United States
NY Fed’s Potter: technical tweak helped avoid breaching target range
Effective federal funds rate has been rising in the target range, but head of markets says he does not see much evidence of rates becoming more sensitive to reserves balances
FPC better equipped for crisis than FSOC – BoE paper
Paper compares how macro-prudential regulators in UK and US would handle a 2008-style crisis
Fed’s QE contributed to increased risk-taking by lenders – research
Mortgage real estate investment trusts increased leverage following Fed’s asset purchases
Equities pushing US wealth inequality - Minneapolis Fed paper
Wealth inequality boosted by record-high stocks and slower growth in house prices, paper finds
Fed keeps rates unchanged but points to strong economic activity
FOMC says it expects to implement gradual increases in federal funds rate
‘Bernanke targeting’ may outperform Taylor rule – Fed paper
Paper tests Ben Bernanke’s proposal for temporary price level targets
Researcher models business cycle using ‘animal spirits’
San Francisco Fed paper incorporates ‘equity sentiment shock’ into model
IMF warns of global risks from US fiscal expansion
Faster policy tightening by Fed could harm emerging economies, Obstfeld says
People: Maurice Obstfeld to retire from IMF in December
Macau reappoints monetary authority chairman to one-year term
Flattening yield curve opens questions about nine-year US expansion
Officials and market observers disagree about information conveyed by bond yields
Ghana under pressure from Fed hikes – governor Addison
US policy normalisation sends Ghana’s inflation into double figures while the currency falters
Viability of debt issuance could be hit as QE ends – Bank of Canada paper
QE played important role in funding treasury debt issuance, researchers say
CCAR ‘apocalypse’ leads to excess bank capital, says lobbyist
Head of new trade body says Fed should average capital requirements over multiple scenarios
Banks tend to game stress tests, Fed economists say
Models tend to be subject to “strategic adjustments”, paper finds
Implementation of new Sofr rate is “ahead of schedule”, says Fed vice-chair
Implementation of new ‘Sofr’ rate is “ahead of schedule”, says Fed vice-chair
Trump criticises Fed over rate rises and threatens higher tariffs
US president says rate hikes are “taking away our competitive edge”
Branching out: foreign banks seek shelter from Fed rules
Foreign banks stashing repo businesses within their branches, outside Fed’s full gaze
Book notes: American default, by Sebastian Edwards
Edwards’ book is fascinating, well written and enjoyable, and provides an account of one of the US’s forgotten chapters of history
Central bank digital currency a ‘terrible idea’, US Congress told
Move to central bank cryptocurrency would make Fed “overwhelming credit allocator” - researcher
US expansion set to continue despite trade disputes – Powell
Protectionism may still negatively affect economy, Fed chair concedes
Paper looks at impact of financial shocks on US labour markets
Negative shocks have far bigger effects than positive ones, researchers find
Forecasting yield curve inversion is hard – Cleveland Fed research
Inversions may be a “harbinger of recession” but seeing them coming is difficult, says economist
Trump tariffs could force Fed’s hand – IMF
US central bank could be forced to raise rates more quickly if tariffs force prices higher
Monetarist perspective affects normalisation forecasts – Chicago Fed paper
Incorporating money demand into projections affects forecasts of remittances and money multiplier