Articles Tagged with ''Federal Reserve''

Fed fails one bank in second round of stress tests

Two others met with conditional approval
During the second round of the 2018 annual stress tests, the Federal Reserve objected to one bank’s capital plan but passed the other 34 largest banks. In addition to failing one bank, the Fed also gave conditional approval to Goldman Sachs and Morgan Stanley after recent tax reform laws reduced their capital.
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Fed looks to eliminate pass/fail for bank stress tests

To take volatility out of financial markets
The Federal Reserve is looking to take volatility out of the financial markets by changing the rules of stress tests on big banks, and eliminating the pass or fail grades. The Fed would replace the pass or fail grade with simply giving banks a capital ratio that the lender must meet during the following year.
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Expert: Fed will cut interest rates in 2020

But expect 4 more rate hikes before then
Most experts are expecting a total of four rate hikes in 2018, followed by two or three more in 2019. In 2020, however, that could all change. One expert predicted that not only could the economy slow, but the Fed will even cut interest rates in 2020.
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Fed raises rates for second time in 2018

Here’s what committee projects for remainder of year
The Federal Reserve voted to raise interest rates for the second time in 2018. The FOMC also released its dot-plot chart, showing a glimpse at how many more rate hikes could be expected for the rest of the year and beyond.
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U.S. inflation rises to six-year high

Wage gains remained moderate despite an 18-year low in unemployment
The Federal Reserve’s outlook for gradual interest-rate hikes were reinforced in May, as U.S. inflation accelerated to the fastest pace in more than six years, although wage gains remained moderate despite an 18-year low in unemployment.
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Could U.S., North Korea summit sway Fed rate hike decision?

Investors unimpressed by summit results
With investors watching under a microscope, the Federal Reserve is set to announce its decision on a June increase to the federal funds rate on Wednesday at the conclusion of its meeting. While economists still expect the Fed to raise rates, what Fed members will say about their monetary policy and outlook for the remainder of 2018 is yet to be seen.
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Fed unveils proposal to soften Volcker rule

Requests comment from interested parties
The Federal Reserve unveiled its plan Wednesday to soften regulations within the Volcker rule, which imposes limits on large banks in proprietary investment activities. The Federal Reserve explained it is seeking to reducing banks’ compliance costs while maintaining the rule’s effectiveness and consistency.
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Fed changes tune on raising interest rates this year

Minutes reveal more dovish approach
The Federal Reserve has been forecasting an average two to four interest rate hikes in 2018, however the minutes from its latest meeting reveal a more dovish approach. As the Fed raises concerns over recent trade tariffs, the chances of there being four rate hikes in 2018 falls.
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