United States
Leading governors analyse evolving inflation-employment relationship
Powell, Draghi, Lowe and Kuroda assess causes keeping wage growth low across the world
‘Living wills’ have reduced implicit subsidy – Fed paper
Higher cost of capital implies resolution measures have reduced ‘too big to fail’ subsidy, authors say
Fed paper questions value of debt as crisis indicator
Asset prices and current account balance more important, author finds
Economy allows Fed to continue policy normalisation – Atlanta’s Bostic
Business contacts report concerns about trade policy and tariffs
IMF forecasts lower US growth than Fed, Congress and White House
Stimulus expected to yield higher growth in the short term, but the benefits are likely to fade away from 2020
People: Bank of Canada deputy resigns and returns to San Fran Fed
Nigerian president nominates new deputy governor
Fed acts to limit largest banks’ mutual exposures
Largest banks in the US face limits on their exposures, but smaller banks are exempt for now
Trump’s fiscal policy threatens emerging markets – Lagarde
Looser fiscal policy could increase market volatility and worsen global imbalances- IMF chief
Woodford shows finite horizons matter when modelling
Removing rational expectations can change key economic results, says Michael Woodford
Fed hikes another 25 basis points
Hike comes as US inflation runs at target, and emerging markets complain of funding squeeze; Powell reveals change to communications approach
People: US Senate committee approves two Fed governors
Philippines appoints monetary board member; Cleveland Fed appoints director at Pittsburgh branch
Cash usage unlikely to disappear – Atlanta Fed
Universal access, in-person shopping and preference among low-income groups support cash
Hong Kong filmmakers found guilty of possession of fake banknotes
The banknotes were props in an award-winning film; HK filmmakers association called the conviction a “big joke”
Book notes: Edge of chaos, by Dambisa Moyo
John Chown applauds Moyo’s analysis of how the current democratic framework is failing
Creating a diverse workforce isn’t easy – San Fran Fed’s Daly
Improving diversity in the research department has taken concerted effort, says Mary Daly
Is the US dismantling Dodd-Frank?
Richard Heckinger asks whether recent amendments to the Dodd-Frank Act amount to technical tweaks or full-scale rollback
Dudley says more effort needed in modelling financial factors
“We were nowhere. Now we’re probably at the first or second grade,” says outgoing New York Fed chief
Chilean deputy points to US inflation as biggest risk
US growth is broadly positive, but sustained wage growth could drive up rates causing sharp portfolio outflows from emerging markets; Chile relatively well positioned
Federico Sturzenegger on Argentina’s efforts to create a credible central bank
The Central Bank of Argentina governor, in his last interview before leaving office, speaks about panic in emerging markets, the IMF bailout, and bringing to an end high inflation and monetary financing
Brainard says yield curve inversion may not presage recession
Flatter yield curve “may temper somewhat” fears of a coming recession, says governor
Trump appears to pre-signal strong jobs data
US jobs report shows large increase in jobs and further drop in unemployment
Fed and other US regulators call for major changes to Volcker rule
Complex legislation has created compliance uncertainty, Federal Reserve argues
Bullard cautions on pace of US policy normalisation
St Louis Fed president concerned market expectations will threaten credibility of inflation target
FOMC members rarely change their preferences – paper
Researchers find policymakers tend to form their preferences early on in life