United States
Flattening yield curve increased retail banks’ profits – Chicago Fed
The results reflect a change in banks’ business models after the financial crisis, researchers say
Volcker rule helped curb equity market risk – researchers
Banks had large trading exposures to equity market risk before the rule was introduced, they find
People: Stanley Fischer joins BlackRock in advisory role
Veteran central banker moves back to private sector; Jamaica begins search for new governor; El Salvador governor assumes presidency of regional council
IMF prepares to overhaul its financial surveillance
Fund agrees with IEO report that there is much room for improvement, but budget remains an issue
Globalisation is helping to flatten Phillips curve – Fed paper
Price sensitivity to output changes is significantly weaker in high trade-intensive industries
Fed to finalise balance sheet plans in upcoming meetings – Mester
Discussions over final size and future use of the balance sheet underway at the central bank
US expectations key influence on inflation - San Francisco Fed paper
Fed must maintain inflation expectations around target, researchers say
Fed’s Bowman says regulators must tailor regulations for smaller banks
But stress-test reform to relieve smaller banks is credit negative, Moody’s warns
Trump administration nominates David Malpass as next World Bank head
Nomination comes despite inaccurate pre-crisis predictions and criticism of global institutions
Balance sheet normalisation has put upward pressure on borrowing costs – Kansas Fed
Levels of reserves still influences borrowing costs despite post-crisis monetary policy framework
Quarles says FSB ‘must evolve’
New chair calls for changes in the way the organisation assesses financial sector threats
Negative rates could have sped up US recovery – San Fran Fed paper
Output gap could have been reduced by as much as half compared to actual figures, researcher says
Unconventional policy should be used rapidly – Fed paper
Researchers find 20–50% chance that US will face zero lower bound in next decade
Powell joins Trump for dinner at the White House
Fed puts out statement, as meeting follows regular criticism of the Fed’s interest rate path from the president
Fed’s 2019 stress tests to assume largest unemployment shock to date
Central bank also announces moves to enhance transparency in its stress-testing programme
New York Fed to help Bangladesh Bank chase down stolen funds
Two years on from the heist, the organisations have signed a “technical assistance” agreement
Chilean central bank hikes rates
Rate rise comes despite US Fed holding rates on January 30
Leverage increasing among large shared loans in US, regulators warn
Fed, FDIC and OCC say lenders are relying on borrowers’ “savings and synergies”
Fed takes dovish stance as it clarifies long-run monetary policy
New statement seeks to clarify Fed’s balance sheet normalisation strategy
Euro outpacing dollar as cross-border credit grows
Latest BIS statistics show widening gap between credit growth in the two major currencies
Fed to open dialogue on stress tests
Conference will discuss the “transparency and effectiveness” of the stress tests
People: Mexico appoints two new deputy governors
Federal Reserve appoints new research director and IADB makes Chilean official chief economist
Economics in central banking: Greg Kaplan, Benjamin Moll and Gianluca Violante
Authors’ paper, ‘Monetary policy according to Hank’, boosts the realism of core economic models, delivering important insights into inequality and the transmission of monetary policy
Second round of 2019 Central Banking awards winners revealed
Winners include Warren Coats, St Louis Fed, Bank of Israel, RBA and National Bank of Ukraine