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☆ NY Fed index shows global supply chain pressures eased further in March
▼ + stars: | 2023-04-06 | by ( Michael S. Derby | ) www.reuters.com time to read: +3 min

The bank said that as of March, its Global Supply Chain Pressure index moved to a reading of -1.06, versus the revised -0.28 seen in February. "Global supply chain conditions have largely normalized after experiencing temporary setbacks around the turn of the year," the bank said in its report. The index has seen extended periods of below-average supply chain stress and was in negative territory during the summer of 2019, ahead of the onset of the coronavirus pandemic. There was also an extended period of below-normal supply chain stress between roughly 2011 and 2016. But price pressures driven by non-energy service factors stripped of housing are "having the most trouble" abating, Williams said.

☆ Fed's Williams says financial conditions key to rate policy outlook
▼ + stars: | 2023-03-31 | by ( Michael S. Derby | ) www.reuters.com time to read: +2 min

WASHINGTON, March 31 (Reuters) - Federal Reserve Bank of New York President John Williams said Friday uncertain developments with financial conditions will be a key contributor to his thinking about what’s next for central bank interest rate policy. When the Fed met last week and raised its overnight target rate it noted that tighter financial conditions will likely weigh on growth. In thinking about monetary policy, “I will be particularly focused on assessing the evolution of credit conditions and their effects on the outlook for growth, employment, and inflation,” Williams said in his speech. The New York Fed president’s remarks Friday were his first since the FOMC met last week. In his remarks, Williams laid out some short-term pain for the economy as the Fed uses policy to cool inflation.

The Federal Reserve has raised interest rates repeatedly since 2022, and that makes credit card debt expensive. With debt balances at $986 billion, Americans will pay $45 billion more in interest than they would have. Black and Hispanic Americans are more likely to have credit card debt than white Americans. At the beginning of 2022, the average credit card interest rate was 16.17%, according to the Board of Governors of the Federal Reserve. Ways to take control of your credit card debtIf you find yourself with large credit card debt, it's a good idea to pay it off quickly.

☆ U.S. regulators say banking system 'sound and resilient'
▼ + stars: | 2023-03-24 | by ( David Lawder | ) www.reuters.com time to read: +3 min

WASHINGTON, March 24 (Reuters) - The multi-regulator U.S. Financial Stability Oversight Council agreed on Friday that the U.S. banking system remains "sound and resilient" despite stress on some institutions, the U.S. Treasury said in its latest statement to calm jittery markets and bank depositors. "The Council discussed current conditions in the banking sector and noted that while some institutions have come under stress, the U.S. banking system remains sound and resilient," the Treasury said in a statement. They added that the basis of the Treasury, Fed and FDIC determinations in the SVB and Signature cases "are of particular importance." Those actions to invoke "systemic risk exceptions" were taken by Yellen, President Joe Biden, the FDIC, and the Fed, which supervised Silicon Valley and Signature. Reporting by David Lawder; additional reporting by Pete Schroeder; Editing by Diane Craft and Marguerita ChoyOur Standards: The Thomson Reuters Trust Principles.

☆ U.S. Treasury says FSOC agreed banking system sound
▼ + stars: | 2023-03-24 | by ( ) www.reuters.com time to read: 1 min

WASHINGTON, March 24 (Reuters) - The U.S. Treasury said that the multi-regulator Financial Stability Oversight Council agreed in a meeting on Friday that the U.S. banking system remains "sound and resilient" despite stress on some institutions. In a readout of the closed meeting held by videoconference, the Treasury said that FSOC participants heard a presentation on market developments from the staff of the Federal Reserve Bank of New York. "The Council discussed current conditions in the banking sector and noted that while some institutions have come under stress, the U.S. banking system remains sound and resilient," the Treasury said in a statement. Reporting by David Lawder; editing by Jonathan OatisOur Standards: The Thomson Reuters Trust Principles.

☆ U.S. poised to tighten reporting rules on $20 tln private fund sector
▼ + stars: | 2023-03-17 | by ( Douglas Gillison | ) www.reuters.com time to read: +3 min

March 17 (Reuters) - Wall Street's top regulator is set to adopt new rules aimed at bolstering oversight of systemic risk in the burgeoning, multitrillion-dollar world of private equity and hedge-funds. As proposed in January 2022, the rule would require reporting of such events to the SEC within one business day. The agency billed the new rule in part as a means of supporting the Financial Stability Oversight Council, a multi-agency risk-monitoring body also created under Dodd-Frank. The proposal offered "scant evidence" that it would enhance FSOC's monitoring for systemic risk, she said in dissenting remarks against the proposal, adding that it would likely become a tool "for government to micromanage private fund risk management." Reporting by Douglas Gillison; Editing by David GregorioOur Standards: The Thomson Reuters Trust Principles.

☆ U.S. to pledge over $171 mln in aid for Venezuela -US official
▼ + stars: | 2023-03-17 | by ( ) www.reuters.com time to read: +1 min

WASHINGTON, March 17 (Reuters) - The United States plans to pledge over $171 million in funding for Venezuela at a donor conference on Friday in Brussels, a U.S. official told Reuters, as the country's opposition awaits U.S. moves to process frozen Venezuelan government funds. The pledge is expected to come at a European Union-backed conference focused on building solidarity with Venezuelan refugees and migrants. The U.S. official did not provide details on the funding, which builds on a further $376 million in funding Washington pledged last year. Washington backs Venezuela's opposition, recognizing its parallel legislature and decrying what it says is President Nicolas Maduro's dictatorship. Under the administration of former President Donald Trump, the United States intensified its sanctions against the South American country.

[1/2] A logo of Airbus is seen at the entrance of its factory in Blagnac near Toulouse, France, July 2, 2020. But whereas this makes up some 12% of market forecasts for Boeing's 2023 deliveries, Airbus has secured just 9% of its 2023 target of 720 jets, below the trend for this time of year. After missed targets in 2022, Airbus Chief Executive Guillaume Faury has told executives that 2023 will be "make or break" for the company's industrial reputation, industry sources said. In February, Airbus delivered 46 jets, up from 20 in January, for a total of 66 in the first two months of 2023. Lessors have said both jetmakers are delivering planes three-to-six months late, though Airbus is pushing to maintain higher industrial output.

☆ Dow and S&P 500 updates: Fed Chair Jerome Powell testifies
▼ + stars: | 2023-03-07 | by ( Alicia Wallace | Krystal Hur | ) edition.cnn.com time to read: +1 min

This time last year, Federal Reserve Chair Jerome Powell's congressional address came on the heels of Russia's invasion of Ukraine, surging gas prices and a significant escalation in US inflation. The economy continuing to rebound and repair itself from the lingering effects of the pandemic — including the disruptions of the Omicron variant. Faced with a strong labor market, uncertain geopolitical developments and surging inflation, Powell told members of Congress then that he'd likely propose a quarter-point rate hike at the central bank's forthcoming meeting — which he did. Since then, the central bank has hiked its benchmark interest rate eight times, bringing borrowing rates from almost zero to a range of 4.5%-4.75%. There are signals that some inflationary pressures have eased, however: China's economic growth was recently downgraded; and supply chain disruptions are easing, the Federal Reserve Bank of New York reported Monday.

☆ What’s changed since Powell last headed to Capitol Hill
▼ + stars: | 2023-03-07 | by ( Alicia Wallace | ) edition.cnn.com time to read: +2 min

It’s his first appearance before the committee since June last year, when inflation was on its way to 9%. Inflation has slowed in recent months, measuring 6.4% in January after hitting a 40-year high of 9.1% in June. Faced with a strong labor market, uncertain geopolitical developments and surging inflation, Powell told members of Congress then that he’d likely propose a quarter-point rate hike at the central bank’s forthcoming meeting. It’s now March 2023, and the central bank is faced with an “extraordinarily strong” labor market, ongoing geopolitical uncertainty and stubborn inflation. One month ago, the probability for a half-point increase was 3.3%, according to the CME FedWatch Tool.

☆ Consumers keep spending. That might not be good news for them or the Fed
▼ + stars: | 2023-03-06 | by ( Alicia Wallace | ) edition.cnn.com time to read: +9 min

And by November and December, those predictions appeared to be materializing, when data showed consumers had pulled back during the holiday shopping season. During a month chock full of suprisingly strong economic data, the Commerce Department’s retail sales and consumer spending reports far surpassed expectations. “It’s not sustainable to keep spending above their means.”Eyes on the FedHearty consumer spending at a time like this is a double-edged sword, said Ted Rossman, senior industry analyst for Bankrate and CreditCards.com. “The resilience of consumer spending is probably the biggest thing that’s pushed this recession timetable out,” Rossman said. The Home Depot (HD) warned of flat sales for 2023 as consumers continue shift spending from goods to services.

☆ People are over the 40-hour workweek: 'We don't want to waste our time'
▼ + stars: | 2023-03-03 | by ( Morgan Smith | ) www.cnbc.com time to read: +2 min

As a result, more people are breaking out of the 40-hour workweek. "People have a much lower tolerance for this, and are less afraid to say, 'We don't want to waste our time.'" "Like, if you're making me come to the office or attend an on-site meeting, it better be good." Time is moneyRising inflation and the overall increased cost of living have made the monetary value of people's time even more salient. In fact, 73% of U.S. workers plan to freelance this year, according to Fiverr, which polled 2,000 workers in December 2022.

☆ Cash-strapped homeowners are swarming to HELOCs at the fastest rate in more than a decade to pay for food, gas, and renovations
▼ + stars: | 2023-03-01 | by ( Alcynna Lloyd | ) www.businessinsider.com time to read: +6 min

Higher mortgage rates have curbed cash-out refinancing, one way of tapping the equity. HELOC rates have climbed, too, but homeowners have flexibility with how much financing they buy versus taking out a 30-year loan on the house. HELOC rates averaged 7.8% in mid February. High mortgage rates have created a lock-in effect in the US housing market as the majority of US home loans were created with 30-year rates below 4%. Since October, when he bought the property and started renovations, the interest rate on his loan has increased from 6.5% to 7.5%.

See Insider's picks for the best private student loans >>What is student loan interest? See Insider's picks for the best tax software >>"Student loan interest is tax deductible," says Leslie Tayne, a financial attorney who specializes in student loan debt. Insider's Featured Student Loan Refinance Companies SoFi Student Loan RefinancingSplash Financial Student Loan RefinancingEarnest Student Loan Refinancing Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options. APR Variable: 5.09% - 8.99%, Fixed: 4.49% - 8.99% Editor's Rating 4.5/5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star APR Variable: 3.99% - 9.24% with AutoPay, Fixed: 4.39% - 9.24% with AutoPay Editor's Rating 3.5/5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star APR Actual rate and available repayment terms will vary based on your income. See Insider's picks for the best student loans without a cosigner >>Will my student loan interest rate change?

☆ 60% of Americans live paycheck to paycheck — 'inflation is part of their everyday lives,' expert says
▼ + stars: | 2023-02-28 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

Despite higher prices, consumers are still spending, although not as much as a year ago, which is giving their budgets some breathing room. As of January, 60% of all U.S. adults, including 45% of high-income earners, were living paycheck to paycheck, according to a new LendingClub report. That's down from 64% a year earlier, suggesting that last year's spending cutbacks have improved some consumers' financial situations. Yet the latest inflation reading from last Friday's core personal consumption expenditures index was hotter than expected, showing some spending habits are hard to break. Here's what to knowAs data shows inflation rose in January, here's what to expectAlmost half of Americans think we're already in a recessionTo make ends meet as prices increase, more Americans are leaning on credit cards, other reports show.

☆ Debt due to another person's fraud can't be discharged in bankruptcy. Neither can these bills
▼ + stars: | 2023-02-28 | by ( Sarah O'Brien | ) www.cnbc.com time to read: +5 min

That includes $11.9 trillion in mortgages, $1.6 trillion in student loans, another $1.6 trillion in car loans and more than $990 billion in credit card debt. Some debts cannot be wiped out in bankruptcyFirst, while most forms of consumer debt — credit card debt, personal loans, medical debt, mortgages and auto loans — are generally fair game for either eliminating or negotiating a lower payback amount in bankruptcy, that's not true for student loan debt. Same goes for cash advances above $1,100 from a single creditor in the 70 days ahead of filing bankruptcy. Both Chapters 7 and 13 stop collection activity like calls from creditors or debt collectors, wage garnishments and, potentially, lawsuits from creditors. This approach can quickly erase certain forms of unsecured debt, including from credit cards, medical bills and personal loans.

☆ Op-ed: The calm before the storm – These 3 drivers will dictate the landing ahead for the U.S. economy
▼ + stars: | 2023-02-28 | by ( Rebecca Patterson | ) www.cnbc.com time to read: +5 min

The approach of those storms seems an appropriate analogy to the U.S. economic outlook today. Investors today are keenly focused on what kind of economic landing the U.S. will have and how best to position for different outcomes. That's critical for the broader growth outlook, given that consumption represents around two-thirds of the economy. While many U.S. firms are expressing their nervousness about the economic outlook, they are at the same time still seeking to hire. A negative feedback loop would likely ensue, with less income weighing on spending and less spending making companies more cautious.

☆ Yellen says legal obstacles remain on seizure of Russian assets to aid Ukraine
▼ + stars: | 2023-02-27 | by ( David Lawder | ) www.reuters.com time to read: +3 min

Feb 27 (Reuters) - U.S. Treasury Secretary Janet Yellen said on Monday that Russia should bear the costs of damage caused by its invasion of Ukraine, but there are "significant legal obstacles" to confiscating major frozen Russian assets. Washington has confiscated assets used in criminal activity but central bank and other large pools of assets frozen by sanctions are another matter. "We have on this small scale, seized assets, but there are certainly legal challenges in doing more than that," she said. The United States and Western allies have seized more than $300 billion in Russian central bank foreign currency assets frozen by sanctions. The assets are held abroad, with a significant portion at the Federal Reserve Bank of New York, but remain under Russian ownership.

☆ Inflation is doing a crab walk and Fed officials fear its pinch
▼ + stars: | 2023-02-26 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

Some background: The Covid-19 crisis triggered a sudden shift in student loan policy and a new openness to forgiveness. About 40% of those with federal student loan debt would have a zero balance; even more would have a much smaller monthly payment. But, “if payments resume without debt relief, we expect both student loan default and delinquencies to rise and potentially surpass pre-pandemic levels,” warned Fed researchers. Those missed payments suggest that some federal student loan borrowers are having trouble meeting their monthly debt obligations. “We expect these delinquency patterns to worsen if federal student loan payments resume without relief,” said the report.

☆ As emergency savings drop and credit card debt rises, an 'ugly stew is brewing,' warns advocate
▼ + stars: | 2023-02-24 | by ( Lorie Konish | ) www.cnbc.com time to read: +3 min

Valentinrussanov | E+ | Getty ImagesHigh inflation is leading to reduced savings and higher credit card debt — and there are some signs households may be reaching a tipping point under increased financial pressures. A new survey from Bankrate finds 39% of individuals surveyed in January said their emergency savings are less than they were last year. Still, slightly more than half of respondents — 51% — said they have more emergency savings than credit card debt. The remaining 13% have no credit card debt nor any emergency savings. Bankrate's survey found 45% of millennials, 44% of Gen Xers and 38% of Gen Zers have more credit card debt than money in savings.

☆ Half of Americans have less emergency savings than last year or no savings at all
▼ + stars: | 2023-02-24 | by ( Madison Hoff | ) www.businessinsider.com time to read: +5 min

A Bankrate survey that took place from January 20 to January 23 asked about how a respondent's emergency savings compared to these savings a year ago. About 4 in 10 US adults have fewer emergency savings than they did just a year prior, according to the survey conducted by SSRS. But not everyone has seen their emergency savings fall from where they stood a year ago. "Many have resorted to tapping their emergency savings if they have it, or have taken on credit card debt, or some combination. And emergency savings is money of course that should be highly liquid for when and if they need to tap that money supply."

☆ Borrowers with student loans in default can get a 'fresh start' under this Biden initiative—how it works
▼ + stars: | 2023-02-21 | by ( Kamaron Mcnair | ) www.cnbc.com time to read: +2 min

The change wasn't due to a sudden influx of borrowers rehabilitating their loans, but rather the beginning of President Joe Biden's "Fresh Start" initiative. Here's how the Fresh Start program works and how borrowers can take advantage. An easier path back to repaymentWhen you enroll in the Fresh Start program, your loans become "current" again, giving you access to student loan forgiveness and repayment programs. With the Fresh Start, they get another chance to do so. What happens to student loans in default?

Our experts answer readers' student loan questions and write unbiased product reviews (here's how we assess student loans). Federal student loan rates for the 2023-24 school year have risen by the widest margin in about 20 years. While private student loan rates aren't directly affected by federal rates, they're likely to increase because they don't have to stay as low to remain competitive with federal ones. For instance, the Biden administration extended the repayment pause on federal student loans through the end of August 2023. Insider's Featured Student Loan Refinance Companies SoFi Student Loan RefinancingSplash Financial Student Loan RefinancingEarnest Student Loan Refinancing Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

☆ Household debt, credit card balances and delinquencies all rose last quarter
▼ + stars: | 2023-02-16 | by ( Alicia Wallace | ) edition.cnn.com time to read: +1 min

Minneapolis CNN —Americans continued to add to their debt at the end of last year — and grew their credit card balances at record rates, according to data released Thursday by the Federal Reserve Bank of New York. Total US household debt hit $16.9 trillion during the fourth quarter, an increase of $394 billion, or 2.4%, from the prior three-month period, according to the Fed’s latest Quarterly Report on Household Debt and Credit. While the lion’s share of the debt is attributable to mortgages, the report showed that not only are credit card balances swelling at record levels, delinquencies are on the rise as well. Credit card balances increased nearly 6.6% to $986 billion during the quarter, the highest quarterly growth on record, according to New York Fed data that goes back to 1999. And as debt is growing, Americans are having more trouble meeting payment obligations: The share of current debt becoming delinquent increased across nearly all debt types, with credit cards and auto loans showing delinquency transparency rates of 0.6 and 0.4 percentage points, respectively.

☆ Premarket stocks: Welcome to the 'rolling recession' economy
▼ + stars: | 2023-02-09 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +8 min

Yet US manufacturing has likely already contracted into a recession, housing sales have plummeted, tech layoffs keep coming and corporate earnings growth is souring. “We continue to think the economy will suffer from rolling recessions, evidenced by the fact that corporate earnings growth is now entering its downturn,” wrote Sonders in a note on Wednesday. For five straight weeks, the bank’s clients have been big buyers of individual stocks and sellers of ETFs, she wrote. Disney revenue in the quarter rose 8% to $23.5 billion, edging past estimates of $23.4 billion from analysts surveyed by Refinitiv. The company reported revenue of $8.6 billion for the quarter, beating Wall Street’s estimates and marking a 49% increase from the prior year.

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