DIRS.INFO The most relevant business & tech news

[1/2] U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler testifies before a House Financial Services and General Government Subcommittee hearing on President Biden's budget request for the Securities and Exchange Commission, on Capitol Hill in Washington, U.S., March 29, 2023. Many in the industry have said existing securities regulations are inappropriate and the sector needs fresh rules. Some DeFi platforms may fall under the proposed definition, but others may already be considered exchanges by the existing one, SEC officials said this week. "Make no mistake: many crypto trading platforms already come under the current definition of an exchange," SEC Chair Gary Gensler said in prepared remarks published on Friday. Most crypto trading platforms meet that definition, regardless of whether they call themselves decentralized, Gensler said.

April 14 (Reuters) - Despite a year of aggressive rate increases U.S. central bankers "haven't made much progress" in returning inflation to their 2% target and need to move interest rates higher still, Federal Reserve Governor Christopher Waller said on Friday. Important measures of underlying inflation have "basically moved sideways with no apparent downward movement," Waller said in remarks that continue the Fed's steady discounting of the immediate economic risks posed by recent bank failures. So far, Waller said, he sees both the economy and inflation remaining stronger than he expected. "Economic output and employment are continuing to grow at a solid pace while inflation remains much too high," Waller said, noting that investors should not expect rates to fall any time soon. "Monetary policy will need to remain tight for a substantial period of time, and longer than markets anticipate," he said.

The retail sales data provided at least a hint that a pandemic-era spending boom may be nearing an end, though some economists argued that the historically low unemployment rate and rising wages make a sharp drop in consumption unlikely. In separate comments, Fed Governor Christopher Waller said he'd seen little evidence yet that the economy was under stress, little progress on inflation, and no reason to call off further rate increases. The current inflation rate is more than twice that target, and progress on getting it to move in that direction has been slow. The data showed households expected inflation to accelerate significantly in the year ahead, reversing months of progress towards them viewing inflation as a receding phenomenon. There won't be much more topline economic data before the Fed's May 2-3 meeting.

That's a good reason to pause after one more rate increase, he said, to study how the economy and inflation evolve, and try to limit the damage to growth and jobs. 'HAD TO DOWNSHIFT'The Atlanta Fed chief spoke in detail about how the recent turmoil in banking markets buffeted his monetary policy views. At first, high inflation made him open to a half-percentage-point increase at the March 21-22 Fed meeting. Indeed, Bostic sketched out why he still believes the inflation battle can be won without a recession or even much of a rise in the unemployment rate. People and businesses "are sitting in a financial condition that is abnormal, and abnormal in a way that would drive excess consumption," Bostic said.

REUTERS/Brendan McDermid/File PhotoWASHINGTON, April 12 (Reuters) - Several Federal Reserve policymakers last month considered pausing interest rate increases after the failure of two regional banks and a forecast from Fed staff that banking sector stress would tip the economy into recession. But even they concluded high inflation remained so paramount they pressed on with a rate hike despite the risk. Fed staff assessing the potential fallout of banking sector stress projected a "mild recession" starting later this year, with a recovery in 2024-2025, the minutes showed. "Some participants noted ...they would have considered a 50-basis-point increase ... in the absence of the recent developments in the banking sector," the minutes said. "Participants observed that inflation remained much too high and that the labor market remained too tight; as a result they anticipated that some additional policy firming may be appropriate," the minutes said.

[1/2] The Federal Deposit Insurance Corp (FDIC) logo is seen at the FDIC headquarters in Washington, February 23, 2011. Here is what is known about the assessment and the insurance fund:What is the Deposit Insurance Fund? The law does not define the "assessment base" for the special assessment or which banks will pay it. Who will pay the special assessment? Top officials in Washington have signaled that regulators likely won't make the smaller banks pay for last month's failures this time round either.

Another quarter-point increase is expected, but policymakers have also said they are watching banking data closely for signs of stress or a larger-than-anticipated drop in lending. The minutes "will likely express confidence in the separability of price stability and financial stability." Still, the events on that March 10 weekend added new complexity to a Fed policy debate that had been singlemindedly focused on lowering inflation from levels that last year were more than triple the Fed's 2% target. New consumer price index data released Wednesday is expected to show headline inflation falling, but with a still-high level of underlying or "core" inflation likely to concern Fed policymakers. Reporting by Howard Schneider; Editing by Andrea RicciOur Standards: The Thomson Reuters Trust Principles.

Reuters GraphicsNOTHING 'BROKEN' YETInternational economic officials gathering in Washington this week for the IMF and World Bank spring meetings can take some comfort that pandemic-era risks are continuing to diminish. An aggressive year of central bank rate hikes hasn't yet "broken" any of the economies involved, with the U.S. unemployment rate at 3.5%, near its lowest level since the late 1960s. Still, that terminal rate remains unclear, and the end of synchronized tightening by the Fed, BoE and European Central Bank doesn't mean tight monetary policy is going away. Wages, services and food are driving price growth to the point that the ECB's attention has shifted almost entirely to underlying inflation on fears that rapid price growth is at risk of getting stuck above target. The U.S. central bank is expected to increase its benchmark overnight interest rate by another quarter of a percentage point next month, and signal whether more hikes may be warranted.

The latter could slam global growth back to about 1% this year, effectively a recession on a per-capita GDP basis. 'PERILOUS' RISKSThe IMF's Global Financial Stability Report warned of a "perilous combination of vulnerabilities" in financial markets, saying that some participants had failed to adequately prepare for the impact of interest rate increases. Despite the warnings, the IMF's chief economist, Pierre-Olivier Gourinchas, said inflation is still the bigger problem and that price stability should take precedence over financial stability risks for central banks' monetary policy. Only in the event of a very severe financial crisis should those priorities be reversed, he said in a news conference. She added that the global financial system was also resilient due to reforms enacted after the 2008 financial crisis.

In its latest Global Financial Stability Report, the IMF said global financial stability risks had increased "rapidly" in the six months since its previous assessment when it was already touting hazards as being "significantly skewed" to the downside. The IMF said the bank failures "have been a powerful reminder" of the challenges wrought by tighter monetary policy - and the more stringent financial conditions it generated - and the buildup in vulnerabilities since the global financial crisis more than a decade ago. Problems at U.S. regional banks grew last year, as rapidly rising interest rates slashed the value of some banks' holdings in long-term assets such as home loans and government bonds. Going forward, regional banks could face greater scrutiny with respect to their holdings and funding structures, the IMF cautioned. Even still, authorities should be more prepared to deal with financial instability, the IMF recommended, including by strengthening their bank resolution regimes.

But overall bank credit has been stalled at about $17.5 trillion since January. The response - less lending, tighter credit standards and higher interest on loans - was already taking shape. Hard data on bank lending and credit will come into play, augmenting topline statistics like unemployment and inflation that the Fed is focused on. Reuters GraphicsSENTIMENT WEAKENINGThe survey of large and small banks asks high-level questions - Are lending standards tighter or looser? A Dallas Fed bank conditions survey, conducted in late March after the two bank failures, indicated lending standards in that Fed regional bank's district have kept tightening, with loan demand falling.

Though rates are high now as major central banks battle inflation, "when inflation is brought back under control, advanced economies’ central banks are likely to ease monetary policy and bring real interest rates back toward pre-pandemic levels," IMF analysts said in research released as part of the latest World Economic Outlook. The so-called "natural" rates of interest, an anchor for monetary policy that neither stimulates nor discourages economic activity, "will remain low in advanced economies or decline further in emerging markets," the IMF concluded. But is also means central banks, particularly in developed countries, may again have to rely on bond buying and other strategies once some future downturn prompts them to cut policy interest rates to zero. The IMF said it is possible things have changed, and noted that the impact of developments like the transition to a less carbon-intensive economy remain to be seen. Once rates normalize at prior low levels, a deep enough recession may force central banks "to resort to the same strategies they employed in the decade before the pandemic, such as balance sheet policy and forward guidance."

"It feels like I'm starting a new chapter in my life, and I'm really excited for it," she says. Chi Baik, 26, lives on $27,000 a year as a Ph.D. student in Seattle. Baik knows most people will think $27,000 is "so little money," but says "I feel very grateful that I'm making that much, that I have a home to live in, especially in Seattle. The unhoused population is really large, and that makes me even more grateful for the money that I am making." She decided to pursue her doctorate earlier than she planned as a sort of break from the demanding work of teaching special ed during the pandemic era.

☆ Young people haven't been taught the 'value of work,' says Ronald Reagan's education secretary
▼ + stars: | 2023-04-10 | by ( Grace Dean | ) www.businessinsider.com time to read: +4 min

Young people haven't been taught the "value of work," Bill Bennett told Fox Business. Reagan's education secretary said he was "very concerned" about young people's attitudes towards work. Research from two University of Maryland professors found that the average US work week had overall fallen by more than 30 minutes since before the pandemic. "We haven't talked to them about the value of work, we haven't taught them," he continued. "Are parents talking to their kids about work and why they work and how important it is?

April 7 (Reuters) - The Black unemployment rate hit a record low in March, a milestone for a U.S. labor market that most policymakers and economists expect to begin cooling in the face of higher interest rates, jeopardizing those historic gains. The 0.7 percentage point decline in the African American unemployment rate was the largest since November 2021 and was led by Black women, for whom joblessness dropped to a record low 4.2%. The rate for Black men ticked up to 5.2% from February's record-low-matching 5.1%. Net flows into the labor market and the labor force participation rate are both improving, developments that research shows come along late in the employment cycle. In every U.S. recession since the 1970s the Black unemployment rate has risen by at least 2 percentage points more than for whites, and often by far more than that.

[1/2] A "now hiring" sign is displayed outside Taylor Party and Equipment Rentals in Somerville, Massachusetts, U.S., September 1, 2022. Economists polled by Reuters expect a gain of 239,000 jobs in March, with hourly wages rising at a 4.3% annual rate and the unemployment rate remaining at 3.6%, a level seen less than 20% of the time since World War Two. Unemployment is still at a very low level," Boston Fed President Susan Collins said in an interview with Reuters last week. How "slack" in the labor market links to lower inflation may depend on where job growth slows, and over what timeline. "The services sector, in particular, has contributed substantially to recent inflation, reflecting ongoing imbalances in labor markets where supply remains impaired and demand remains robust," they wrote.

☆ Warren Buffett's Berkshire Hathaway faces a brutal mix of economic headwinds. It will capitalize on the chaos, 8 experts say.
▼ + stars: | 2023-04-06 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +10 min

Berkshire Hathaway faces high inflation, rising rates, and a potential recession and credit crunch. Warren Buffett's company will weather the storm and scoop up the bargains that emerge, experts say. Experts say Berkshire's ample cash reserves, strong brands, and prudent management will enable it to comfortably navigate a harsh economic environment. "Shareholders who plan on holding Berkshire for years into the future should hope for a near-term bear market in stocks. Brian Gongol, longtime Buffett follower and Berkshire shareholder:"It's better to be in Berkshire's shoes during challenging times than during a boom.

There are uncertainties," Boston Fed President Susan Collins said in an interview with Bloomberg Television on Friday. Richmond Fed President Thomas Barkin struck a similar note last week. "When you raise rates there's always the risk of the economy softening faster than it might have otherwise. "People will continue to spend as long as they get paid," said Yelena Shulyatyeva, senior U.S. economist with BNP Paribas. It will, but only at the point at which they stop getting paid" because of a slowing economy and rising unemployment.

March 30 (Reuters) - Wells Fargo & Co (WFC.N) will pay fines of about $97.8 million for inadequate oversight of its compliance risks, enabling the apparent violation of U.S. sanctions against Iran, Syria and Sudan, federal authorities said on Thursday. The Fed fined Wells Fargo $67.8 million, while OFAC fined the bank $30 million for inadequate oversight of its compliance risks from 2010 to 2015. “Wells Fargo is pleased to resolve this legacy matter involving conduct that ended in 2015, which we voluntarily self-reported and fully cooperated with OFAC and the Federal Reserve Board to address," a Wells Fargo spokesperson said in a statement. In a release, OFAC said that Wells Fargo and its predecessor, Wachovia Bank, provided a European bank with software beginning in 2008 that allowed the firm to process 124 transactions involving sanctioned individuals or jurisdictions. In December, the U.S. Consumer Financial Protection Bureau hit Wells Fargo with the watchdog's largest ever civil penalty as part of a $3.7 billion agreement to settle charges over widespread mismanagement of car loans, mortgages and bank accounts.

WASHINGTON, March 29 (Reuters) - Almost all of the remaining shortfall in U.S. labor force participation is the result of demographic and other trends that predate the COVID-19 pandemic, according to new research that suggests little chance that growth in the number of workers will help ease a tight American job market. After accounting for factors such as population aging and changes in education that influence people's willingness to work, the study showed that U.S. labor force participation was only about 0.3 percentage points short of where it would have been without the pandemic - equivalent to around 700,000 "missing" workers. Still, the figures suggest a winnowing down of COVID-related impacts on the labor force, a significant conclusion for U.S. policymakers hoping labor force participation rates could rebound to pre-pandemic levels. As of February, about 62.5% of U.S. adults were either working or looking for work, 0.8 percentage points below where it was in February of 2020, according to government figures. It has been in a steady decline for nearly a quarter century after peaking at 67.3% in April 2000.

REUTERS/Kevin LamarqueMarch 29 (Reuters) - The scope of blame for Silicon Valley Bank's failure stretches across bank executives, Federal Reserve supervisors and other regulators, the banking system's top cop on Wednesday told U.S. lawmakers demanding answers for the lender's swift collapse. "I think that any time you have a bank failure like this, bank management clearly failed, supervisors failed and our regulatory system failed," Michael Barr, Fed Vice Chair for Supervision, told Congress. 'SOME REAL FLAWS'Barr told the House Financial Services Committee that he first became aware of stress at Silicon Valley Bank on the afternoon of March 9, but that the bank reported to supervisors that morning that deposits were stable. The Fed was in discussions with Silicon Valley Bank the day before its collapse to move pledgable collateral to the discount window, a key facility long associated with providing emergency loans to banks, Barr said on Wednesday. "(Fed) staff were working with Silicon Valley Bank basically all afternoon and evening and through the morning the next day to pledge as much collateral as humanly possible to the discount (window) on Friday," Barr said.

March 29 (Reuters) - The Federal Reserve was in discussions with Silicon Valley Bank the day before its collapse to move pledgable collateral to the discount window, a key facility long associated with providing emergency loans to banks, the Fed's head of banking supervision told a Congressional committee on Wednesday. Fed Vice Chairman for Supervision Michael Barr said he first became aware of stress at Silicon Valley Bank on the afternoon of March 9, but that the bank reported to supervisors that morning that deposits were stable. "(Fed) staff were working with Silicon Valley Bank basically all afternoon and evening and through the morning the next day to pledge as much collateral as humanly possible to the discount (window) on Friday," Barr said to the House Financial Services Committee. Barr told the Senate Banking Committee he first became aware of the interest rate risk issues at SVB in mid-February, while Fed supervisors had been raising issues with the bank directly in months prior to that. Some Democrats have also argued a 2018 bank deregulation law is to blame.

"I think that any time you have a bank failure like this, bank management clearly failed, supervisors failed and our regulatory system failed," Michael Barr, Fed Vice Chair for Supervision, told Congress. REPORTS DUE MAY 1Both the Fed and FDIC are is expected to produce reports on the failure of Silicon Valley Bank by May 1. Barr told the House Financial Services Committee that he first became aware of stress at Silicon Valley Bank on the afternoon of March 9, but that the bank reported to supervisors that morning that deposits were stable. Gruenberg of the FDIC told lawmakers he also became aware of SVB's stress that Thursday evening. "(Fed) staff were working with Silicon Valley Bank basically all afternoon and evening and through the morning the next day to pledge as much collateral as humanly possible to the discount (window) on Friday," Barr said.

WASHINGTON, March 28 (Reuters) - Lawmakers are expected to put top U.S. bank regulators on the defensive over the unexpected failures of regional lenders Silicon Valley Bank and Signature Bank when they testify before Congress on Tuesday. Regulators have vowed to review their rules and procedures after the twin failures while insisting the overall system remains sound. Tuesday's hearing at the Senate Banking Committee will give lawmakers the chance to press watchdogs on what went wrong on their watch, and push preferred policy prescriptions. They just didn't," said Sen. Tim Scott of South Carolina, the top Republican on the Senate Banking Committee, at a banking industry conference last week. Some Democrats, including major bank critic Senator Elizabeth Warren of Massachusetts, have also argued a 2018 bank deregulation law is to blame.

This valuation comes after a rich global history showcasing wars fought over salt, trade routes built for commodities, taxes levied against the mineral and even cities named in sodium's legacy. "You could not have an international economy if you didn't have salt," Mark Kurlansky, author of "Salt: A World History," told CNBC. "We're seeing that the majority is deicing salt," Seth Goldstein, equities analyst with Morningstar, told CNBC. However, if too much salt permeates our environment, the effects can be dangerous, according to the Environmental Protection Agency. Runoff from deicing salts that keep our roads safe in wintry weather is the most obvious way that salt enters the environment.

Search resuls for: "University of Maryland"

25 mentions found