The Federal Open Market Committee (FOMC) of the Board of Governors of the Federal Reserve System today announced that its asset purchase program, known as QE3 (quantitative easing) will end this month, citing sufficient economic growth.
Read More »Financial Regulators Finalize QRM Rule
Federal regulators announced on Tuesday they have finalized a rule establishing a risk retention framework for mortgage lenders securitizing and selling loans.
Read More »Fed’s Labor Market Index Shows Signs of Recovery In September
As a broad measure of the market, the Fed's index includes a number of indicators that go beyond just the national unemployment rate, including average hourly earnings, hiring rates, and labor force participation, among others.
Read More »Analysts Forecast Economic Growth for 2015
Despite slower growth early in the year and a disappointing showing in August, the labor market managed to add more than 1.7 million jobs in 2014's first eight months, coming in at 300,000 more than average over the previous three years as payrolls kept up a steady streak of monthly gains above 200,000.
Read More »Federal Reserve Announces Bond-Buying Cuts
More than two years after the central bank kick off its latest economic stimulus program, policymakers at the Federal Reserve once again voted this week to scale down monthly asset purchases—and hinted that the end is in sight.
Read More »Risk Retention Rule Nearing Completion
Federal Reserve governor Daniel Tarullo echoed Gruenberg's statement, though he was less concrete on a timeline: "I don't know whether I'd say by the end of the year, but I think we're definitely in the home stretch." As it was proposed in 2011, the rule originally called for securities issuers to hold on to 5 percent of a mortgage's risk after selling it unless the borrower made a 20 percent down payment.
Read More »Investors Skeptical of Fed Rate Increase Forecast
In their latest economic projections from June, the members of the Federal Open Market Committee (FOMC) projected a median federal funds rate of 1 percent at year-end 2015 and 2.5 percent at the end of 2016. Based on their own modeling, the analysts say investors put the probability of the federal funds rate hitting the FOMC's target next year at 31 percent, with 2016's projected rate having a 27 percent probability.
Read More »Fed Governor Proposes Higher Capital Surcharge on Big Banks
In an effort to avoid a repeat of the 2008 financial crisis, Fed Governor Daniel Tarullo announced on September 9 to the Senate Banking Committee that the Federal Reserve is planning to impose a capital surcharge on the nation's biggest banks that is higher than that of their international counterparts.
Read More »Federal Reserve: Housing Mirrors Modest Economy Growth
Growth was described as "modest" in the New York, Cleveland, Chicago, Minneapolis, Dallas, and San Francisco districts, while Philadelphia, Atlanta, St. Louis, and Kansas City reported “modest” growth. Looking ahead, contacts in about half of the districts "generally remained optimistic about future growth," while most of the other districts saw ongoing optimism in specific sectors.
Read More »Fed and FDIC Complete Review of Bank “Living Wills”
The Board of Governors of the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) announced Tuesday that it had completed the review of the second round of resolution plans submitted by 11 large banks.
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