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Since joining the Fed last year, Cook said she's worked with her colleagues to combat high inflation and if she is confirmed for more time at the Fed, Cook said that's how she will continue to work. Cook attended the hearing with Philip Jefferson, a Fed governor nominated to become vice chair, and Adriana Kugler, the U.S. executive director to the World Bank who has been nominated to fill a governor slot. Kugler is prospectively the first-ever Latina to serve on the Fed in its just over a century long history. "I spent my childhood in Colombia, where in the late 1970s and early 80s inflation was very high, hovering about 25%. The three nominees did not offer any guidance about what they think the Fed should do with monetary policy beyond affirming the importance of bringing inflation back to the 2% target.
Persons: Philip Jefferson, Lisa Cook, Adriana Kugler, Read, Cook, she's, Vance, Kugler, Jefferson, Tim Scott, Michael S, Andrea Ricci Organizations: Federal, Federal Reserve, Capitol, U.S, Banking Committee, Fed, World Bank, Republican, South Carolina Republican, Thomson Locations: Washington , U.S, Ohio, Colombia
[1/2] The U.S. Capitol dome is seen from the Russell Senate Office Building on Capitol Hill in Washington, U.S., April 19, 2023. Despite the consensus on lowering inflation, the Fed is also reaching a point where opinions about the need for and timing of additional interest rate increases may start to diverge. In large part that job has fallen to the Fed, but it is a central bank of Biden's making. If the current crop of nominees is approved five of seven board members would be Biden appointees. The Fed under Powell has raised interest rates faster than at any time since former Fed Chair Paul Volcker's inflation fights of the 1970s and 1980s.
Persons: Sarah Silbiger WASHINGTON, Jerome Powell, haven't, Democrat Joe Biden, Donald Trump, Philip Jefferson, Lisa Cook, Adriana Kugler, Powell, Biden, Preston Mui, Mui, Paul, Howard Schneider, Jason Lange, Dan Burns, Andrea Ricci Organizations: U.S, Russell Senate, REUTERS, . Federal, Democrat, Republican, Federal, of Governors, World Bank, Fed, Financial, America, Reuters, Biden, Trump, Black Americans, Thomson Locations: Russell, Washington , U.S, U.S, Biden's
Inflation has "started to abate" but the Fed will remain focused on returning it to the 2% target, Fed governor and vice chair nominee Philip Jefferson said in testimony prepared for his confirmation hearing on Wednesday before the Senate Banking Committee. "The economy faces multiple challenges, including inflation, banking-sector stress, and geopolitical instability. "Inflation has started to abate, and I remain focused on returning it to our 2% target." As a group, Fed policymakers last week signaled two more interest-rate hikes are likely by the end of the year. The Senate Banking committee on Tuesday also released prepared remarks from Fed Board nominee Adriana Kugler, who said returning inflation to the central bank's 2% target is key to setting a strong foundation for the U.S. economy.
Persons: Philip Jefferson, Jefferson, Lisa Cook, ” Cook, Cook, Adriana Kugler, " Kugler, Kugler, Bob Menendez, Menendez, Howard Schneider, Michael S, Dan Burns, Ann Saphir, Matthew Lewis Organizations: Reserve, Committee, Federal, World Bank, Fed, of Governors, Senate, Derby, Thomson Locations: Washington, U.S, New York, Berkeley , California
Charlotte Hornets owner Michael Jordan responds to a question during a news conference at Spectrum Center in Charlotte, North Carolina, Oct. 28, 2014. Basketball legend Michael Jordan has agreed to sell his majority stake in the National Basketball Association's Charlotte Hornets to wealthy investors Gabe Plotkin and Rick Schnall, a representative for Jordan confirmed Friday. Jordan took a majority stake in the Hornets in 2010 for $275 million. Under the ownership of the six-time NBA champion Jordan, the Hornets have struggled, only making the playoffs two times. Plotkin acquired a minority stake in the Hornets in 2019 and has served as an alternate governor on the NBA Board of Governors.
Persons: Charlotte, Michael Jordan, Basketball Association's Charlotte, Gabe Plotkin, Rick Schnall, Jordan, Plotkin, Schnall, Clayton, Dan Sundheim, J, Cole, Eric Church Organizations: Charlotte Hornets, Spectrum Center, Basketball Association's, Basketball Association's Charlotte Hornets, Hornets, NBA, of Governors, Tallwoods, NBA's Atlanta Hawks, Hawks, D1, North Carolina, Hornets Sports & Entertainment, G League, Greensboro Swarm, Spectrum, Forbes Locations: Charlotte , North Carolina, Dubilier
The next 30 minutes of DeSantis’ speech then demonstrated how Biden might survive despite all the doubts about his performance and capabilities. In that way, DeSantis’ first swing through Iowa showed why Republicans are still at risk in 2024 from a key dynamic that dashed their hopes of a sweeping “red wave” in 2022. Many strategists in both parties believe that dynamic is most likely to recur in 2024 if the GOP nominates Trump. One reason, Republicans argue, is that the eventual nominee likely will talk about these issues less in a general election. Beset by all the difficult domestic conditions DeSantis highlighted, Biden will likely struggle straight through November 2024 to affirmatively convince a majority that his performance deserves another term.
Persons: Ron DeSantis, Joe Biden, Biden, DeSantis, Donald Trump, , Sarah Longwell, MAGA Trump, , Trump, Chris Wilson, Republican pollster, Jesse Ferguson, SRSS, “ Biden, Ronald Reagan, Bill Clinton, George W . Bush, “ DeSantis, Ferguson, don’t, , David Kochel, Kochel, can’t, Mitt Romney, Hillary Clinton’s, suburbanites, Nick Gourevitch, DeSantis ’, dethroning Trump, Sen, Bernie Sanders, Biden “ Organizations: CNN, Florida Gov, Biden’s, Republicans, GOP, Trump, Republican, Longwell, Biden, White House, White, Edison Research, House, Democrats, Senate, Fox News, Walt Disney Co, Democratic, eventual Locations: Iowa, Des Moines, Biden’s America, America, Florida, Arizona , Georgia, Nevada , New Hampshire , Pennsylvania, Wisconsin, Michigan
[1/2] World Bank President Ajay Banga arrives for his first day of work at World Bank headquarters in Washington, U.S. June 2, 2023. REUTERS/Jonathan ErnstWASHINGTON, June 2 (Reuters) - The World Bank's new president Ajay Banga on Friday asked the lender's 16,000 staff to "double down" on development and climate efforts as he seeks to accelerate the bank's evolution to tackle the most pressing global problems. The World Bank Group is being asked to lead the way, to double down on development and climate efforts and to deliver even more impact and results," he said. He added this would require "all shoulders to the wheel," and all of the World Bank's divisions working together to deliver solutions needed by the world. Banga, 63, was elected to a five-year term as World Bank president by the lender's board of governors in May.
Persons: Ajay Banga, Jonathan Ernst WASHINGTON, Banga, Janet Yellen, Yellen, Joe Biden, David Malpass, Kevin Gallagher, There's, David Lawder, David Holmes, Hugh Lawson Organizations: World Bank, REUTERS, Friday, Mastercard, Reuters, Thursday, U.S, Treasury, Boston, Global, Policy, Thomson Locations: Washington , U.S, Banga, Paris
Goldman Sachs' COO, John Waldron, gave a speech on Thursday touting the firm's growth opportunities. The shoutout comes as Goldman Sachs joins its Wall Street peers by seeking to boost its wealth business that caters to the rich. Waldron on Thursday admitted that Goldman has "underinvested" in the private wealth business. Goldman's wealth business Goldman Sachs has about 1,000 advisors overseeing $1 trillion for its ultra-high net worth clients with at least $10 million to invest. The unit works closely with moneyed entrepreneurs, prime targets for Goldman's private wealth business.
Persons: Goldman, John Waldron, Nishi Somaiya, Goldman Sachs, David Solomon's, Nishi, We've, Waldron, Somaiya, Marc Nachmann Organizations: Oxford, Private, Silicon Valley Bank, UBS's, Credit Suisse, Bloomberg, University of Oxford, Royal Ballet School Locations: Silicon, Europe, Americas, SVB
WASHINGTON, June 1 (Reuters) - U.S. Treasury Secretary Janet Yellen on Thursday told incoming World Bank Group President Ajay Banga to "get the most out of the bank's balance sheet" and mobilize more private capital for climate finance and global development objectives, the Treasury said. That includes continuing to implement recommendations from last year's G20 report on capital adequacy, which argued that changes to multilateral development banks could unlock hundreds of billions of dollars in new lending. She also said the World Bank needed to work more closely with its sister development banks. Banga, 63, was elected to a five-year term as World Bank president by the lender's board of governors on May 3. The U.S., the World Bank's largest shareholder, has traditionally chosen an American to run the World Bank, while Europe has chosen the head of the International Monetary Fund.
Persons: Janet Yellen, Ajay Banga, David Malpass, Yellen, Joe Biden, Malpass, David Lawder, Richard Chang, Chris Reese Organizations: . Treasury, World Bank, Treasury, Mastercard, AAA, U.S, International Monetary Fund, Thomson Locations: Banga, Ukraine, U.S, American, Europe
Premarket stocks: The banking crisis isn't over
  + stars: | 2023-05-31 | by ( Nicole Goodkind | ) edition.cnn.com   time to read: +6 min
New York CNN —Amid the US debt ceiling turmoil, a potential recession and the upcoming Fed meeting, Wall Street has a lot on its plate. Even as US lawmakers race to prevent a catastrophic default, the lingering effects of the regional banking crisis have not been completely extinguished. CEO Jamie Dimon said that his company’s emergency intervention had ended the immediate turmoil of the banking crisis. The SPDR Regional Banking ETF (KRE), which tracks a number of small and mid-sized bank stocks, is down about 3% so far this month and over 30% lower so far this year. Analysts are concerned that as rates get higher, the borrowing environment becomes tougher for regional banks, hurting their ability to lend.
Persons: New York CNN —, JPMorgan Chase, Jamie Dimon, , Janet Yellen, ” Fitch, , What’s, Goldman Sachs, Joe Biden, Kevin McCarthy, Biden’s, Matt Egan Organizations: CNN Business, Bell, New York CNN, First Republic Bank, Silicon Valley Bank, Signature Bank, JPMorgan, First Republic, Fitch, Governors, Federal Reserve, Banking, PacWest Bancorp, Western Alliance Bancorp, Republican, Treasury Department, CNN, Saudi, Wall Street Journal Locations: New York, Banking, EY, , Saudi Arabia, Russia, OPEC, China, Vienna
IAEA resolves nuclear issues with Iran - Iranian Media
  + stars: | 2023-05-30 | by ( ) www.reuters.com   time to read: 1 min
DUBAI, May 30 (Reuters) - The International Atomic Energy Agency (IAEA) has resolved nuclear issues with Iran relating to one of three sites being investigated over the presence of uranium particles, Iranian media reported on Tuesday. The agency’s alleged case regarding the findings of uranium particles with 83.7 purity has also been closed, a source told the semi-official Mehr news agency. The IAEA is due to issue quarterly reports on Iran this week, ahead of a regular meeting of its 35-nation Board of Governors next week. Reporting by Dubai Newsroom, editing by Ed OsmondOur Standards: The Thomson Reuters Trust Principles.
In 1965, President Lyndon Johnson told a room full of governors and state officials that he found the filthy river flowing a mile from the Capitol “disgraceful.” Now the Potomac River runs much cleaner, thanks to the landmark Clean Water Act of 1972 — and that adjective employed by Johnson serves as an apt description today of the failures of the Supreme Court and Congress to protect the nation’s waterways. After half a century of painstaking restoration under the Clean Water Act, streams and wetlands nationwide are once again at risk of contamination by pollution and outright destruction as a result of a ruling on Thursday by the Supreme Court. The Environmental Protection Agency has long interpreted the Clean Water Act as protecting most of the nation’s wetlands from pollution. But now the court has significantly limited the reach of the law, concluding that it precludes the agency from regulating discharges of pollution into wetlands unless they have “a continuous surface connection” to bodies of water that, using “ordinary parlance,” the court described as streams, oceans, rivers and lakes. At least half of the nation’s wetlands could lose protection under this ruling, which provides an even narrower definition of “protected waters” than the Trump administration had sought.
CNN —Congressional lawmakers grilled Federal Reserve Inspector General Mark Bialek Wednesday over possible insider trading among Fed officials in 2020, accusing the nation’s central bank of inaction. The heads of the Boston and Dallas Federal Reserve banks retired early in 2021 after trades they made before and during the pandemic came to light. Bialek told lawmakers there was no conflict of interest and that he was still able to conduct fair, independent investigations. This is not acceptable.”The Office of Inspector General declined to comment Wednesday night. A separate Fed investigation into SVB’s collapse, not involving Bialek, faulted Fed supervisors.
Ex-bank executive steps down from NY Fed board
  + stars: | 2023-05-16 | by ( Michael S. Derby | ) www.reuters.com   time to read: +4 min
The regional Fed said Murphy stepped down from one of its New York Fed director slots reserved for bankers. Arrow, a bank holding company, also owns Saratoga National Bank and Trust Co.Murphy had been a Class A director on the New York Fed board since January 2021. Fed bank presidents have also said their boards provide local economic intelligence and advice on running large institutions. The New York Fed has had its own troubles with bankers on its board in years past. The setup of the regional Fed board of directors is determined by law and not the central bank.
Chief Standing Bear is honored on a USPS Forever stamp
  + stars: | 2023-05-16 | by ( Harmeet Kaur | ) edition.cnn.com   time to read: +4 min
The stamp, which features a portrait of Chief Standing Bear by illustrator Thomas Blackshear II, was unveiled last week at a ceremony in Lincoln, Nebraska. “I hope this stamp will serve as a reminder of the lessons we’ve learned from Chief Standing Bear, and the brave Ponca people, especially here in the Cornhusker State.”Chief Standing Bear was a leader of the Ponca people in the late 1800s. An archival photo of Chief Standing Bear, a leader of the Ponca people in the late 1800s. In 1879, a newspaper editor interviewed Chief Standing Bear while in detention, and the story of his plight gained national attention, according to the Oklahoma Historical Society. In a speech before the court, Chief Standing Bear said through an interpreter, “That hand is not the color of yours, but if I pierce it, I shall feel pain.
Philip Jefferson, an economist who joined the Federal Reserve’s Board of Governors in May 2022, was nominated by President Biden on Friday to be its vice chair. I didn’t write about his appointment last year; his proposed elevation gives me a second chance to discuss his ideas. He became a Fed staff economist, a professor and then the vice president for academic affairs and dean of faculty at Davidson College in North Carolina. On the Board of Governors he is considered a centrist. If confirmed as vice chair, as is expected, Jefferson would become the second Black person to serve in the post, following Roger W. Ferguson Jr., who held it from 1999 to 2006.
The US Senate Committee on Banking, Housing and Urban Affairs is holding three hearings this coming week centered around the collapses of Silicon Valley Bank and Signature Bank in March. ET : Greg Becker, former chief executive, Silicon Valley Bank; Scott Shay, former chairman and co-founder, Signature Bank and Eric Howell, former president, Signature Bank. ET : Mark Bialek, inspector general, Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau; Paul Kupiec, senior fellow, American Enterprise Institute and more. Since then, the Federal Reserve and Federal Deposit Insurance Corporation have released reports detailing management missteps at SVB and Signature Bank, as well as federal regulators’ own mistakes in properly addressing red flags preceding the banks’ demises. A separate report from the Federal Reserve Bank of New York on Friday shows that American households are becoming increasingly frugal.
Federal Reserve Governor Philip Jefferson will be nominated by President Joe Biden to be vice chairman of the central bank's board, the White House announced Friday. As vice chair, he takes a position last occupied by Lael Brainard, who is now Biden's director of the National Economic Council. Before coming to the Fed, Jefferson was a professor of economics as well as vice president for academic affairs and dean of faculty at Davidson College. The nomination was not unexpected; multiple media outlets had reported that Jefferson was Biden's likely choice as vice chair. If confirmed, Jefferson would be the second Black person to hold the vice chair position.
If confirmed, Kugler, a Colombian-American, would be the first Latino to serve on the Fed board, marking the latest effort by Biden to improve the central bank’s diversity. Kugler, who is currently on leave from Georgetown University, previously worked in the Obama administration as the Labor Department’s chief economist. Getty Images/AlamyJefferson, who joined the Fed as a governor a year ago, has been tapped by Biden to the influential role of vice chair, serving as the No. He joined the Fed board in May 2022, after winning broad bipartisan support during his congressional confirmation process. He taught economics at Swarthmore College, Columbia University and the University of Virginia, and served as a high-ranking administrator at Davidson College.
Good news for markets next week: no default, no credit agency downgrade, no apocalypse. Worrying 2011 precedent Recent history tells investors that stocks will move more violently during a debt ceiling standoff. Retail sales update Debt negotiations aside, investors get updates next week on the state of American consumer spending when April retail sales are reported Tuesday alongside earnings from Home Depot. Deutsche Bank estimates that April retail sales expanded month over month by 0.7%, the market consensus. Credit Suisse is less optimistic, forecasting that April retail sales grew by 0.6%, but, excluding vehicles, were unchanged.
Florida lawmakers sent DeSantis a bill that would let him stay governor while running for president. "I don't think we have seen a six-month stretch that has ever been this productive in the history of our state," DeSantis said at the Florida Capitol in Tallahassee on Friday. Should DeSantis be successful in a presidential run, he would follow in the footsteps of Democrat Bill Clinton and Republican George W. Bush. Ron DeSantis speaks during an election night watch party at the Convention Center in Tampa, Florida, on November 8, 2022. During a press conference in Panama City, Florida, on Thursday, DeSantis continued to play coy about his intentions.
As a member of the Fed's Board of Governors a decade ago, Powell called certain possible debt default responses by the Fed "loathsome." Accepting defaulted securities as collateral for Fed loans, or swapping "good" federal debt already held by the Fed for impaired debt held by private investors, would be an extreme variation on the theme - yet one that may prove less "loathsome" than the alternative economic collapse some predict would follow a default. To a central bank, with no budget constraint and an elastic time horizon, it's just a matter of waiting out the politicians. Powell joined the Fed in 2012 from a think tank where he focused on debt and deficit issues. A debt default may pose another tough decision for a Fed chair who's motto could well be to never say never.
The election came after World Bank board members interviewed Banga for four hours on Monday. Biden congratulated Banga on his "resounding approval" to run the World Bank, which he described as "one of humanity’s most critical institutions to reduce poverty and expand prosperity around the globe." "Ajay Banga will be a transformative leader, bringing expertise, experience, and innovation to the position of World Bank President," Biden said. "The Board looks forward to working with Mr. Banga on the World Bank Group Evolution process, as discussed at the April 2023 Spring Meetings, and on all the World Bank Group’s ambitions and efforts aimed at tackling the toughest development challenges facing developing countries," the bank said. The World Bank has been led by an American since its founding at the end of World War Two, while the International Monetary Fund has been led by a European.
The election came after World Bank board members interviewed Banga for four hours on Monday. Biden congratulated Banga on his “resounding approval” to run the World Bank, which he described as “one of humanity’s most critical institutions to reduce poverty and expand prosperity around the globe.”“Ajay Banga will be a transformative leader, bringing expertise, experience, and innovation to the position of World Bank President,” Biden said. “It is a challenging moment, but it’s a moment where the World Bank remains more vital than ever, and where getting the evolution of the World Bank is absolutely critical,” the official said. “The Board looks forward to working with Mr. Banga on the World Bank Group Evolution process … on all the World Bank Group’s ambitions and efforts aimed at tackling the toughest development challenges facing developing countries,” the bank said. The World Bank has been led by an American since its founding at the end of World War Two, while the International Monetary Fund has been led by a European.
Explainer: How the Fed might act in a U.S. default
  + stars: | 2023-05-02 | by ( ) www.reuters.com   time to read: +6 min
Despite Powell's protestations, the Fed would have a role in trying to limit the harm to financial stability. In past debt-ceiling standoffs - in 2011 and 2013 - Fed staff and policymakers developed a playbook that would likely provide a starting point. English, however, had envisioned the bonds being accepted by the Fed at a market price that would likely be impaired by their defaulted status. But, following the bank failures in March, the Fed has a new bank lending facility - one that allows securities with impaired prices to be pledged at face value. Ben Bernanke, Fed chair at the time, quipped: "So you are willing to accept 'loathsome' under some certain circumstances," drawing laughter from others on the call.
Other Fed officials have also faced heat for their trading activities, including Powell and former Vice-Chairman Richard Clarida. Meanwhile, last year Atlanta Fed leader Raphael Bostic acknowledged some of his investment activity inadvertently happened at forbidden periods. The IG is still looking into the trading of regional Fed officials. The Fed formalized new rules that sharply restricted what Fed officials and senior staff can trade and when they can do it, and required pre-approval for trades as well in February of last year. But according to the report, some at the central bank viewed the process as burdensome and possibly even unnecessary.
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