United States
Quarles defends decision to set countercyclical buffer at zero
But there may still be disagreement within the Fed’s ranks
Fed provides details on changes to stress-testing models
Central bank publishes report on 2019 stress-test models as part of transparency drive
US bank holding companies have become less complex – NY Fed paper
Researcher examines organisational, business and geographical complexity in decade after 2007
Atlanta’s Bostic lays out case for central banking with ‘ample’ reserves
Floor system performing well and has benefits, says Atlanta Fed president; Harker and Rosengren argue for shift in balance sheet composition
Fintech experts recruited for New York Fed advisory group
New group will provide gateway for Fed to interact with tech industry leaders
Fed has limited tools to combat climate change impact – San Fran Fed paper
But central banks can do more to research appropriate policy responses to climate change
Trump nominates loyalist Stephen Moore for Fed board
“Donald Trump wanted to drain the swamp. The Fed is the swamp,” Moore says
Book notes: Floored!, by George Selgin
Michael Reddell remains unconvinced the Fed’s introduction of the IOR prolonged the recession, but credits Selgin’s argument the IOR policy made the central bank a more powerful credit lender
Podcast: Greg Kaplan on heterogeneous-agent models
Monetary and fiscal policy are much more closely connected than many central banks would like
Boston Fed research encourages tokenisation for ecommerce
Payment method could reduce fraud, paper says, given account information is removed from the process
FOMC cuts rate projections as Powell warns of slowing growth
Federal Reserve’s rate-setting body projects slower inflation, higher unemployment
People: Malpass emerges as sole candidate for World Bank president
Bank of England extends Martin Taylor’s time on financial policy committee
Mortgage innovations fuelled pre-crisis housing boom – paper
Researchers look at 60 million US mortgages to examine non-traditional mortgage products
Fed set to end quantitative tightening in September
FOMC will also slow the pace of its balance sheet reduction programme from May
US crypto-asset regulation needs strengthening – Massad
Former CFTC chair Timothy Massad recommends a path for regulatory reforms
NGDP target can create ‘divine coincidence’ – Bullard and Singh
Nominal GDP targeting can “repair” distortions from credit market frictions, authors find
US agencies move to protect swaps after week of Brexit chaos
Legacy swaps can be transferred without facing onerous requirements, Fed says; week of parliamentary wrangling produces little progress on a final agreement
Fed official suggests reforms to tackle ‘credit deserts’
Brainard advocates greater geographical flexibility in banks’ obligations; FDIC chair appears to agree
PBoC independence would help China’s exchange rate goals – IMF paper
Researcher recommends four China-specific policies to support greater exchange rate flexibility
NY Fed activates motion to dismiss TNB’s lawsuit
“The relief TNB seeks is wholly incompatible with the public interest” – New York Fed
Researchers estimate two alternatives to DSGE model at ZLB
Dallas Fed paper finds piecewise linear version of the model is an “excellent substitute”
Fed to limit use of qualitative stress tests this year
The move enables some large banks to avoid capital planning capabilities examination
Fed IOER amendment aimed at ‘thwarting’ The Narrow Bank
The move appears to specifically target The Narrow Bank’s business model, the firm says
Stress tests vulnerable to ‘model risk’ – Bundesbank paper
Small changes in models can lead to big differences in results, researchers find