. Tim Leissner, a former Goldman partner in Asia, was one of the two executives barred by the Fed from the banking industry.Some of the money went to bribes. Source: marketwatch.com

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News Regulators Stocks 

US retail sales preview: Did Powell give away a strong report?

“In his interview aired on Friday (and recorded late last week), Fed Chairman Powell said there is some evidence of a rebound in January retail sales” reports forexlive.com. US January retail sales data is due out Monday at 8:30 am ET (1230 GMT) and the number is sure to have an outside impact on the US dollar, especially after Friday’s poor non-farm payrolls headline.Even if he didn’t the Fed gets plenty of data and he may have other reasons to believe a strong number is coming.Maybe it was the shutdown…

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Markets News Regulators 

The global supply of money has stopped growing for the first time in years, and a prominent economist is convinced it’s created an 80% chance of recession

“To the apprehension of several market experts, a key gauge of the global supply of money has stopped growing” writes Akin Oyedele for businessinsider.com. This gauge matters to market participants because it reflects just how tight central bank policy is.The Fed and other global central banks were still very much enacting accommodative policies and juicing financial assets with liquidity.It’s the global monetary base, defined as the sum of currency in circulation, as well as deposits that banks and other depository institutions hold with the Federal Reserve.Multiple Fed officials have also…

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Markets News Regulators 

Fed’s Powell says no immediate policy responses needed to economy

“He said he asked a small panel of fellow Fed policymakers to figure out a better way to communicate their role” writes Midwest Communications Inc for 95kqds.com. Powell’s remarks were the last from any Fed policymakers until the conclusion of the Fed’s next policy-setting meeting, to be held March 19-20.While there were “cross-currents” pointing to economic risks, none were flashing warning signals serious enough for the Fed to change its interest rate policy stance, he said.On Friday, however, Powell warned against reading too much into those forecasts, noting that in…

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News Regulators 

Fed governor warns that the economy is at risk of slowing

“Federal Reserve Governor Lael Brainard warned on Thursday that the economy could be slowing despite strong job growth” reports washingtonexaminer.com. That “would amount to a significant headwind,” for the U.S. economy, Brainard said.In remarks prepared for delivery at Princeton University, Brainard cited, as risks to the economy, surveys of consumers and businesses showing declined optimism in the U.S. economy, a weakening global economy, and the potential that President Trump’s trade wars or a government shutdown could weigh down future economic growth. Source: washingtonexaminer.com

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Consumer credit picks up a bit in January

“Total consumer credit increased $17 billion in January to a seasonally adjusted $4.03 trillion, according to the Federal Reserve” writes Senior Economics Reporter for marketwatch.com. Big picture: Credit growth has been steady, reflecting income growth and consumer optimism.Consumer credit remains “OK for now,” he said in an interview.What happened: Revolving credit, like credit cards, rebounded in January, rising by 2.9% after a 1.1% gain in December.And the Fed’s latest survey of senior loan officers concluded that demand for consumer loans was falling while banks were tightening standards on loans. Source: marketwatch.com

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Fed survey finds adverse impact from government shutdown

“The partial government shutdown, the longest in history, had an impact around the country, the beige book found” reports thebusinessjournal.com. In its latest report on economic conditions around the country, the Fed said that 10 of its 12 regions reported “slight-to-moderate growth” over the past two months.Some manufacturers expressed worries about weakening global demand for their products and adverse effects from President Donald Trump’s trade policies.At its January meeting, the Fed signaled that it was hitting pause on its rate hikes in light of a slowdown in global growth and…

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News Regulators 

Federal Reserve scraps ‘qualitative’ test for U.S. banks in 2019 stress tests

“Most banks that have failed the tests in the past stumbled on the qualitative objection” writes Midwest Communications Inc for 95kqds.com. The “qualitative” portion of the 2019 test, however, will still apply to the U.S. subsidiaries of five foreign banks subject to the annual exam.WASHINGTON (Reuters) – The U.S. Federal Reserve said on Wednesday it would no longer flunk banks based on operational or risk management lapses during its annual health check of the country’s domestic banks.Lenders which are still relatively new to the tests and may have “less established”…

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