Tag: Federal Reserve

Federal Reserve

Fed’s Powell Warns Against ‘False Starts’

Federal Reserve Chair Jay Powell Thursday explained more about how the central bank is remaking itself to keep intact the structure of an enfeebled economy and he joined the chorus of voices warning against returning to work too soon. “Many of the programs that we’re undertaking to support the flow of credit rely on emergency […]

Fed Details Main St, Other Lending Facilities

The following is the Federal Reserve announcement of details of its new Main Street lending facilities and other programs, released Thursday morning: The Federal Reserve on Thursday took additional actions to provide up to $2.3 trillion in loans to support the economy. This funding will assist households and employers of all sizes and bolster the […]

Fed’s Rosengren: Distress Ahead for the Heavily Leveraged

Boston Federal Reserve Bank President Eric Rosengren opposed the pre-crisis rate cuts and now he is being proven right, the pandemic’s effects will be worse than otherwise because the Fed had less ammunition while some individuals and firms accumulated too much low-interest debt, he said Wednesday. “If this continues for some time and there’s some […]

Fed’s Rosengren: Unemployment to Rise “Dramatically”

The Federal Reserve is working to limit economic fallout from the pandemic and promote recovery, but unemployment is surging, and fiscal policy is “crucial,” Eric Rosengren, president of the Federal Reserve Bank of Boston, said Wednesday. “The Federal Reserve is working to limit the financial and economic distress – to take actions that help avoid […]

Difficult Trade Offs, Unprecedented QE, Accelerating Infection

Americans who in even greater numbers are staying at home Monday were suddenly being asked to choose between two virus scenarios; one espoused by medical experts, the other by people newly afraid the economy is being irreversibly crippled, President Trump among them. Which view leads to the most prudent outcome, either an early relaxation of […]

Central Banks Coordinate on Further US Dollar Liquidity

The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank are today announcing a coordinated action to further enhance the provision of liquidity via the standing US dollar liquidity swap line arrangements. To improve the swap lines’ effectiveness in providing US […]

Central Banks Enhance Liquidity Swap Lines

The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank have announced a coordinated action to enhance the provision of liquidity via the standing US dollar liquidity swap line arrangements. These central banks have agreed to lower the pricing on the […]

Fed’s Powell: “Had to do More”; Trump Happy

White House Watch takes a look at the latest US response to the Covid-19 crisis. The economic and financial response to the virus crisis took a giant step Sunday, a 100bp Federal Reserve rate cut to near zero, while the health care response was considerably less impressive, with disease testing still far short of what’s […]

Federal Reserve Terminates BofA FX Action

The US Federal Reserve has announced it is terminating its 2015 enforcement action against Bank of America for unsound practices in its FX business that led to the bank paying a $205 million fine. The termination, which took place on November 22 but was only announced December 3, ends a saga that started following a […]

FX Volumes Dip from April 2018 Highs

The latest round of FX turnover data from a group of the world’s FX Committees show that volumes dipped slightly in October 2018 compared to April last year when they hit a new high mark. Average daily reported UK FX turnover was $2.6 trillion per day in October 2018. Although this is the third largest turnover figure on record, it represents a 4% decrease from the record high of $2.7 trillion reported in April 2018. Turnover by instrument was mixed in the UK. Spot increased for the third successive reporting period, gaining 3% compared to April 2018 to reach $775 billion traded per day. This represents a 14.5% year-on-year increase in volume.