United States
Bernanke offers ideas for Fed’s policy framework review
Unconventional policies are “preferable” to raising inflation target and can still be enhanced, Bernanke argues
Fed avoids year-end cash crunch
Repo market shows barely a ripple over New Year’s Eve after Fed injects a quarter of a trillion dollars
Macroeconomics is not broken
The discipline has moved beyond the neoclassical synthesis. Critics should too
Network effects magnify impact of US monetary policy – BdF paper
Researchers find that impact of US monetary policy is increased by complex cross-border interactions
‘Sharp tightening’ can create multiple equilibria – New York Fed paper
“Multimodality” means economy could be stuck in “bad equilibrium” for a long time, authors warn
People: Logan to head NY Fed market ops; Norges Bank deputy departs
Lorie Logan and others get senior roles at the New York Fed; deputy steps down early from Norges Bank; payments firm Sia names new chairman
New York Fed expands year-end repo operations
More cash to be made available both overnight and in term repos
FOMC calls halt to cutting cycle
Unanimous decision keeps rates on hold; Powell signals no move likely for some time
Tribute to a great man
Peter Bakstansky highlights Paul Volcker’s legacy of probity and integrity
Tensions emerge in Fed’s push for instant payments
The US Faster Payments Council is in a better position than the Fed to tackle key issues, some say. Others welcome the Fed’s muscle in promoting competition
Atlanta Fed develops new data app
App provides access to Fed bank’s most popular data points and tools
Paul Volcker, 1927–2019
The Fed chair made his name battling inflation, and left his mark on independence and post-crisis financial regulations
Marvin Goodfriend, 1950–2019
The leading economist and former Fed official died on December 5
Banks’ repo muscles may have ‘atrophied’ – Borio
BIS report highlights impact on market functioning from Fed and ECB easing action
Signs of US banks’ year-end funding concerns continue
New York Fed’s second 42-day term operation oversubscribed by $18 billion
Fed’s supervision may have added to repo turmoil, Quarles says
Republican lawmaker concerned for financial stability if “bad regulation” is driving monetary policy
NY Fed’s Stiroh: ‘More work to be done’ on bank culture
Kevin Stiroh discusses progress in reforming banking culture and how technology is changing the risk management equation for both firms and supervisors
Book notes: The Japanese central banking system compared with its European and American counterparts, by Yoshiharu Oritani
The book has “no equal” in reviewing new microeconomic theory for central banking
Negative rates not to blame for low eurozone bank profitability – Fed paper
Rates and macroeconomic environment only make up third of shortfall, researchers find
Banks could be stuck with riskiest corporate loans during downturn – Fed paper
Researchers say loan syndication may leave banks unable to offload leveraged debt in downturn
Kansas Fed paper looks at weak US fraud controls
US has much higher ‘in-person fraud’ rates than three other developed economies, researcher says
Fed points to non-financial risks at large US banks
US-based G-Sibs show weaknesses in AML, internal audit and IT risk, Fed says
People: Governors reappointed; Fed gets new CIO
Reappointments in Egypt and Palestine; Fed picks chief information officer; new financial stability head in Iceland
US banks show signs of year-end funding concerns
Banks demanded nearly twice the amount of cash on offer in NY Fed’s new term repo