Fed hints that rate hikes may moderate, but not coming down anytime soon
Federal Reserve Chair Jerome Powell said that interest rates could climb less quickly as early as December, but warned that cutting rates "is not something we want to do soon."
Politics and policy
CFPB asks Supreme Court to uphold constitutionality of its funding
The Consumer Financial Protection Bureau is challenging a recent appeals court decision that its funding through the Federal Reserve Board violates the separation of powers doctrine. That ruling "threatens to inflict immense legal and practical harms" on financial regulation, the CFPB says.
For the Fed, less bad news is good news
The Federal Reserve notched two badly needed wins last week, as inflation showed signs of easing and the financial system withstood the collapse of one of the world's biggest crypto firms. Here's what that means for the central bank moving forward.
Arizona voters approve new limits on consumer debt collection
A ballot initiative that places additional restrictions on debt collectors and decreases the interest rates that can be charged on medical debt passed Tuesday by an overwhelming margin. Consumer advocates say it will ease the burden on households dealing with hardship, but industry groups contend that it will make credit more expensive.
Why the CFPB’s guidance on unfair practices will keep giving banks trouble
The CFPB's recent guidance on so-called "unfair" bank fees has created legal turmoil for banks and financial firms after the White House claimed the bureau's actions were settled law.
Fed cites inflation, monetary policy as top financial stability concerns
The Federal Reserve's semiannual financial stability report said the threat of continued high prices and the Fed's response to them are top threats for banks and other market participants.
What happens when the CFPB’s funding question hits the Supreme Court?
Legal experts are gaming out the various options for the CFPB after a three-judge panel of the U.S. Court of Appeals for the 5th Circuit ruled on Oct. 19 that the bureau's funding is unconstitutional.
Brown urges Fed not to lose sight of employment mandate amid inflation fight
In a letter to Federal Reserve Chair Jerome Powell, the chair of the Senate Banking Committee warned that the Fed was in danger of going too far in its efforts to tame inflation.
The hidden dangers in the Fed’s balance-sheet reduction
The central bank has recently stepped up its efforts to reduce its balance sheet, but doing that without forcing a liquidity crunch requires careful planning.
Fed’s John Williams says rates could hit 4.5% over time
During a visit to Buffalo on Friday, New York Federal Reserve President John Williams said the central bank may need to keep cranking up interest rates to gain greater control over high inflation.
House Republicans challenge Fed’s ability to create CBDC without Congress
The lawmakers have asked Attorney General Merrick Garland to share the Department of Justice's analysis on creating a central bank digital currency by Oct. 15.
Fed’s Brainard: Global rate hikes could threaten financial stability
Interest rate increases by central banks have compounding effects and could exacerbate weaknesses in the global financial system, Federal Reserve Vice Chair Lael Brainard argued in a speech Friday.
Federal Home Loan banks should include nonbank lenders, advocates say
The Federal Housing Finance Agency got an earful from housing experts at a listening session intended to aid a comprehensive review of the financing system.
FHFA to launch probe of Federal Home Loan banks this fall
The move comes amid dwindling advances and a growing concern that the Home Loan banks are participating in riskier investments.
Some student loan forgiveness will benefit mortgages
The amounts canceled may not clear away enough debt to help all recipients immediately qualify or improve their ability to repay, but over time the savings may bolster originations and performance.
‘Almost purely opportunity’: Banks prep for historic climate investment
The $369 billion directed toward climate preparedness in the Inflation Reduction Act is expected to reverberate through the economy for years to come and could supercharge private investment in the nation's clean energy sector.
CDFIs are starting to flex their post-pandemic clout
A new bipartisan senate caucus organized around community development financial institutions is just the latest sign that the sector's political influence is reaching new heights.
Inflation Reduction Act heads to Biden’s desk
The House passed the legislative package, which includes an excise tax on stock buybacks, in a 220-207 vote.
Ginnie Mae tweaks some capital requirements
The changes, which appear to be separate from a controversial nonbank proposal that's pending, will reduce red tape for credit unions and housing finance agencies and clarify a calculation for loans eligible for repurchase.
Powell: Economy, banks can handle aggressive rate hikes
As the Federal Reserve implemented its second 0.75% rate hike in two months, the chair said the system is able to withstand any financial stability risks that rising rates might create.
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