Bess Adler/Bloomberg Key insight: Federal Reserve Gov. Christopher Waller’s comments suggest the barriers to nonbank firms acquiring a “skinny” Fed master account — a concept Waller himself introduced late last month — may be higher than were previously assumed. Expert Quote: “There’s a misunderstanding out there that somehow just a fintech can show up and […]
Waller hedges on nonbank access to ‘skinny’ master account Read More »
Al Drago/Bloomberg Key insight: Federal Reserve Governor Michael Barr said the short-term impact of AI-related job cuts will likely lead to long-term economic gains, as new technology may create new jobs with higher pay. He also said the central bank is working to bring inflation back to its 2% target but noted there is “some
Fed Gov. Barr says AI may cause ‘dislocations’ in labor force Read More »
Kent Nishimura/Bloomberg Key Insight: The Fed says its revised supervisory framework reflects that large banks are well capitalized, have sound liquidity positions and good asset quality Supporting Data: Roughly 47% of large financial institutions were considered not “well managed” under the former framework. Expert Quote: “Bank ratings should reflect overall safety and soundness, not just
Fed says banks are well managed even with a deficient rating Read More »
The US Treasury indicated it’s not looking to boost sales of notes and bonds until well into next year, in a decision that will see the government increasingly rely on bills to fund the budget deficit. In its so-called quarterly refunding statement Wednesday, the department said it anticipated keeping auction sizes unchanged for nominal notes, bonds and floating-rate
US to keep note, bond sales steady for at least several quarters Read More »
The odds that the Federal Reserve will cut benchmark interest rates again in December are still high — but not as high as they were before last week’s cut. As of Monday, according to the CME Group’s FedWatch tool, 70% of interest rate traders are anticipating another 25-basis-point pullback after the Fed’s final meeting of
Another Fed rate cut to finish 2025? Not so fast Read More »
Ting Shen/Bloomberg Key Insight: Fed Gov. Lisa Cook highlighted her commitment to getting inflation to 2% and said she will “act forcefully” if signs emerge that point to cost pressures increasing. Expert quote: “Looking ahead, policy is not on a predetermined path.” — Fed Gov. Lisa Cook. What’s at stake: Cook’s remarks come amid a growing rift
Fed’s Cook strikes hawkish tone in rare appearance Read More »
The unsung hero of the housing market in 2025 has been the improvement in mortgage spreads, because without the spreads improving as much as they have, mortgage rates would not have gotten near 6% this year. I forecast that mortgage spreads should improve by 0.27%-0.41% this year, from a 2.54% average in 2024, giving mortgage
Mortgage spreads hit lowest level in years, keeping rates near 6% Read More »
Three Federal Reserve officials said they did not support the US central bank’s decision to cut interest rates this week, citing inflation that remains too high. Dallas Fed President Lorie Logan and her Cleveland counterpart, Beth Hammack, said Friday they would have preferred to hold rates steady. Both were speaking at a conference in Dallas,
Fed ‘chorus’ comes out against latest rate cut, citing inflation Read More »
The Federal Reserve cut the Fed funds rate today but mortgage rates shot higher. This was not shocking to me as yesterday I wrote about whether Powell would ruin the year’s lowest mortgage rates with his remarks at the Fed press event — and that’s exactly what happened. When mortgage rates are near 6% and
Powell sends mortgage rates higher as he questions December cut Read More »
The Federal Reserve delivered a 25-basis-point cut to its benchmark interest rate on Wednesday, setting the target range at 3.75% to 4%. The move, which brings the federal funds rate to its lowest level in three years, comes amid a softening labor market and inflation pressures. Monetary policy watchers expect another cut in December, which
Fed rate cut could lower mortgage rates further Read More »