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REUTERS/Elizabeth Frantz/File PhotoNov 14 (Reuters) - The Federal Reserve will likely soon slow its interest rates hikes, Fed Vice Chair Lael Brainard signaled on Monday, as the U.S. central bank tries to figure out how high borrowing costs need to go and how long they should stay there to bring down inflation. Fed Chair Jerome Powell has signaled that the central bank's next move may be smaller to give time to judge how the rapid rate hikes so far this year are affecting the economy. But he also signaled the policy rate may next year peak at a rate higher than the 4.6% level that most policymakers had expected in September. Currently the U.S. unemployment rate is at 3.7%, below the 4% level that most policymakers believe reflects a long-run sustainable rate. Recent labor market data suggests "cooling," Brainard said, and lessening wage pressures.

☆ Fed may cut size of rate increases, but is not 'softening' inflation fight, Waller says
▼ + stars: | 2022-11-13 | by ( ) www.reuters.com time to read: +2 min

WASHINGTON, Nov 13 (Reuters) - The U.S. Federal Reserve may consider slowing the pace of rate increases at its next meeting but that should not be seen as a "softening" in its commitment to lower inflation, Federal Reserve Gov. Until we get inflation down, that endpoint is still a ways out there." The 7.7% annualized increase in inflation recorded in October is still "enormous," Waller said, noting that even if the Fed scaled back from three quarter point increases to a half point increase at its next meeting, "you're still going up." The Fed has raised rates a total of 3.75 percentage points this year beginning in March, including four three quarter point increases, a rapid shift in monetary policy aimed to cool the worst surge of inflation since the 1980s. Analysts and economists have warned that the monetary tightening will further the risk of recession, impacting employment.

☆ U.S. senator urges legislation after FTX collapse
▼ + stars: | 2022-11-11 | by ( David Shepardson | ) www.reuters.com time to read: +2 min

WASHINGTON, Nov 10 (Reuters) - U.S. Senate Agriculture Committee chair Debbie Stabenow said on Thursday the U.S. Congress needs to pass legislation in the wake of the collapse of cryptocurrency exchange FTX. The Committee, remains committed to advancing the Digital Commodities Consumer Protection Act to bring necessary safeguards to the digital commodities market," Stabenow said. She added that she is working with the panel's top Republican John Boozman, financial regulators and others "to finalize and prepare this legislation for a committee vote." Earlier on Thursday Senate Banking Committee Chair Sherrod Brown said it is critical that U.S. financial agencies investigate what led to the FTX collapse. "Until legislation is enacted, I encourage all financial regulators to use their current authorities to the fullest extent to regulate and prosecute misconduct in these markets," Stabenow said.

☆ Washington turns up heat on crypto 'darling' Sam Bankman-Fried following FTX bankruptcy
▼ + stars: | 2022-11-11 | by ( Brian Schwartz | ) www.cnbc.com time to read: +5 min

Sam Bankman-Fried, founder and chief executive officer of FTX Cryptocurrency Derivatives Exchange, during a Senate Agriculture, Nutrition and Forestry Committee hearing in Washington, D.C., on Wednesday, Feb. 9, 2022. As FTX teeters on the brink of collapse, former CEO Sam Bankman-Fried has fallen out of favor as the industry "darling" in Washington and drawn scrutiny from regulators and lawmakers in both parties. Bankman-Fried stepped down as CEO of the cryptocurrency exchange he founded, and FTX filed for Chapter 11 bankruptcy protection, the company announced Friday. A spokesman for FTX and Sam Bankman-fried didn't return a request for comment. White House Press Secretary Karine Jean-Pierre told reporters Thursday the near collapse of FTX proves more regulation is needed.

☆ Key U.S. senator urges probe into FTX collapse
▼ + stars: | 2022-11-10 | by ( ) www.reuters.com time to read: 1 min

WASHINGTON, Nov 10 (Reuters) - U.S. Senate Banking Committee Chair Sherrod Brown said on Thursday it is critical that U.S. financial agencies investigate what led to cryptocurrency exchange FTX’s collapse and he pledged to take steps to ensure the stability of American markets. "It is crucial that our financial watchdogs look into what led to FTX’s collapse so we can fully understand the misconduct and abuses that took place," the Democratic senator said. "I’m committed to finding the best path forward to protect consumers and the stability of the U.S. markets and banking system." Reporting by David Shepardson Editing by Chris ReeseOur Standards: The Thomson Reuters Trust Principles.

☆ Crypto is in chaos as FTX files for bankruptcy
▼ + stars: | 2022-11-10 | by ( Allison Morrow | ) edition.cnn.com time to read: +7 min

By Friday morning, FTX said Bankman-Fried had resigned as CEO and that the firm was filing for bankruptcy. Failures are not uncommon in the murky, largely unregulated world of crypto, but FTX is not your average crypto startup. Namely, that the bulk of its assets are held in FTT, a digital token minted by Alameda’s sister firm, FTX. On Sunday, the CEO of Binance, FTX’s much larger rival, said his company was liquidating $580 million worth of FTX holdings. After a chaotic week, FTX filed for bankruptcy.

☆ Premarket stocks: What midterm elections could mean for the US economy
▼ + stars: | 2022-11-08 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

New York CNN Business —Tuesday’s midterm elections come at a time of economic vulnerability for the United States. Americans are feeling the pain of rising interest rates and are facing a winter filled with geopolitical tension. If Republicans get the House, tax hikes are dead in the water,” said David Wagner, a portfolio manager with Aptus Capital Advisors. Biden’s stock market record is the second worst since Jimmy CarterThe stock market under President Biden started with a boom, but as we head into midterm elections, markets are going bust, reports my colleague Matt Egan. By contrast, Biden’s two immediate predecessors headed into their first midterm election with stock markets surging.

The local unemployment rate is already nearly a percentage point above the U.S. average of 3.5%. "It's very premature in my view to think about or be talking about pausing our rate hikes. The target federal funds rate is now in a range of between 3.75% and 4%, the highest since early 2008. In the 1970s and 1980s, Fed Chair Paul Volcker's attack on inflation sparked a recession that pushed the unemployment rate above 10%, then a post-World War II high. "I do worry about how rates affect the economy," Bostic said at the forum.

☆ Senate Republicans want the SEC to explain why staff are quitting
▼ + stars: | 2022-10-30 | by ( Nell Mackenzie | ) www.reuters.com time to read: +2 min

Oct 30 (Reuters) - Senate Republicans want the SEC to explain why staff are leaving the nation's corporate watchdog at the highest rate in 10 years amid a flurry of proposed rules, according to a letter seen by Reuters on Sunday. Republicans want Gensler to explain how he will address the concerns in the report and also to allow more time for industry feedback on the new rules. Employees interviewed for the internal watchdog report said they received little feedback on rules they had written, according to the report. The SEC is losing employees at its highest pace in 10 years, said the Inspector General's report. Senate Republicans Thom Tillis from North Carolina, Mike Crapo from Idaho, Tim Scott from South Carolina, Michael Rounds from South Dakota, Bill Hagerty from Tennessee and Steve Daines from Montana signed the letter.

☆ First on CNN: Senate Democrat warns Fed it’s ‘foolish’ to keep lifting interest rates
▼ + stars: | 2022-10-27 | by ( Matt Egan | ) edition.cnn.com time to read: +4 min

But the concern is the Fed is doing too much too soon,” Hickenlooper wrote in a letter on Thursday to Fed Chairman Jerome Powell. In a bid to get inflation under control, the Fed has raised interest rates more rapidly than at any point since the early 1980s under legendary Fed chairman Paul Volcker. “I write to urge the Federal Reserve to pause and seriously consider the negative consequences of again raising interest rates,” Hickenlooper wrote, adding that families have been stung by surging borrowing costs for homes and cars. “Will raising interest rates lead to more oil, lower prices of oil, more food, lower prices of food? Former President Donald Trump repeatedly slammed Powell — his handpicked Fed chairman — for raising interest rates and shrinking the Fed’s balance sheet.

☆ Gold subdued as dollar ticks higher; investors eye Fed outlook
▼ + stars: | 2022-10-26 | by ( ) www.cnbc.com time to read: +1 min

Gold prices were flat on Wednesday on a firmer dollar, although the bullion was anchored in a narrow range with investors awaiting further guidance on U.S. Federal Reserve 's policy tightening. Spot gold was flat at $1,653.06 per ounce, as of 0118 GMT, while U.S. gold futures were down 0.2% at $1,654.20. The Fed is widely expected to deliver a fourth straight supersized interest-rate hike when they meet in November. Top gold consumer, China's net gold imports via Hong Kong halved from the previous month in September, data showed on Tuesday. Spot silver fell 0.1% to $19.32 per ounce, platinum dipped 0.1% to $914.04 and palladium rose 0.9% to $1,940.55.

☆ Top Senate Democrat warns the Fed against causing mass job losses
▼ + stars: | 2022-10-26 | by ( Matt Egan | ) edition.cnn.com time to read: +3 min

“For working Americans who already feel the crush of inflation, job losses will make it much worse. The comments from the Ohio Democrat, who publicly supported Powell’s renomination as Fed chair, underscore the intense pressure facing the Fed ahead of next week’s decision on interest rates. Bank of America estimates the US economy will start losing 175,000 jobs a month early next year due to the Fed’s rapid interest rate hikes. California Rep. Ro Khanna slammed the central bank for “failed policy” that led to high inflation and expressed concern the Fed will now overcompensate. Massachusetts Democratic Sen. Elizabeth Warren has described the Fed’s rate hikes as “extreme” and set the stage for blaming the central bank for a downturn.

☆ Fed's Powell, on eve of next rate hike, urged to protect jobs
▼ + stars: | 2022-10-25 | by ( ) www.reuters.com time to read: +3 min

[1/2] Federal Reserve Board Chairman Jerome Powell hosts an event on "Fed Listens: Transitioning to the Post-pandemic Economy" at the Federal Reserve in Washington, U.S., September 23, 2022. REUTERS/Kevin LamarqueOct 25 (Reuters) - U.S. Senate Banking Committee Chair Sherrod Brown on Tuesday urged Federal Reserve Chair Jerome Powell to be careful about tightening monetary policy so much that millions of Americans already suffering from high inflation also lose their jobs. Fed policymakers are widely expected to deliver a fourth straight supersized interest-rate hike when they meet next week, bringing the policy rate to 3.75%-4% as part of what has been the sharpest set of rate increases in about 40 years. But he has also argued that beating inflation - running at more than three times the Fed's 2% target - is the only way to ensure long-term labor market strength. Fed policymakers say the research shows inflation is being driven both by sky-high demand and supply constraints, and that regardless of the cause, they are committed to doing what they can to bring it down.

☆ Here's what the Wells Fargo cross-selling scandal means for the bank's growth
▼ + stars: | 2022-10-19 | by ( Carlos Waters | In Carloswaters | ) www.cnbc.com time to read: +2 min

Wells Fargo is one of the oldest and most powerful banks in the United States. Regulators for banking, consumer protection, trading, and workplace safety continue to keep a close watch on Wells Fargo. In addition to fines, Wells Fargo has faced a cap on its assets, issued by the Federal Reserve in 2018. The issues at Wells Fargo are still unfolding. Watch the video to see how the Wells Fargo scandal positions the bank in 2022.

Register now for FREE unlimited access to Reuters.com Register"There is clarity that monetary policy will be restrictive for some time, until there is confidence inflation comes down. The (Federal Open Market) Committee has said policy rates will increase further," Brainard said. But "we also will be learning as we go and that assessment will reflect incoming data and also risks domestically and globally ... The Fed has raised rates rapidly this year, using three-quarter point increments of late to bring the target federal funds rate to a range between 3% and 3.25%. "We're headed for this four and a half percent-ish federal funds rate by March," Evans said, with little time left for data to shift officials' views.

☆ Republican Toomey blasts Biden's 'irresponsible' use of Cold War-era defense law
▼ + stars: | 2022-09-26 | by ( Andrea Shalal | ) www.reuters.com time to read: +2 min

Senator Pat Toomey speaks in the Dirksen Senate Office Building in Washington, D.C.,U.S., May 10, 2022. Tom Williams/Pool via REUTERSWASHINGTON, Sept 26 (Reuters) - Republican Senator Pat Toomey on Monday blasted President Joe Biden for what he called the increasing and "irresponsible" use of a Cold War-era defense law to boost production of baby food, solar panel components and other non-defense items. Toomey, the top Republican on the Senate Banking Committee, told Biden that using the Defense Production Act in this way disrupted supply chains and violated the intent of the law to make goods available in actual national security emergencies. The 1950 law gives the Pentagon wide powers to procure equipment necessary for national defense. Toomey asked Biden to answer a series of detailed questions about the administration's reasons for invoking the law by Oct. 11.

☆ Goldman Sachs' bankers get their marching orders as Wall Street starts to purge under-performers
▼ + stars: | 2022-09-26 | by ( Aaron Weinman | ) www.businessinsider.com time to read: +5 min

The cuts come after Goldman's investment bank logged a 41% dip in year-over-year revenues in July. Goldman Sachs has started wielding the axe at its investment bank. The job cuts are likely to echo across Wall Street, particularly within investment-banking divisions like capital markets and M&A advisory, bankers told me. US lawmakers pressed bank chief executives on reports of fraud on the Zelle payments network. Wall Street is completely delusional about the pain that is coming for the stock market.

☆ Senior Republican chastises banks for social agenda that 'harms America'
▼ + stars: | 2022-09-22 | by ( Pete Schroeder | ) www.reuters.com time to read: +2 min

Senator Pat Toomey speaks in the Dirksen Senate Office Building in Washington, D.C.,U.S., May 10, 2022. Tom Williams/Pool via REUTERS/File Photo/File PhotoWASHINGTON, Sept 22 (Reuters) - The heads of the nation's largest banks faced pointed criticism from a top Republican Thursday, as he chastised firms for "embracing a liberal ESG agenda that harms America." Senator Pat Toomey, the senior Republican on the Senate Banking Committee, urged banks to "cease and desist" from weighing in on social and cultural issues as chief executives appeared before Congress for an oversight hearing. They were joined by the CEOs of the country's largest regional lenders, US Bancorp (USB.N), PNC Financial (PNC.N) and Truist (TFC.N). read moreRegister now for FREE unlimited access to Reuters.com RegisterReporting by Pete Schroeder Editing by Nick ZieminskiOur Standards: The Thomson Reuters Trust Principles.

☆ Sen. Pat Toomey: Big banks should 'stay in their lane' on social issues
▼ + stars: | 2022-09-22 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailSen. Pat Toomey: Big banks should 'stay in their lane' on social issuesSen. Pat Toomey, the lead Republican on the Senate Banking Committee, joins CNBC's 'Squawk Box' to discuss what to expect from the Senate's planned hearing with the heads of America’s biggest banks.

☆ U.S. senators want secondary sanctions on Russian oil
▼ + stars: | 2022-09-20 | by ( Patricia Zengerle | ) www.reuters.com time to read: +3 min

REUTERS/Dado Ruvic/Illustration/File PhotoWASHINGTON, Sept 20 (Reuters) - Democratic and Republican senators urged U.S. President Joe Biden's administration on Tuesday to impose secondary sanctions on international banks to strengthen a price cap G7 countries plan to impose on Russian oil over Moscow's invasion of Ukraine. The Biden administration has been reluctant to impose secondary sanctions over concerns that they could complicate relations with importers of Russia oil like China and India. The Group of Seven announced the price cap plan this month to limit Russia's lucrative oil export revenue in the wake of the invasion. "And secondly, by keeping Russian oil in the market at lower prices, it will reduce the potential for price spikes in the market." Also at the hearing, Democratic Senator Kyrsten Sinema asked Rosenberg what Washington can do to address the blending of Russian oil by the country's producers with crude from other nations to circumvent sanctions.

☆ Big U.S. bank CEOs to be grilled by Congress on consumer, social issues
▼ + stars: | 2022-09-19 | by ( Pete Schroeder | ) www.reuters.com time to read: +5 min

The line-up includes the CEOs of the four largest U.S. banks: JPMorgan's Jamie Dimon, Bank of America's Brian Moynihan, Citi's Jane Fraser and Wells Fargo's Charles Scharf. They will be joined by USBancorp (USB.N) CEO Andy Cecere, PNC Financial (PNC.N) CEO William Demchak, and Truist Financial CEO William Rogers, who run the country's largest regional lenders. That's a message the banks' executives, lobbyists, and trade groups have conveyed during a marathon of private meetings with key lawmakers over the past few weeks, the sources said. But bank executives are also wary of growing criticism from Republicans, traditionally allies who have pushed back against heavy regulation, over what they see as Wall Street's increasingly liberal leanings on environment and social issues. While executives faced some critical questions from Republicans on such issues last year, the pressure will be greater this time, said analysts.

☆ Another big rate hike is coming. Lather. Rinse. Repeat
▼ + stars: | 2022-09-18 | by ( Paul R. La Monica | Cnn Business | ) edition.cnn.com time to read: +6 min

As such, experts' forecasts for the Fed's key short-term rate after the November meeting range from 3.5% to 4%. In other words, the Fed's rate hikes could ultimately lead to the economy cooling off more than the central bank would like. Too many big rate hikes risk "sending the economy into a mild recession," Chubb said. What's more, other central banks, mainly the European Central Bank, are likely to step up the pace and size of rate increases as well. "Major central banks still have work to do on inflation, including the Fed and the ECB.

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