– The Federal Reserve edged towards a longer-range plan for monetary policy at its meeting last month, raising serious questions about a strategy known as yield curve control that is untested in the United States, and signaling it may rely on explicit promises about its inflation or employment goals to steer public expectations. Minutes from the U.S. central bank’s June 9-10 meeting indicate policymakers held a lengthy debate about the critical next steps they may…"Fed mulls promises for the future, appears to discount yield curve control"
WASHINGTON – U.S. lawmakers on Tuesday will get another chance to grill the heads of the Federal Reserve and Treasury over the effectiveness of the nearly $3 trillion in emergency aid doled out to stem the economic fallout from the novel coronavirus pandemic. The U.S. central bank, with Treasury’s backing, has launched programs to improve the flow of credit as economic activity cratered and millions of jobs were lost, including its new Main Street Lending…"Powell, Mnuchin enter the lion’s den again to discuss pandemic response"
NEW YORK – Goldman Sachs Group Inc has already boosted capital measures and is working to meet the Federal Reserve’s benchmark for October, the Wall Street bank said in a statement on Monday. Investors and analysts were eager to hear Goldman’s announcement because the bank fared worse than rivals on the Fed’s stress test last week, sending its share price tumbling. The Fed examined big banks’ balance sheets to see if they had enough funds…"Goldman Sachs says it’s climbing toward Fed’s capital demands"
SAN FRANCISCO – Banks across the United States are facing a shortage of coins during coronavirus crisis, prompting the U.S. Federal Reserve to ration distribution and work with the U.S. Mint to boost supply. With the partial closure of the economy due to the coronavirus crisis, “the flow of coins through the economy has kind of stopped,” Federal Reserve Chair Jerome Powell told the House Financial Services Committee. Making matters worse, the U.S. Mint has…"Americans face new coranavirus challenge: a shortage of coins"
SAN FRANCISCO – The best way the Federal Reserve can help reduce racial inequality is to return the U.S. labor market to its pre-coronavirus strength, U.S. Fed Chair Jerome Powell said on Tuesday, as he sidestepped questions over whether the Fed itself contributes to the problem. Anger over racism and inequality has swept the country since the police killing of George Floyd May 25 in Minneapolis, with people protesting en masse despite the ongoing threat…"Fed Chair Powell says strong job market can reduce U.S. racial inequality"
WASHINGTON – Systemic racism and high unemployment levels among black and Hispanic Americans create a drag on the U.S. economy, Dallas Federal Reserve President Robert Kaplan said on Sunday. “A more inclusive economy where everyone has an opportunity will mean faster workforce growth, faster productivity growth and will grow faster. And so I think we’re right to focus on this and bore in on this,” Kaplan said on CBS’ “Face the Nation.” Kaplan said he…"Systemic racism slows down economic growth, Dallas Fed chief says"
– Atlanta Federal Reserve Bank President Raphael Bostic, the Fed’s only African American policymaker, on Friday issued an impassioned call for an end to racism and laid out ways the U.S. central bank can help do so. “I have shared in the outrage of the truly horrific events that brought us to this point,” Bostic wrote on the bank’s website, referring to the May 25 killing of George Floyd during an arrest by Minneapolis police,…"Fed’s Bostic calls for end to racism, says Fed can play a role"
TOKYO – Japanese investors have clipped the wings of a resurgent U.S. dollar as they position for the likelihood that the U.S. Federal Reserve will take steps to flatten the Treasury yield curve. Ahead of the Fed’s two-day policy meeting that ends on Wednesday, speculation is growing that the U.S. central bank might adopt yield targets on bonds, or some other measures to anchor long-term yields. The yield curve has steepened in recent days as…"Japanese traders gird for Fed to anchor yields, clip dollar’s wings"
– Federal Reserve Chair Jerome Powell will testify before the U.S. Congress on June 16 and 17 in hearings on the central bank’s semi-annual monetary policy report. By statute, the Fed delivers the report providing an overview of the economy twice a year, usually in February and again in June or July, and the chair appears in successive days of hearings before the Senate Banking and House Financial Services committees. He will testify to the…"Fed’s Powell scheduled for congressional appearances June 16-17"
CHICAGO – High borrowing costs will limit participation in a $500 billion U.S. Federal Reserve short-term borrowing program set up to address state and city revenue shortfalls due to the economic fallout from the coronavirus outbreak, analysts said. While Illinois, the lowest-rated U.S. state at a notch above junk, passed a bill late last week authorizing borrowing up to $5 billion through the Fed’s municipal liquidity facility (MLF), legislation is pending in few other states.…"U.S. states, cities may snub Fed lending program over high rates"