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    WASHINGTON (AP) — The Senate easily approved Michael Barr to be the Federal Reserve’s top banking regulator in a bipartisan vote Wednesday. Barr, a former top Treasury official under President Barack Obama, is the last of President Joe Biden’s three nominees to the Fed’s board of governors to win Senate confirmation. All seven seats on the Fed’s board are now filled, for the first time in roughly a decade, as the central bank tackles the worst inflation in 40 years. The Senate voted 66-28 to approve Barr to serve as vice chair for supervision, the government’s primary financial regulator. As a Treasury official, Barr helped design the 2010 Dodd-Frank financial regulations after the devastating 2008 financial crisis. He most recently was the dean of the University of Michigan’s Gerald R. Ford School of Public Policy. During a Senate hearing, Barr pledged to support the Fed’s efforts to reduce inflation and said he would promote “clear rules” to govern financial innovation. He also said during the hearing that Congress and financial agencies should regulate stablecoins, a form...
    U.S. Federal Reserve Board Chairman Jerome Powell takes questions from reporters after the Federal Reserve raised its target interest rate by three-quarters of a percentage point to stem a disruptive surge in inflation, during a news conference following a two-day meeting of the Federal Open Market Committee (FOMC) in Washington, June 15, 2022.Elizabeth Frantz | Reuters Federal Reserve Chairman Jerome Powell reiterated the central bank's commitment to bringing down inflation, saying Friday that it's essential for the global financial system. "The Federal Reserve's strong commitment to our price stability mandate contributes to the widespread confidence in the dollar as a store of value. To that end, my colleagues and I are acutely focused on returning inflation to our 2 percent objective," Powell said in introductory remarks for a Fed-sponsored conference on the global role of the U.S. currency. Those remarks come two days after the Federal Open Market Committee voted to raise benchmark interest rates by three-quarters of a percentage point to a targeted range of 1.5%-1.75%. Banks use the rate to set borrowing costs for short-term loans they provide...
    VIDEO2:0602:06New York State's financial services superintendent explains new stablecoin guidelinesCrypto World The New York State Department of Financial Services on Wednesday released new rules for licensed cryptocurrency firms that issue stablecoins, calling for reserve requirements and monthly independent audits. The guidance affects current holders of the BitLicense, the business license for virtual currency businesses operating in New York State, or limited purpose trust charter holders that issue stablecoins backed by fiat currency. The agency said it expects stablecoins to be fully backed by a reserve of assets and redeemable by investors. It also laid out requirements for those reserves, including the various assets the reserves should comprise and a specification that they be "segregated from the proprietary assets of the issuing entity." Issuers should also submit to monthly audits by an independent certified public accountant. Regulators have focused on stablecoins in recent months due to the lack of transparency around trading these virtual assets and the reserves backing them, as well as market participants' reliance on them to enable trading in other crypto protocols. The meteoric rise of the Terra...
    New York (CNN Business)Turmoil on Wall Street is a feature, not a bug, of the Federal Reserve's fight against inflation, according to former New York Federal Reserve President Bill Dudley."What's happening right now is exactly what the Federal Reserve wants to happen," Dudley told CNN in an interview, referring to recent volatility in the financial markets.Turbulence on Wall Street has increased as investors worry about a potential recession and brace for a series of interest rate hikes from the Federal Reserve. The S&P 500 lost more than 13% of its value between January and April, marking its worst start to a year since 1939. "They want a weaker stock market. They want higher bond yields," Dudley said. "The stock market I think is finally catching onto that."The Fed came to the rescue in March 2020 by slashing interest rates to zero and promising to purchase trillions of dollars in bonds. Those moves laid the foundation for blockbuster returns in the stock market, gains that helped revive confidence in the US economy after the onset of Covid-19. Read MoreStocks sink ahead...
    President Joe Biden has nominated the Obama-era Treasury staffer Michael Barr to serve as the vice chair for supervision at the Federal Reserve; Barr has defended Dodd-Frank’s Wall Street bailout mechanism. Biden nominated Barr as his replacement pick for Sarah Bloom Raskin, whom he originally tapped for the vice chair position at the nation’s central bank. Senate Banking Committee Chairman Sherrod Brown (D-OH) has backed the nominee, who also has a good relationship with progressive champion Sen. Elizabeth Warren (D-MA). During his time at the Obama Treasury Department, Barr served as a chief negotiator on the 2010 Dodd-Frank financial reform bill. “Now more than ever, we need a full Fed Board — including a Vice Chair of Supervision. The Vice Chair of Supervision plays a critical role in protecting our financial system and must prioritize strong financial regulation, and identify and stay ahead of risks to our economy. … Michael Barr understands the importance of this role at this critical time in our economic recovery,” Brown said in a statement. Brown also called on Republicans to “abandon their old playbook of...
    President Biden on Friday nominated Obama-era Treasury official Michael Barr to serve as the Federal Reserve's top banking regulator after his controversial first pick withdrew her nomination.  If confirmed, Barr would serve as the Fed's vice chairman for supervision, overseeing the nation's largest financial firms including J.P. Morgan Chase, Bank of America and Citigroup.  Barr served in both the Obama and Clinton administrations and currently works as a law professor the University of Michigan. The Fed seat has a 10-year term.  'While I'm doing everything in my power to lower prices for families, the Federal Reserve plays a critical role in fighting inflation and Barr will make a strong Vice Chair for Supervision,' Biden said in a statement.    'Barr has spent his career protecting consumers, and during his time at Treasury, played a critical role in creating both the Consumer Financial Protection Bureau and the position for which I am nominating him,' Biden continued.  Barr will now have to clear the Senate Banking Committee and sit for a hearing before going for a vote before the full Senate. The Senate...
    Share this: Small businesses still have the pandemic and now high inflation to grapple with — and they’re finding it’s tough to get a loan to help with the daily grind. A recently released survey from the Federal Reserve shows how the pandemic has altered the financial landscape for small business. About 85% experienced financial difficulties in 2021, up nearly 20 percentage points from 2019. Back then, more than half of owners who sought a loan were looking to expand; last year, the majority of applicants needed funds just to cover every day operating expenses. Meanwhile, inflation is the highest in decades, with raw materials and finished goods soaring in price and workers demanding higher wages. The Federal Reserve is raising interest rates in response, which means the cost of borrowing money is going up.
    WASHINGTON (AP) — Sarah Bloom Raskin, under fire from Senate Republicans for her views on climate change and financial regulation, has withdrawn her name from consideration for a key post on the Federal Reserve’s Board of Governors. Raskin’s nomination was stuck in the Senate Banking Committee after Republican senators boycotted a vote on it. Sen. Joe Manchin, a Democrat from West Virginia, said Monday that he also opposed her, dooming her chances of winning confirmation in the full Senate. President Joe Biden had nominated Raskin to serve as the Fed’s vice chair for supervision, a top financial regulatory post. Copyright © 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, written or redistributed.
    In late February, allied leaders of Western nations issued a joint statement expressing their intentions to restrict Russian access to the SWIFT telecommunications network. In the statement, Western leaders from the European Commission, France, Germany, Italy, Canada, the United Kingdom, and the United States said, “As Russian forces unleash their assault on Kyiv and other Ukrainian cities we are resolved to continue imposing costs on Russia that will further isolate Russia from the international financial system and our economies.” Targeting the Russian financial sector, oligarchs, and the Russian central bank with these sanctions will economically isolate Russia and make international commerce extremely difficult for the country. Similar to previous spikes in inflation being caused by supply chain shortages and difficulty importing goods, Powell and his colleagues at the Federal Reserve believe that the extra duress put on international trade as a result of these sanctions will cause prices to further to inflate for American consumers. “We are attentive to the risks of potential further upward pressure on inflation expectations and inflation itself from a number of factors....
    by James P. Pinkerton   Who among us hasn’t made $1.5 million for sitting on an advisory board for two years? Not you? Come to think of it, me neither. Such money comes only to the well connected. And “connected” is a good word to use in regard to Sarah Bloom Raskin, nominated last month by President Joe Biden to be Vice Chair for Supervision at the Federal Reserve System. Previously, from 2010 to 2014, she served as a Governor of the Fed, and then, from 2014 to 2017, she worked as Barack Obama’s Deputy Secretary of the Treasury. After that posting, Raskin did a stint as an adviser to the Reserve Trust. That’s a government-sounding entity — sort of sounds like the Federal Reserve, in fact — and yet it’s a completely private for-profit firm. And here’s something interesting: Reserve Trust bills itself as “the first fintech trust company with a Federal Reserve master account.” Hmm. There’s a lot to unpack there. First off, “fintech” is that new category of digital finance, notable for its crypto-opaque nature. Second, the Federal Reserve’s own website tells us that “master...
    Sarah Bloom Raskin, nominated to be vice chairman for supervision and a member of the Federal Reserve Board of Governors, gestures during a Senate Banking, Housing and Urban Affairs Committee confirmation hearing on Capitol Hill in Washington, D.C., U.S., February 3, 2022.Ken Cedeno | Reuters Senate Republicans suggested Thursday that Sarah Bloom Raskin — President Joe Biden's nominee for the top bank supervisory post at the Federal Reserve — used her status as a former government official in 2017 to help a company on whose board she sat get special access to the Fed's payments system. Raskin repeatedly refused to answer questions from Wyoming Republican Cynthia Lummis about whether she called the Kansas City Regional Federal Reserve on behalf of that company, Reserve Trust, after joining its board. Lummis said Raskin, who spoke before the Senate Banking Committee, did make such a call. A Senate Republican aide later told CNBC that Sen. Pat Toomey, a Pennsylvania Republican and the ranking member of the committee, sent a letter to the Kansas City Fed in early February requesting information about Raskin's purported...
    Sarah Bloom Raskin, President BidenJoe BidenBriahna Joy Gray: Biden's Supreme Court promise 'bare minimum' gesture to Black voters House GOP leader says State of the Union attendance could be capped: report Record enrollment numbers send a clear message about health care affordability, access  MORE’s nominee to serve as vice chair of supervision at the Federal Reserve, is expected to get some tough questions at a Thursday confirmation hearing over her work for Reserve Trust, a non-bank financial technology company that received special access to the Fed’s payments system while she was serving as a director.   Reserve Trust, a Colorado chartered trust company, is the only non-bank fintech company to have a Fed master account. It got the account while Raskin was serving as the company’s director.  Access to the Fed’s payments system is a major advantage for financial institutions because it allows them to earn interest from deposits parked at the Fed and eases the ability to transfer large sums of money. Other non-bank financial institutions have to partner with banks insured by the Federal Deposit Insurance Corp....
              by Thomas Catenacci   A large coalition of state financial officers announced their opposition to one of President Joe Biden’s top nominees for the Federal Reserve over her “radical” policy positions. Sarah Bloom Raskin would put U.S. financial and economic stability at risk to achieve her “preferred social outcomes” if confirmed, the top financial officers of 25 states wrote to Biden in a letter Monday. Raskin, the former deputy secretary of the Treasury Department during the Obama administration, has taken particular aim at addressing climate change through aggressive financial policies. “As State Treasurers, Auditors, and financial officers, we write to express our strong disapproval of Sarah Bloom Raskin as your choice for Vice-Chair for Supervision at the Federal Reserve Bank. We urge you to withdraw her nomination,” the letter stated. “We, the undersigned, oppose Ms. Raskin’s radical banking and economic views and are deeply concerned that she would use the supervisory authority as Vice-Chair for Supervision at the Federal Reserve Bank to disrupt the private banking sector, reliable energy supplies, and the U.S. economy,” they added. Biden nominated Raskin for vice chair for...
    Climate activists rally against Federal Reserve Chair Jerome Powell outside of the Federal Reserve Board Building October 29, 2021 in Washington, DC.Drew Angerer | Getty Images In 2007, our global financial system was pushed to the brink of collapse after financial regulators ignored reckless lending. In the aftermath of that financial crisis, regulators vowed to prevent a similar crisis in the future. But now, those same regulators are once again ignoring a devastating risk to our economy, our health, and our safety: the climate crisis. Last month, President Joe Biden and leaders from more than 190 countries gathered in Glasgow for the 26th Conference of Parties to the United Nations Framework Convention on Climate Change, a summit to strengthen climate action commitments under the Paris climate agreement. In Glasgow, Biden reiterated the U.S.'s commitment to cut emissions that cause dangerous short-term warming and end new international financing of unabated fossil fuel energy. U.S. President Joe Biden speaks during the "Accelerating Clean Technology Innovation and Deployment" event at the UN Climate Change Conference (COP26) in Glasgow, Scotland, Britain November...
    The People's Bank of China announced that it will cut its reserve requirement for banks, which will free up 1.2 trillion yuan, or $188 billion. The move comes as China has begun to experience an economic slowdown, and financial institutions such as Evergrande which has roughly $300 billion in liabilities , have struggled to pay down their debts. CHINESE REAL ESTATE GIANT'S POTENTIAL COLLAPSE CAUSES GLOBAL ECONOMIC ANXIETY The reserve requirement forces banks to hold on to liquid money in order to keep the financial system stable over the long term. Liquid money refers to assets that can be readily converted to cash, such as stocks or bonds. Reducing the requirement means that banks will be able to spend more of that money. The cut will take place starting Dec. 15. This is the second time China's central bank has cut its reserve requirements for banks this year, Reuters reported . The previous cut came in July. CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER In recent months, China had...
              moreby Thomas Catenacci   The Federal Reserve concluded that weather disasters are “not very” bad for financial institutions despite the Biden administration’s warnings that climate change is an “emerging” threat to banks. “We find that weather disasters over the last quarter century had insignificant or small effects on U.S. banks’ performance,” the report, published in November by the Federal Reserve Bank of New York, stated. “This stability seems endogenous rather than a mere reflection of federal aid.” The report added that extreme climate events “actually boosts profits” for larger banks because of increased loan demand. In addition, smaller banks are adept at avoiding mortgage lending in flood prone areas using local knowledge of the region they are based. Authors of the report noted that their findings “may be surprising.” “We again find that losses at larger (multi-county) banks are barely affected and their income increases significantly with exposure. For local banks, we do find more negative stability effects from extreme disasters. However, even these are not sufficiently large to threaten bank solvency,” the report said. “In part this may be due to...
    The Federal Reserve concluded that weather disasters are “not very” bad for financial institutions despite the Biden administration’s warnings that climate change is an “emerging” threat to banks. “We find that weather disasters over the last quarter century had insignificant or small effects on U.S. banks’ performance,” the report, published in November by the Federal Reserve Bank of New York, stated. “This stability seems endogenous rather than a mere reflection of federal aid.” The report added that extreme climate events “actually boosts profits” for larger banks because of increased loan demand. In addition, smaller banks are adept at avoiding mortgage lending in flood prone areas using local knowledge of the region they are based. Authors of the report noted that their findings “may be surprising.” “We again find that losses at larger (multi-county) banks are barely affected and their income increases significantly with exposure. For local banks, we do find more negative stability effects from extreme disasters. However, even these are not sufficiently large to threaten bank solvency,” the report said. “In part this may be due to offsetting effects....
    Mark Wilson/Getty Images. Former Treasury Secretary Lawrence Summers published a warning for Democrats on Monday, urging them not to dismiss inflation as “transitory.” Noting that Federal Reserve Chairman Jerome Powell had enumerated a view in August that inflation was temporary, Summers wrote in an op-ed for The Washington Post that Powell’s arguments were “wobbly at best.” citing, among other factors, that prices for goods outside food and energy were up 12 percent for the year, and the fact that job vacancy rates were at record highs. “Powell and his colleagues have rightly emphasized the need for close economic monitoring and attentiveness to inflation risks,” Summers wrote. “Now the Fed should signal that the primary risk is overheating and accelerate tapering of its asset purchases. Given the house-price boom, mortgage-related purchases should stop immediately. Because of inflation, real interest rates are lower, as money is easier than a year ago. The Fed should signal that this is unacceptable and will be reversed.” Unlike conservative critics and some economists, he took a less pessimistic view of President Joe Biden’s proposal for $1.75 trillion in new...
    Saule Omarova, President Joe Biden’s nominee for the Office of the Comptroller of the Currency (OCC), called during a March 2021 virtual conference to eliminate all private bank accounts and deposits. Omarova spoke at the Law and Political Economy (LPE) Project’s “Law & Political Economy: Democracy Beyond Neoliberalism” conference in March. Omarova discussed one of her papers, “The People’s Ledger How to Democratize Money and Finance the Economy,” which would help “redesign” the financial system and make the economy “more equitable for everyone.” She said it would change the “private-public power balance” and democratize finance to a more systemic level. During her explanation of her paper, she said that the Federal Reserve, the nation’s central bank, can only use “indirect levers” to “induce private banks to increase their lending.” Her paper calls for eliminating all banks and transferring all bank deposits to “FedAccounts” at the Federal Reserve. During her conference speech, she said, “There will be no more private bank accounts, and all of the deposit accounts will be held directly at the Fed”: Omarova said her proposal would...
    Randal K. Quarles, vice chairman of the Federal Reserve Board of Governors, testifies before a Senate Banking, Housing and Urban Affairs Committee hearing on "Oversight of Financial Regulators" on Capitol Hill in Washington, December 5, 2019.Erin Scott | Reuters Federal Reserve Governor Randal Quarles said he is stepping down from his post around the end of the year, an announcement that comes a little over a month after leaving his position as the Fed's supervisor of the banking system. The move was not unexpected but became official Monday and will be effective "during or around the last week of December," Quarles said in a letter to President Joe Biden. Though his actual term on the board of governors does not expire for another 11 years, Quarles announced he is walking away from the special supervisory role that was established in the wake of the 2008-09 financial crisis. "It has been a great privilege to work with my colleagues on the Board, throughout the Federal Reserve System, and among the global central banking and regulatory community," Quarles wrote. Quarles was named...
    Former Treasury Secretary Lawrence Summers on Thursday blasted the Federal Reserve and other central banks for not addressing the growing threat of inflation, instead focusing on maximum employment and social issues like climate change. Summers told attendees at a virtual conference held by the Institute of International Finance that arguments by the Federal Reserve downplaying the long-term risk of inflation are similar to those made by former Federal Reserve chairs like Arthur Burns and G. William Miller, who presided over the 1970s inflation crisis. “We’re in more danger than we’ve been during my career of losing control of inflation in the U.S.,” Summers said, according to Bloomberg. “We’ve gone even further towards losing it in Britain and I think we’re at some risk in Europe.” Flags fly over the Federal Reserve Building on December 16, 2008, in Washington, D.C. (Mark Wilson/Getty Images) Summers is the president emeritus and a professor at Harvard University. He previously served as director of the National Economic Council under former President Barack Obama and Treasury Secretary under former President Bill Clinton. Federal Reserve policy makers...
                      by Harry Wilmerding  Federal Reserve Governor Lael Brainard believes financial regulators should tell banks how to tackle climate change as a way to monitor threats to the overall financial system, The Wall Street Journal reported. Brainard outlined in a speech how the central bank should prepare for climate change events like flooding and wildfires, which she thinks could deliver a shock to the markets and economy. “Ultimately, I anticipate it will be helpful to provide supervisory guidance for large banking institutions in their efforts to appropriately measure, monitor, and manage material climate-related risks, following the lead of a number of other countries,” Brainard said during the speech. “Climate change could have profound consequences for the level, trend growth and variability of economic activity over time,” Brainard added. She believes that the COVID-19 pandemic “is a stark reminder that extreme events can materialize with little warning and trigger severe financial losses and market disruptions.” Brainard said that the Federal Reserve is looking at ways to implement scenario analyses to calculate the risk of climate...
    Senator Elizabeth Warren (D-MA) is demanding that the US Securities and Exchange Commission (SEC) open an investigation into three top Federal Reserve officials' potential 'insider trading' during the COVID-19 pandemic on Monday. In a letter to SEC Chair Gary Gensler, Warren asked him to probe securities trading of Fed Vice Chair Richard Clarida, Dallas Fed President Robert Kaplan and Boston Fed President Eric Rosengren after stunning reports emerged they cashed in on the market while millions of Americans were reeling from the pandemic's economic effects. Rosengren and Kaplan resigned after a public outcry over their transactions.  DailyMail.com asked the SEC to confirm whether Gensler had received the letter but the agency declined to comment.  The progressive senator also took aim at Fed Chair Jerome Powell, hinting that he knew they violated insider trading rules and did nothing to stop it. 'If these trades were based on Fed officials' knowledge of non-public, market moving information, they may have represented potentially illegal activity,' Warren wrote. 'It is not clear why Chair Powell did not stop these activities, which corrode the trust and effectiveness...
    Senator Elizabeth Warren unleashed on Federal Reserve Chairman Jerome Powell, calling him a 'dangerous man' and announcing she'll oppose a second term during a Senate Banking Committee hearing on the economic recovery from the COVID-19 pandemic Tuesday. Powell, who was nominated by former President Trump, will see his term expire in February. President Biden has indicated that he'd reappoint Powell, earning pushback from progressives like Warren and Rep. Alexandria Ocasio-Cortez of New York. Warren argued that Powell weakened the US banking system by rolling back financial regulations that were enacted after the 2008 financial crisis.  'I came to Washington after the 2008 crash to make sure that nothing like that would ever happen again. Your record gives me grave concern,' the Massachusetts lawmaker said. 'Over and over, you have acted to make our banking system less safe, and that makes you a dangerous man to head up the Fed, and it's why I will oppose your re-nomination.'  Senator Elizabeth Warren confronted Federal Reserve Chairman Jerome Powell on regulations he's eased since the 2008 financial crisis In 2019, the Fed weakened rules...
    Sen. Elizabeth Warren said she opposes the renomination of Federal Reserve Chairman Jerome Powell, branding him “a dangerous man” for his handling of the regulation of big banks. The disclosure came during a Senate Banking Committee hearing with Powell and Treasury Secretary Janet Yellen. Warren, known for being a regulatory hawk, blasted the chairman for his perceived friendliness toward Wall Street. “Renominating you means gambling that, for the next five years, a Republican majority at the Federal Reserve with a Republican chair who has regularly voted to deregulate Wall Street won’t drive this economy over a financial cliff again,” the Massachusetts Democrat said. Warren said Powell has been “lucky” and invoked the 2008 financial collapse to argue that his deregulatory actions could end up causing economic peril in the future. FED HOLDS INTEREST RATES STEADY AS IT EYES FUTURE TAPERING “Your record gives me grave concern,” Warren told Powell. “Over and over, you have acted to make our banking system less safe, and that makes you a dangerous man to head up the Fed....
    WASHINGTON (AP) — Robert Kaplan will step down as president of the Federal Reserve Bank of Dallas early next month, the Dallas Fed announced Monday. Kaplan, 64, will become the second senior Fed official to resign after ethics questions were raised this month over their trading activity in the financial markets. Kaplan’s planned resignation follows a similar announcement earlier Monday by Eric Rosengren, president of the Boston Fed. The two officials’ financial disclosures sparked criticism from government watchdogs after they revealed extensive stock trading in 2020, when the Fed was spending trillions of dollars stabilizing financial markets and boosting the economy. Because of their trading, the two officials could potentially have profited from the Fed’s actions. Though the investments by Rosengren and Kaplan were permitted under the Fed’s rules, they raised at least the appearance of conflicts of interest, which Fed policy discourages. “The Federal Reserve is approaching a critical point in our economic recovery as it deliberates the future path of monetary policy,” Kaplan said in a statement. “Unfortunately, the recent focus on my financial disclosure risks becoming...
    Federal Reserve Bank of Boston President Eric Rosengren, who has been mired in an ethics controversy surrounding trades made during the pandemic, will be resigning nine months early because of health concerns. Rosengren has been facing public scrutiny over trades of securities that could be influenced by Fed policy. The Boston Fed said in a news release that Rosengren, 64, would be out of his role by the end of the week. He had previously planned to retire in June of next year. “It has been an honor to serve at the Federal Reserve system, in a job where one can be constantly engaged in pursuing the economic and financial well-being of the country and New England,” he said about the decision. “I know that my colleagues will build on our progress, and continue making a difference for the public we serve.” Rosengren has been suffering from an unspecified kidney issue and qualified for the kidney transplant list more than a year ago amid the COVID-19 pandemic, he revealed to the Boston Fed. The central bank said...
    VIDEO5:0205:02I was not aware of the specifics: Powell on Fed officials buying and selling of securitiesPower Lunch Federal Reserve Chairman Jerome Powell on Wednesday said the central bank's current trading rules are insufficient and promised that it would "make changes" after filings showed that officials traded stocks and bonds that could be influenced by its policy actions. Specifically, Powell said that Fed officials should as a general rule be barred from owning assets that the central bank purchases as part of its regular asset purchases and emergency liquidity measures. Two weeks ago, financial disclosures filed by the Fed's 12 regional bank presidents revealed some had traded frequently throughout 2020, while others held million-dollar positions without material changes to their portfolios. The Fed on Thursday said that Chairman Jerome Powell had ordered a "fresh and comprehensive look at the ethics rules around permissible financial holdings and activities by senior Fed officials." Annual portfolio disclosures released over the past month showed that Dallas Fed President Robert Kaplan made multiple trades worth $1 million or more in 2020 in individual stocks including Apple, Amazon and...
    Mark Makela/Getty Images Federal Reserve Chairman Jerome Powell on Thursday ordered a review of the central bank’s ethics rules after top officials last week disclosed making multimillion-dollar stock trades during the Covid-19 pandemic. “Because the trust of the American people is essential for the Federal Reserve to effectively carry out our important mission, Chair Powell late last week directed board staff to take a fresh and comprehensive look at the ethics rules around permissible financial holdings and activities by senior Fed officials,” a Fed spokesman said in an afternoon statement to media. The announcement came after Dallas Fed President Robert Kaplan and Boston Fed President Eric Rosengren revealed in disclosures last week that they bought and sold stocks and assets linked to real estate last year even as the Fed contemplated measures to prop up the economy with historic stimulus measures. Both officials said they would divest after criticism of their disclosures. “While my financial transactions conducted during my years as Dallas Fed president have complied with the Federal Reserve’s ethics rules, to avoid even the appearance of any conflict...
    The president of the Federal Reserve Bank of Dallas traded millions of dollars worth of stocks last year, according to financial disclosures. Robert Kaplan, who leads one of the 12 Federal Reserve regional banks, had 27 holdings worth more than $1 million each, according to disclosures obtained by the Daily Caller News Foundation. The Wall Street Journal first reported Kaplan’s financial disclosures. Kaplan’s stock portfolio included Apple, Amazon, Boeing, Tesla, Delta Airlines, Google parent company Alphabet, General Electric and Facebook, among others. “All transactions were reviewed by the Dallas Fed’s General Counsel who confirmed the transactions were in compliance with the Bank’s Code of Conduct,” Dallas Fed spokesperson James Hoard told the DCNF. “No trades were made during the Federal Reserve’s blackout period, during which trading activity is prohibited.” Fed officials are barred from granting interviews, releasing public statements or making trades during predetermined blackout periods, which begin before Federal Open Market Committee meetings and end after. (RELATED: ‘Squad’ Calls On Biden To ‘Reimagine’ Federal Reserve, Remove Chairman) Kaplan was by far the most active stock trader last year, financial...
    U.S. President Joe Biden has until February to decide whether he wants to appoint Federal Reserve Board Chair Jerome Powell to a second term, but Democratic politicians and liberal-leaning activist groups are already pressuring the administration to pick someone more progressive to lead the nation's central bank.  While it may seem early for Washington power players to get wound up over the prospects of a possible replacement for Powell six months from now, the controversy speaks to the extraordinary importance of the job Powell holds.  "The first thing to appreciate is just how powerful the role of the Federal Reserve chair is," said David Wessel, director of the Hutchins Center on Fiscal and Monetary Policy at the Brookings Institution. "Whoever holds that job is the single most important economic policymaker in the world, which is why markets all over the globe hang on every adverb and raised eyebrow that comes from the Fed chair. So this is a big deal."  Most experts believe that a reappointment of Powell is the most likely outcome, but that is unlikely to stop activists'...
    A group of progressive lawmakers led by Congresswoman Alexandria Ocasio-Cortez is calling on President Biden to replace Federal Reserve Chairman Jerome Powell, whose term expires early next year. The lawmakers said Powell, who has served as head of the Central Bank since 2018, has not done enough to address the risks of climate change on the financial system and has weakened regulations. "At a time when the Intergovernmental Panel on Climate Change is warning of the potential catastrophic and irreversible damage inflicted by a changing climate, we need a leader at the helm that will take bold and decisive action to eliminate climate risk," wrote the group of lawmakers, which includes Representatives Ayanna Pressley of Massachusetts, Rashida Tlaib of Michigan, Jesus Garcia of Illinois and Mondaire Jones of New York. At the same time, the group accused Powell of "substantially" weakening reforms made in the wake of the Great Recession to regulate big banks.  "During the 2008-financial crisis, millions of Americans lost their homes and jobs, and many have failed to fully recover," the statement said. "Weakening financial regulations...
    Several members of the The Squad  have called on President Joe Biden to dump Federal Reserve Chair Jerome Powell and replace him with someone more environmentally friendly. Powell's term as chair ends in February and Biden is mulling whether to reappoint him or replace him with someone new.  Reps. Alexandria Ocasio-Cortez, Ayanna Pressley and Rashida Tlaib - part of the progressive Democrats known as The Squad - asked Biden to consider 'a Federal Reserve focused on eliminating climate risk and advancing racial and economic justice' when he makes his choice.  The Federal Reserve sets monetary policy for the United States.  The statement from the liberal lawmakers - which included Reps. Mondaire Jones and Jesús 'Chuy' García - is part of their effort to insert more progressive policies into the Biden administration. Biden has said combatting climate changes is one of his top priorities as president. Reps. Alexandria Ocasio-Cortez (left), Ayanna Pressley (center) and Rashida Tlaib (right) urged President Biden to dump Jerome Powell as Fed chair In their statement, the Democrats acknowledge Powell made positive changes at the...
    New York (CNN Business)Progressive Democrats, including New York Rep. Alexandria Ocasio-Cortez, are calling on President Joe Biden to give the Federal Reserve a sweeping makeover by replacing Jerome Powell as chairman."We urge President Biden to reimagine a Federal Reserve focused on eliminating climate risk and advancing racial and economic justice," the lawmakers said in a statement Tuesday morning.In addition to Ocasio-Cortez, the statement was issued Reps. Rashida Tlaib of Michigan, Ayanna Pressley of Massachusetts, Mondaire Jones of New York and Chuy Garcia of Illinois, all members of the Congressional Progressive Caucus.Powell, a Republican and former investment banker, was nominated to lead the powerful Federal Reserve by former President Donald Trump in 2017, who later sharply criticized his handpicked chairman. Powell's term as chair expires in February, and the White House has not said whether he will be reappointed.Under Powell, the Fed wasted little time responding forcefully to the economic fallout from the pandemic in March 2020. Economists have credited the Fed's historic actions with helping to prevent a full-blown depression and financial crisis in the United States.Read MoreThe Fed is...
    THE Federal Reserve, also known as the Fed, is the central bank of the US. We explain what the Federal Reserve does and how it works. 1We explain what you need to know about the Federal ReserveCredit: Getty What does the Federal Reserve do? The Federal Reserve was created in 1913 to provide Americans with a safer and more flexible and stable monetary and financial system. Today, the Fed's responsibilities fall into four general areas. These are: Conduct the nation's monetary policy This includes influencing money and credit conditions in the economy in order for Americans to be unemployed and for prices to be stable. To achieve this, the Fed has set an inflation target rate of 2%. Most read in MoneyMORE MONEY New payment 'to arrive THIS WEEK' from IRS & be deposited in bank accountsCASH COMING August child tax payment date revealed telling parents when money is availableCHECKED OUT Americans could miss out on fourth stimulus checks despite Covid cases surgingCHECK IN MAIL Millions to get child-tax payments as second round is set to come this...
    Federal Reserve Chairman Jerome Powell said Friday climate change is a threat to the global economy and called for the United States to lead a coordinated response to that threat. “There is no doubt that climate change poses profound challenges for the global economy and certainly the financial system,” Powell said in remarks made virtually at the Green Swan Conference. The conference website describes its mission: The Bank for International Settlements, Bank of France, International Monetary Fund and Network for Greening the Financial System are joining forces to co-sponsor a truly unique global virtual conference on “How in practice can the financial sector take immediate action against climate change-related risks?” CNN reported on Powell, who has served under Presidents Barack Obama, Donald Trump, and Joe Biden: Powell said the Fed sees its role in the climate crisis as “an important one tied tightly to existing mandates.” The climate crisis could create financial risks that would fall into the Fed’s responsibilities for supervising banks and monitoring financial stability. The Fed chief said the global response will require “bold steps and decades of...
    Americans should be back to work by next year, though Biden administration leaders said more needs to be done to get the economy on track. Treasury Secretary Janet Yellen and Federal Reserve Chairman Jerome Powell told lawmakers Tuesday the country has avoided the worst of the economic fallout from the coronavirus pandemic, expressing cautious optimism for the nation's economic outlook. "With the passage of the Rescue Plan, I am confident that people will reach the other side of this pandemic with the foundations of their lives intact, and I believe they will be met there by a growing economy," Yellen said during her opening statement Tuesday before the House Financial Services Committee. She and Powell testified virtually as part of the committee's oversight of the federal response to the pandemic, their first joint appearance as part of the administration. The Treasury Department is implementing multiple provisions of the $1.9 trillion stimulus package.  Republicans raised concerns about the costs amid reports of a $3 trillion proposal to put more money toward job creation, as well as reports the Biden administration...
    The Federal Reserve has created a new climate committee to address the risks climate change poses to financial stability. The new effort, called the Financial Stability Climate Committee, will draw from expertise across the Federal Reserve system and is intended to tackle risks to the broader financial system, said Lael Brainard, a member of the Federal Reserve’s board of governors. She announced the new committee during remarks Tuesday at a virtual conference hosted by the sustainable investment group Ceres. SEC TAKES FIRST STEP TOWARD REQUIRING COMPANIES TO DISCLOSE EMISSIONS AND CLIMATE RISKS The committee comes in addition to the Fed’s creation of a separate climate initiative earlier this year, the Supervision Climate Committee, that is focusing more closely on ensuring individual financial firms that the Fed oversees are prepared for climate-related risks. The new committee will be focused on not just assessing potential climate shocks “but also whether climate change might make the financial system more vulnerable in ways that could amplify these shocks and cause broader knock-on effects that could harm households, businesses, and communities,” Brainard said. She added...
    Senate Banking Committee Republicans led by Ranking Member Pat Toomey urged Federal Reserve Chair Jerome Powell not to pursue environmental policies in a letter Thursday. Toomey and the other Republican committee members warned that the Federal Reserve potentially using regulatory authority to push an environmental agenda would be beyond its scope of authority, according to the letter sent Thursday. The senators noted several recent actions taken by the Federal Reserve that suggest the U.S. central bank could pursue climate policies. “We question both the purpose and efficacy of climate-related banking regulation and scenario analysis, especially because the Federal Reserve lacks jurisdiction over and expertise in environmental matters,” the Republican senators wrote. The Banking Committee Republicans referenced the Federal Reserve’s decision to include climate change in its recent financial stability report for the first time ever and its decision to join the Network of Central Banks and Supervisors for Greening the Financial System in December. The Federal Reserve also recently created the “Supervision Climate Committee.” Federal Reserve Gov. Lael Brainard said last month that the central bank may begin subjecting banks...
    Vanessa Villarreal Source: courtesy The visibility and transparency offered by increasingly sophisticated information systems in their articulation, operation and scope have allowed the application of objective elements to evolve and be perfected in the methodology of the calculations of financial indicators. Among the relevant changes that were observed during 2020, the replacement of the LIBOR reference rate (London Interbank Offered Rate) for the new SOFR overnight guaranteed financing rate (Secured Overnight Financing Rate) which took effect in October 2020 for nearly one million contracts between the London Clearing House (LCH), the Chicago Mercantile Exchange (CME Group) and the Eurex Stock Exchange that made the transition from the Price Alignment and Discount Interest (PAI) to the Effective Rate of Federal Funds (EFFR) at the SOFR Rate as reported by the FSB (Financial Stability Board) which is an international body that monitors and makes recommendations on the global financial system based in Switzerland. The LIBOR rate emerged in the mid-1980s and had been the benchmark interest rate for setting credit agreements. It was established by different currencies and maturities where...
    The Federal Reserve said it is restoring services that were thrown offline Wednesday by an “operational error” that spurred outages in a dozen areas, including check clearing and Fedwire, which handles trillions of dollars in transactions daily for the world’s biggest banks. “A Federal Reserve operational error resulted in disruption of service in several business lines,” the Fed told Reuters in an emailed statement. “We are restoring services and are communicating with all Federal Reserve Financial Services customers about the status of operations.” All nine of the Fed’s electronic services crashed in the early afternoon, and by 2:30pm EST, had been restored, but the key Fedwire Funds system that allows banks to settle large payments like mortgages or commercial loans, and acts as a clearinghouse for financial institutions executing major transactions, was still down. The affected services form the hidden backbone to the US banking system, facilitating check clearing and allowing billions of dollars of payments to flow daily through the financial system, including credit and debt transfers, and all transactions of US Treasury bonds. The outage was being...
    Pregnant women at higher risk for COVID infection, study says; New York City could run out of vaccine today: Live updates Senator jets off to Mexico as Texas slammed by winter storm © AFP via Getty Images THE FED Load Error Three years after other major central banks began to focus on the risks to their financial systems from climate change, the Federal Reserve has started the process of catch-up. “Addressing climate-related risks and opportunities… will not be easy,” Federal Reserve Governor Lael Brainard said Thursday. “The long time horizon associated with climate change, the lack of historical data, the potential for sudden shifts in asset valuations, and the paucity of information on the climate-sensitivity of exposures complicate the translation of climate-related risks into measures of credit, market, liquidity, reputational, and operational risks,” Brainard said. In her remarks Brainard suggested she favors “mandatory disclosures” to help investors assess and price climate risks. Brainard stressed she was not speaking for the entire Fed board of governors. She said that “scenario analysis” might be a tool to assess risks to...
    Getty Rep. Jamie Raskin and wife Sarah Bloom Raskin. Sarah Bloom Raskin is a lawyer and civil servant married to Representative Jamie Raskin, who is serving as the lead impeachment manager in the Senate trial against former President Donald Trump. Bloom and Raskin have been married for more than 30 years and raised three children. Here’s what you need to know: 1. Raskin Was the First Woman to Serve as Deputy Treasury Secretary During the Obama Administration Getty US Deputy Secretary of the Treasury Sarah Bloom Raskin attends the Asia-Pacific Economic Cooperation (APEC) Finance Ministers’ Meeting in Beijing on October 22, 2014. Raskin made history in March 2014 when the Senate confirmed her as the Deputy Secretary of the Treasury Department. She was the first woman confirmed to the role and at the time, the highest-ranking woman in the department’s history, as the New York Times reported. (Janet Yellen claimed that title when she was confirmed as President Joe Biden’s Treasury Secretary in 2021). Then-Secretary Jacob J. Lew praised Raskin in a news release at...
    Treasury Secretary Janet Yellen will meet with top financial regulators to discuss the recent stock market frenzy propelled by a mass movement of retail investors on Reddit targeting GameStop and other heavily shorted stocks. Yellen will meet this week, as soon as Thursday, with the heads of Securities and Exchange Commission, the Federal Reserve, the Federal Reserve Bank of New York and the Commodity Futures Trading Commission, the Treasury said on Tuesday. “Secretary Yellen believes the integrity of markets is important and has asked for a discussion of recent volatility in financial markets and whether recent activities are consistent with investor protection and fair and efficient markets,” Treasury spokeswoman Alexandra LaManna said in a statement to Reuters. Before calling the meeting, Yellen, a former Federal Reserve chairman, received clearance from ethics lawyers since she was paid a hefty sum by a firm that was a key player in the market volatility. Yellen received $810,000 by hedge fund Citadel for three events in 2019 and 2020, according to disclosure forms. The firm reportedly infused $2 billion into Melvin Capital Management,...
    Gold Glove shortstop Andrelton Simmons reveals 2020 opt-out was due to battle with depression 9 Breads to Always Leave on Grocery Store Shelves Yellen Summons Regulators to Discuss Financial Market Volatility (Bloomberg) -- Treasury Secretary Janet Yellen summoned U.S. financial regulators to discuss recent volatility in financial markets, her first effort to address the tumult involving GameStop Corp. shares and broker-dealer RobinHood Markets Inc. © Bloomberg Janet Yellen, chair of the U.S. Federal Reserve, speaks during an event at the International Monetary Fund (IMF) in Washington, D.C., U.S., on Wednesday, July 2, 2014. Yellen called a meeting with the Securities and Exchange Commission, the Federal Reserve Board, the Federal Reserve Bank of New York and the Commodity Futures Trading Commission, the Treasury said in a statement late Tuesday. Load Error “Secretary Yellen believes the integrity of markets is important and has asked for a discussion of recent volatility in financial markets and whether recent activities are consistent with investor protection and fair and efficient markets,” the Treasury said. Read more: Washington Lets Stock Mania Unfold in Reminder of...
    Federal Reserve Chair Jerome Powell speaks during a Senate Banking Committee hearing on Capitol Hill, Washington, December 1, 2020.Al Drago | Pool | Reuters Some market pros see the frenzied short squeezes in Gamestop and other stocks as signs of a bubble brewing, but the Federal Reserve doesn't seem to and for that reason investors expect asset prices could continue to rise. Fed Chairman Jerome Powell, at his post meeting briefing Wednesday, was asked about the potential of Fed policy to fuel bubbles in markets and in housing. Powell explained that the Fed has had to use its extraordinary policy to help the economy with still more than 9 million people out of work. "It's very much appropriate that monetary policy be accommodative," he said. Powell also said with regard to financial stability, the Fed considers asset prices, leverage in the banking system and non banking system, as well as funding risk. "I would say financial stability vulnerabilities are overall moderate," he said, adding the Fed's goals are also to prevent long-term damage to the economy and make sure...
    By MARTIN CRUTSINGER, AP Economics Writer WASHINGTON (AP) — A top government financial oversight panel says that the turbulence in financial markets last spring has exposed problems in the operation of money market funds that will need to be corrected before the next crisis hits. The President's Working Group on Financial Markets, led by the Treasury Department, issued a report Tuesday which said that the flight to safety triggered by the coronavirus pandemic last spring pointed to the need for reforms that will make money market funds less vulnerable to investors rushing to withdraw their funds. “During March, money markets experienced significant outflows, forcing Treasury and the Federal Reserve to step in to prevent a destabilizing run,” Deputy Treasury Secretary Justin Muzinich said in a statement accompanying the report. “We must now consider reforms to ensure this vulnerability does not threaten financial stability,” he said. The crisis last March prompted the Federal Reserve to purchase billions of dollars in Treasury securities and other bonds to stabilize financial markets and cope with a massive sell-off by investors that was larger than...
    WASHINGTON (AP) — A top government financial oversight panel says that the turbulence in financial markets last spring has exposed problems in the operation of money market funds that will need to be corrected before the next crisis hits. The President’s Working Group on Financial Markets, led by the Treasury Department, issued a report Tuesday which said that the flight to safety triggered by the coronavirus pandemic last spring pointed to the need for reforms that will make money market funds less vulnerable to investors rushing to withdraw their funds. “During March, money markets experienced significant outflows, forcing Treasury and the Federal Reserve to step in to prevent a destabilizing run,” Deputy Treasury Secretary Justin Muzinich said in a statement accompanying the report. “We must now consider reforms to ensure this vulnerability does not threaten financial stability,” he said. The crisis last March prompted the Federal Reserve to purchase billions of dollars in Treasury securities and other bonds to stabilize financial markets and cope with a massive sell-off by investors that was larger than the sell-off that was triggered by...
    Federal Reserve Chair Jerome Powell prepares for a House Financial Services Committee hearing on "Oversight of the Treasury Department's and Federal Reserve's Pandemic Response" in the Rayburn House Office Building in Washington, D.C. on Dec. 2, 2020.Jim Lo Scalzo | Reuters The Federal Reserve has made a move that cements its nod to the risk that climate change could pose to the financial system. In a statement released Tuesday, the central bank said it has formally joined a global peer group that is addressing climate's impact on finance. The Network of Central Banks and Supervisors for Greening the Financial System, as it's called, was formed in 2017 and now has 83 members from around the world. The U.S. already had been an informal participant for more than a year. "As we develop our understanding of how best to assess the impact of climate change on the financial system, we look forward to continuing and deepening our discussions with our … colleagues from around the world," said Federal Reserve Board Chair Jerome H. Powell in a statement. More from Impact Investing:Here's...
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