Key Insight: Fed Gov. Christopher Waller highlighted his skepticism on whether the labor market is showing signs of recovery, or whether the January jobs report was a one-off. Expert Quote: “If the good labor market news of January is revised away or evaporates in February, it would support my position at the FOMC’s last meeting, […]
Waller questions January jobs surge, backs possible March cut Read More »
Eight trade groups representing lenders are urging federal regulators to revise bank capital rules by adopting a more tailored risk weight for mortgages held on balance sheets and by significantly cutting the capital charge applied to mortgage servicing rights (MSRs). In a letter sent Friday to the Federal Reserve, the Federal Deposit Insurance Corp. and the
Trade groups push for lower MSR capital charges, tailored mortgage risk weights Read More »
Regulatory changes to how banks treat mortgage assets — anticipated this week by Federal Reserve Vice Chair Michelle Bowman — may have an impact on the mortgage market over time, analysts said. “The near-term impact on the mortgage market is likely to be somewhat limited,” Keefe, Bruyette & Woods (KBW) analysts wrote in a report
New Fed proposals could reshape mortgage capital requirements Read More »
Key Insight: Federal Reserve Vice Chair for Supervision Michelle Bowman is racing ahead to publish Basel III for commentary before the end of the first quarter. She’s previously highlighted that changes will be introduced to the framework to encourage bank participation in mortgages. Expert Quote: “I’ve said for a number of months now that we
Fed’s Bowman says Basel proposal still on track for end of Q1 Read More »
Federal Reserve Chair nominee Kevin Warsh has several paths toward reducing the central bank’s $6.6 trillion balance sheet but the process will be costly and lengthy, Wall Street strategists say. Processing Content Warsh has called for dramatically paring the Fed’s massive financial footprint, rekindling the debate around the size of its portfolio which swelled
Wall Street is sizing up Warsh’s options to shrink Fed portfolio Read More »
Michelle Bowman, the Federal Reserve‘s vice chair for supervision, used a major industry forum to argue that Basel capital rules have helped to drive mortgage lending and servicing away from banks — and that it’s time to reconsider that approach. Addressing the American Bankers Association (ABA)’s 2026 Conference for Community Bankers on Monday, Bowman described
Basel capital rules may be revised to boost bank mortgage lending Read More »
Federal Reserve Bank of Kansas City President Jeff Schmid said the US central bank should hold rates at a “somewhat restrictive” level, as he expressed continued concerns over inflation that remains too high. Processing Content “In my view, further rate cuts risk allowing high inflation to persist even longer,” Schmid said Wednesday in prepared remarks
Fed’s Schmid says restrictive rates needed to cool inflation Read More »
Key insight: Treasury Secretary Scott Bessent said that the smallest banks should be deregulated, but didn’t endorse any specific policies to do so. Forward look: Chairman French Hill’s, R-Ark., community bank policy package has been overtaken by crypto bills and other priorities on the House floor and the Senate. Expert quote: “Stop being his flunky.”
Bessent offers deregulatory vision, but few specifics Read More »
Key Insight: Former Fed Gov. Kevin Warsh’s selection as the next Federal Reserve chair would put a familiar face atop the central bank, but the hawkish monetary policy stances he has advocated for in the past — contrasted with the accommodative policy the president prefers and that he now supports — muddy the outlook for
What bankers need to know about Fed chair-designate Warsh Read More »
Key Insight: President Trump’s selection of former Fed Gov. Kevin Warsh to a vacating seat on the central bank board will likely garner broad support from Senate Republicans, but promised opposition from Sen. Thom Tillis, R-N.C., could slow the confirmation process. Expert Quote: “I have known Kevin for a long period of time, and
Trump taps ex-investment banker Warsh to be next Fed chair Read More »