Federal Reserve Chair Kevin Warsh will lead his first policy meeting next week as investors increasingly question whether interest rates could rise again if inflation remains stubbornly high. The Fed is widely expected to leave rates unchanged, but markets will be closely watching Warsh’s first press conference as chair for signals about the central bank’s […]
Markets await Warsh’s first meeting as Fed chair Read More »
Federal Reserve Gov. Michael Barr.Bloomberg News Processing Content Key insight: The Fed’s former top regulator continues to beat the drum about the stability consequences of the current bank deregulatory policies being championed in Washington. Expert quote: “The bank deregulation undertaken so far, and the plans for more to come, is ultimately going to make our
Fed’s Barr: Strong bank regulation curbs nonbank risks Read More »
Federal Reserve Vice Chair for Supervision Michelle Bowman.Bloomberg News Processing Content Key insight: Bank regulators say they are keenly focused on bank lending to private credit. While they do not see it as an immediate threat to financial stability, they say their understanding of how bank funds are being used in the space is lacking.
Lawmakers press bank regulators on private credit risks Read More »
Treasuries headed for their biggest drop in more than two weeks after a gauge of private-sector employment growth was in line with estimates, leaving intact expectations that the Federal Reserve will raise interest rates this year. Processing Content The 10-year note’s yield was nearly five basis points higher on the day at 4.49%, only its
Treasuries eye biggest loss in two weeks after ADP jobs data Read More »
Processing Content Key insight: The Federal Reserve’s bylaws — or lack thereof — mean that the Fed chair’s actual powers are largely undefined and based on precedent, norms and persuasion. Forward look: The possibility of a Democratic appointee after the next presidential election could create the conditions for a power struggle on what has long
Who really controls the Fed board? Read More »
Rates for 30-year conforming mortgages stayed above 6.7% this week, but housing market activity has been resilient as weekly pending sales and purchase loan demand are up slightly compared to this time last year. At HousingWire’s Mortgage Rates Center on Tuesday, 30-year conforming loan rates averaged 6.71%, while rates for 30-year jumbo loans averaged 6.73%
Mortgage rates at 6.71% as purchase demand holds up Read More »
The Federal Reserve should avoid any move to significantly shrink its balance sheet, two prominent economists warned Tuesday — arguing against a strategy that the US central bank’s new chairman has specifically called for. Processing Content “There may be changes that would pass a cost-benefit test that would shrink the Fed’s balance sheet somewhat,” Christina
Fed warned on shrinking balance sheet in lookback at Powell era Read More »
Bloomberg News Processing Content Key insight: As concerns about inflation take center stage for other monetary policymakers, Bowman’s perspective shows that some Fed officials are still willing to consider rate cuts in the near future. Expert quote: “It is appropriate to look through temporarily elevated inflation readings largely due to higher energy prices, provided that
Fed’s Bowman willing to look through war-driven inflation bump Read More »
Today the Fed hawks killed the doves. On the day Kevin Warsh is sworn in as Fed Chairman, he has lost one of the few doves left on the Fed board: Governor Christopher Waller, whom I would have wanted as Fed chairman. Today, Waller gave a speech about how policy risk has changed and to
New Fed Chair Warsh loses dove as Waller turns hawkish Read More »
(Bloomberg) — Bond traders are fully pricing in an interest-rate hike by the Federal Reserve this year, a sign of conviction in the market that Chair Kevin Warsh will need to move quickly to combat inflation. Processing Content Traders boosted their bets for higher rates on Friday after Fed Governor Christopher Waller — among the
Bond traders bet Fed under Warsh will hike rates this year Read More »