DOCSLIB.ORG

Dialogue with The

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Dialogue with The A Conversation with the Fed Sarah Arteaga Regional Director Florida Trust Seminar August 13, 2021 The views expressed are mine, and not necessarily those of the Atlanta Fed or the Federal Reserve System. The Line Up • The Fed • Regional Economic Information Network (REIN) • The Economy and the Monetary Policy Response Functions of the Federal Reserve • Supervision, Regulation and Credit • Financial Services • Monetary Policy 3 Supervision, Regulation and Credit The Fed Supervises: The Fed is one of the regulating • State-chartered banks bodies along with: • Bank and financial holding • The Federal Deposit Insurance companies Corp (FDIC) • International banking organizations • The Office of the Comptroller of the Currency (OCC) 4 Financial Services • The Reserve Banks operate collectively to: • Distribute currency and cash • Process checks • Process electronic payments • The Federal Reserve promotes efficiency in the payment system 5 Monetary Policy The Fed’s Dual Mandate from Congress: • Maximum employment • Price stability Tools the Fed uses to meet this mandate: • Reserve requirements • Discount rate • Open market operations 6 Decentralized Structure of the Fed 12 Federal Reserve Board of Governors Banks & their Branches Washington, DC and Directors Federal Open Market Committee (FOMC) 7 Board of Governors of the Federal Reserve System Jerome H. Powell Richard H. Clarida Lael Brainard Randal Quarles Chair Vice Chair Vice Chair for Supervision Michelle W. Bowman Christopher J. Waller Vacant 8 The Federal Reserve Bank Presidents Charles Evans Eric Rosengren Chicago Boston th 7 District 1st District James Bullard John Williams St. Louis New York th 8 District 2nd District Neel Kashkari Patrick Harker Minneapolis Philadelphia th 9 District 3rd District Esther George Loretta Mester Kansas City Cleveland th 10 District 4th District Robert Kaplan Dallas Tom Barkin 11th District Richmond 5th District Mary Daly Raphael Bostic San Francisco Atlanta th 12 District 6th District 9 The Sixth District Nashville Birmingham Atlanta Raphael Bostic Jacksonville President and CEO Federal Reserve Bank of Atlanta New Orleans Miami 10 Atlanta Board of Directors Claire W. Tucker Michael Russell Founding President and Chief Executive Officer CEO Emerita H. J. Russell & Company CapStar Bank Atlanta, Georgia Nashville, Tennessee Claire Lewis Arnold Chief Executive Officer Leapfrog Services, Inc. Atlanta, Georgia Mary A. Laschinger Former Chairman and CEO Veritiv Corporation Atlanta, Georgia Robert W. Dumas Chairman, President, and CEO AuburnBank Auburn, Alabama Elizabeth A. Smith Former Executive Chair Bloomin’ Brands, Inc. Myron A. Gray Tampa, Florida Former President, U.S. Operations United Parcel Service Kessel D. Stelling, Jr. Atlanta, Georgia Executive Chair Gregory A. Haile, J.D. Synovus Financial Corporation President Columbus, Georgia Broward College Fort Lauderdale, Florida 11 Jacksonville Branch Board of Directors Tim Cost Paul Boynton President Chairman, President & CEO Jacksonville University Nicole Thomas Rayonier Advanced Materials, Inc. Jacksonville, Florida President Jacksonville, Florida Baptist Medical Center Jacksonville, Florida John Hirabayashi President & CEO Community First Credit union Jacksonville, Florida Dawn Lockhart Bill West Director of Strategic Partnerships Chief Executive Officer City of Jacksonville The Bank of Tampa Jacksonville, Florida Tampa, Florida Eddy Moratin Executive Director LIFT Orlando Orlando, Florida 12 Regional Economic Information Network “REIN” 13 ECONOMIC OUTLOOK 14 The Fed’s Dual Mandate • The Fed is pursuing two objectives as given to us by Congress—maximum employment and price stability. • The maximum level of employment is largely determined by nonmonetary factors that affect the structure and dynamics of the job market, although a stronger economy does help with job creation. • The Federal Open Market Committee (FOMC) has chosen an inflation target of two percent year-over-year growth over the longer term. 15 Summary of the Economic Environment: The July 2021 FOMC Policy Statement • Overall financial conditions remain accommodative, in part reflecting policy measures to support the economy and the flow of credit to U.S. households and businesses. • The path of the economy continues to depend on the course of the virus. • Progress on vaccinations will likely continue to reduce the effects of the public health crisis on the economy but risks to the economic outlook remain. Excerpts from the July 2021 FOMC Statement 16 Contributions to Real GDP Growth quarterly, percent, seasonally adjusted annualized rate Intellectual Property Products Government Net Exports Nonresidential Equipment & Software Private Inventory Investment Residential Investment Nonresidential Structures Consumer Spending Real GDP 45 40 35 33.8 30 25 20 15 6.3 6.5 10 5 4.5 0 -5 -10 -15 -20 -25 -30 -35 -40 2018 2019 2020 2021 Sources: Bureau of Economic Analysis; Haver Analytics through Q2-21 17 The Employment Picture • In July, U.S. employers added 943,000 net jobs to payrolls. • The unemployment rate declined to 5.4 percent from 5.9 percent in June. • This measure is down considerably from its high at the end of April 2020. • However, it remains well above its level prior to the coronavirus (COVID-19) pandemic of 3.5 percent. Source: Bureau of Labor Statistics August 6, 2021 18 Contributions to Change in Nonfarm Payroll Employment Goods Producing Retail Trade Services (Information, Financial, and Other) Wholesale Trade, Transportation, and Utilities Professional and Business Services Leisure and Hospitality Government Education & Health Services Total Nonfarm thousands, seasonally adjusted 10,000 5,000 0 -5,000 -10,000 Leisure and Hospitality -7.5 million jobs -15,000 in April -20,000 -25,000 Jul-20 Oct-20 Apr-20 Apr-21 Jun-20 Jan-21 Jun-21 Mar-21 Mar-20 Feb-21 Nov-20 Dec-20 Aug-20 Sep-20 May-21 May-20 Sources: Bureau of Labor; Haver Analytics through June 2021 19 The Inflation Picture • The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. • With inflation having run persistently below this longer-run goal, the Committee will aim to achieve inflation moderately above 2 percent for some time so that inflation averages 2 percent over time and longer-term inflation expectations remain well anchored at 2 percent. 20 Summary of the Economic Environment: The July 2021 FOMC Policy Statement • With progress on vaccinations and strong policy support, indicators of economic activity and employment have continued to strengthen. • The sectors most adversely affected by the pandemic have shown improvement but have not fully recovered. • Inflation has risen, largely reflecting transitory factors. Excerpts from the July 2021 FOMC Statement 21 Personal Consumption Expenditure (PCE) Price Index Personal Consumption Expenditure (PCE) Price Index year-over-year percent change, monthly 4.0 PCE Core PCE Trimmed Mean PCE 3.5 3.9 3.5 2.0 3.0 2.5 FOMC Inflation Objective 2.0 1.5 1.0 0.5 0.0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Sources: Bureau of Economic Analysis; Federal Reserve Bank of Dallas; Haver Analytics through June 2021 22 Atlanta Fed’s Business Inflation Expectations Survey Atlanta Fed’s Business Inflation Expectations Survey year-ahead unit cost expectations percent, monthly 3 2.5 2 1.5 1 Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18 Jul-19 Jul-20 Jul-21 Source: Atlanta Fed Business Inflation Expectations Survey through July 2021 For more information, visit: http://www.frbatlanta.org/research/inflationproject/bie/ 23 Jerome Powell, Chair, Federal Reserve Board of Governors “With inflation having run persistently below 2 percent, we will aim to achieve inflation moderately above 2 percent for some time so that inflation averages 2 percent over time and longer-term inflation expectations remain well anchored at 2 percent. We expect to maintain an accommodative stance of monetary policy until these employment and inflation outcomes Chair Powell’s Press Conference are achieved.” July 28, 2021 24 The Monetary Policy Response: • In July, the Committee decided to maintain the target range for the federal funds rate at 0 to 1/4 percent. • The Committee expects it will be appropriate to maintain this target range until labor market conditions have reached levels consistent with the Committee’s assessments of maximum employment, and inflation has risen to 2 percent and is on track to moderately exceed 2 percent for some time. • In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals. • This assessment will take into account a wide range of information, including: ➢ Readings on public health ➢ Labor market measures ➢ Inflation pressures and inflation expectations ➢ Readings on financial and international developments 25 COVID-19 Resources and Information • Follow these links for the latest COVID-19 updates from the Federal Reserve: • Federal Reserve System Board of Governors: https://www.federalreserve.gov/covid-19.htm • Federal Reserve Bank of Atlanta: https://www.atlantafed.org/news/covid-19 26 Questions? The views expressed are mine, and not necessarily those of the Atlanta Fed or the Federal Reserve System..
Load more

Recommended publications
  • Nominations of Joseph Otting and Randal Quarles Hearing Committee on Banking, Housing, and Urban Affairs United States Senate
    S. HRG. 115–133 NOMINATIONS OF JOSEPH OTTING AND RANDAL QUARLES HEARING BEFORE THE COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS UNITED STATES SENATE ONE HUNDRED FIFTEENTH CONGRESS FIRST SESSION ON THE NOMINATIONS OF: JOSEPH OTTING, OF NEVADA, TO BE COMPTROLLER OF THE CURRENCY, OFFICE OF THE COMPTROLLER OF THE CURRENCY RANDAL QUARLES, OF COLORADO, TO BE A MEMBER OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, AND VICE CHAIRMAN FOR SUPERVISION, BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM JULY 27, 2017 Printed for the use of the Committee on Banking, Housing, and Urban Affairs ( Available at: http://www.govinfo.gov/ U.S. GOVERNMENT PUBLISHING OFFICE 28–282 PDF WASHINGTON : 2018 For sale by the Superintendent of Documents, U.S. Government Publishing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 VerDate Nov 24 2008 13:17 Mar 27, 2018 Jkt 046629 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 S:\DOCS\28282.TXT SHERYL COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS MIKE CRAPO, Idaho, Chairman RICHARD C. SHELBY, Alabama SHERROD BROWN, Ohio BOB CORKER, Tennessee JACK REED, Rhode Island PATRICK J. TOOMEY, Pennsylvania ROBERT MENENDEZ, New Jersey DEAN HELLER, Nevada JON TESTER, Montana TIM SCOTT, South Carolina MARK R. WARNER, Virginia BEN SASSE, Nebraska ELIZABETH WARREN, Massachusetts TOM COTTON, Arkansas HEIDI HEITKAMP, North Dakota MIKE ROUNDS, South Dakota JOE DONNELLY, Indiana DAVID PERDUE, Georgia BRIAN SCHATZ, Hawaii THOM
    [Show full text]
  • Views on the Economy and Price-Level Targeting
    Views on the Economy and Price-Level Targeting Raphael Bostic President and Chief Executive Officer Federal Reserve Bank of Atlanta Atlanta Economics Club Federal Reserve Bank of Atlanta Atlanta, Georgia May 21, 2018 • Atlanta Fed president and CEO Raphael Bostic speaks at the Atlanta Economics Club’s luncheon about the economy, his economic outlook, and the Fed’s inflation target. • Bostic: The economy is arguably as close to the Fed's employment and inflation goals as it's been over this expansion. • Bostic continues to see the economy growing above potential this year, around 2 1/2 percent, and slowing to its longer-run growth rate of around 1 3/4 percent over the medium term. • Bostic notes that an upside risk to his economic outlook is the prospect for capital spending given tax reform, while a downside risk is the uncertainty about changes in trade policy. • Bostic asks if the current monetary policy framework is still the right one, noting that once monetary policy has normalized, the federal funds rate will settle at a level significantly below historical norms. • Bostic explains that if the real rate of interest is likely to remain low, then giving the Fed enough room to fight even run-of-the-mill economic downturns requires boosting the nominal rate of interest. • To increase the nominal rate, Bostic is drawn to a monetary policy framework that has a version of price-level targeting. • Bostic believes a sound policy framework provides a credible nominal anchor while maintaining flexibility to address changing circumstances, and flexible price-level targeting can be a part of such a framework.
    [Show full text]
  • IFFCBANO Symposium: Keeping Trade Moving
    IFFCBANO Symposium: Keeping Trade Moving Adrienne C. Slack Regional Executive Federal Reserve Bank of Atlanta - New Orleans Branch The views expressed here are my own, and not necessarily those of the Atlanta Fed or the Federal Reserve System. The Fed’s Dual Mandate • The Fed is pursuing two objectives as given to us by Congress— maximum employment and price stability. • The maximum level of employment is largely determined by nonmonetary factors that affect the structure and dynamics of the job market, although a stronger economy does help with job creation. • The Federal Open Market Committee (FOMC) has chosen an inflation target of two percent per year over the medium term as measured by the annual change in the price index for personal consumption expenditures. 2 Board of Governors of the Federal Reserve System Randal Quarles Jerome H. Powell Richard H. Clarida Lael Brainard Vice Chair for Chair Vice Chair Supervision Vacant Michelle W. Bowman Vacant 3 The Federal Reserve Bank Presidents Loretta Mester Charles Evans Neel Kashkari Patrick Harker Eric Rosengren Cleveland Chicago Minneapolis Philadelphia Boston 4th District 7th District 9th District 3rd District 1st District John Williams New York 2nd District Tom Barkin Richmond 5th District Mary Daly San Francisco Esther George Raphael Bostic Robert Kaplan James Bullard 12th District Kansas City Atlanta 10th District Dallas St. Louis 6th District 11th District 8th District 4 The Sixth District Information Flow Public Sixth Policy District Business Sixth FOMC District Research Sixth Atlanta District Board of President Directors 6 Summary of the Economic Environment: The May 2019 FOMC Policy Statement • Information received since the Federal Open Market Committee met in March indicates that the labor market remains strong and that economic activity rose at a solid rate.
    [Show full text]
  • The Fed in the Changing Room
    ECONOMIC POLICY NOTE 16/10/2017 The Fed in the changing room AGNIESZKA GEHRINGER President Trump will soon nominate new members to the Board of Governors of the Federal Reserve and the Federal Open Market Committee. The new nomination could lead to a change in the Fed’s approach to monetary policy. Consistency and predictability are not the strengths of this US president. Hence, his appointments may well induce some market volatility. The US Federal Reserve is in a changing room. campaign has not been heard since. The Three out of seven positions on its Board of president has even turned to “like low rates”.1 Governors are vacant. Moreover, the term of This leaves a good chance for a candidate Janet Yellen chairing the Board and thus the promising a continuation of the cautious Federal Open Market Committee (FOMC) monetary policy course under Janet Yellen. But expires on January 31, 2018. President Donald other options remain on the cards. Trump could grasp the opportunity to shape the US monetary policy in the foreseeable future How might the FOMC change in 2018? and nominate candidates – both for the Board The FOMC consists of twelve members: seven of Governors and among them for the FOMC- members of the Board of Governors of the chair – who best suit his policy preferences. Federal Reserve System; the president of the There are some uncertainties in the process. Federal Reserve Bank of New York; and four of Most importantly, it is difficult to figure out the remaining eleven Reserve Bank presidents, which exact policy priorities would drive the who serve one-year terms on a rotating basis.2 president’s choice.
    [Show full text]
  • Commercial Real Estate Grapples with Going Green in Recession
    Print California Real Estate Journal Online Article Page 1 of 4 California Real Estate Journal Newswire Articles www.carealestatejournal.com © 2009 The Daily Journal Corporation. All rights reserved. • select Print from the File menu above CREJ FRONT PAGE • Jan. 26, 2009 Commercial Real Estate Grapples With Going Green in Recession California developers and manufacturers await details of Obama's stimulus plan Developers and manufactures await details of Obama's stimulus plan By KEELEY WEBSTER CREJ Staff Writer Even as U.S. President Barack Obama has been making headlines for his "green team" and a proposal to invest $150 billion over the next 10 years in green energy, Hayward-based Optisolar was forced to lay off 130 employees, or 50 percent of its workforce. Optisolar Inc., a vertically integrated manufacturer of solar panels, is down, but not out. "We are hopeful that the new attitude in Washington will enable us to come out of this holding pattern," said Alan Bernheimer, the company's vice president of corporate communications. The employees who were laid off were hired to deal with the exponential growth the company was expecting after the interest in all-things-green took off and a series of federal, state and local policies and legislative initiatives took form to promote green business and development. But when Optisolar was not able to access the equity investment it needed for its planned manufacturing expansion, it was forced to trim staffing to what the current state of the business could support, Bernheimer said. That state includes a solar farm under construction in Canada.
    [Show full text]
  • Chairman Jay Clayton, February 1, 2018 to February 28, 2018
    Chairman Jay Clayton Public Calendar February 1, 2018 to February 28, 2018 Thursday, February 1, 2018 9:00 am Meeting with staff 9:30 am Meeting with staff 10:00 am Meeting with staff 10:30 am Meeting with staff 12:00 pm Meeting with Commissioner 1:00 pm Meeting with Silicon Valley Bank, including: Greg Becker, CEO, and Michael Zuckert, General Counsel; and Kara Calvert, Partner, Franklin Square Group 2:00 pm Closed Commission Meeting 2:30 pm Meeting with staff 3:00 pm Meeting with staff 3:30 pm Meeting with staff Friday, February 2, 2018 8:30 am Phone call with Senator Sherrod Brown 9:00 am Meeting with the Capital Market Authority (CMA) of Saudi Arabia, including: Ms. Mona Al-Nemer, Manager, Investment Products Development Department; and Ms. Hanan Al-Shehri, Officer, Investment Products Development Department 11:30 am Speaking engagement at the Mid-Atlantic Security Traders Association’s 2018 Winter Conference Monday, February 5, 2018 11:00 am Meeting with Commissioner 12:00 pm Meeting with staff 2:00 pm Meeting with Greg Gilman, President, National Treasury Employees Union Chapter 293 4:00 pm Meeting with Senator Heidi Heitkamp 6:30 pm Meeting with Tom Ayres, Department of the Air Force General Counsel Nominee Tuesday, February 6, 2018 8:30 am Phone call with Jerome Powell, Governor, Federal Reserve Board 10:00 am Hearing before the Senate Committee on Banking, Housing, and Urban Affairs 2:00 pm Meeting with staff 2:30 pm Meeting with staff 3:00 pm Meeting with staff 4:00 pm Meeting with Commissioner 4:45 pm Meeting with Commissioner
    [Show full text]
  • Weekly Economic Commentary
    LPL FINANCIAL RESEARCH Weekly Economic Commentary December 10, 2012 Festive Fed FAQ John Canally, CFA Why Write About the Federal Reserve (Fed) This Week When the Economist Fiscal Cliff Is Looming? LPL Financial The Fed may deliver the most important policy announcement of the week, given the ongoing behind-the-scenes fiscal policy debate in Washington. The Fed continues to play a key role in markets and the economy, and that Highlights will continue into 2013 and beyond. Although Fed Chairman Ben Bernanke We expect the Federal Reserve (Fed) to has said that the Fed cannot offset the impact of the fiscal cliff, Fed continue Operation Twist at this week’s policymakers are keenly aware that they remain the “only game in town” Federal Open Market Committee (FOMC) when it comes to simulative policy. meeting. Before ending quantitative easing (QE), the Fed has repeatedly said it is looking What Is the Schedule of Events for the Fed This Week? for “sustained and substantial” improvement in the labor market. The Fed holds its eighth and final Federal Open Market Committee (FOMC) meeting of 2012 this Tuesday and Wednesday, December 11 – 12. The The Fed’s communication policy is likely to be at the heart of the agenda. meeting will be followed by an FOMC statement at 12:30 PM ET, the FOMC’s latest economic and Fed funds projections at 2:00 PM ET, and Looking ahead, the rotation to new FOMC members in January 2013 is unlikely to Chairman Bernanke’s final press conference of 2012 begins at 2:15 PM ET.
    [Show full text]
  • Chairman Jay Clayton, October 1, 2020 to October 31, 2020
    Chairman Jay Clayton Public Calendar October 1, 2020 to October 31, 2020 Thursday, October 1, 2020 9:00 am Phone call with Robert Ophele, Chairman, French Financial Markets Authority 10:15 am Speaking engagement, Rosenblatt Securities Global Exchange Leader Conference 11:30 am Speaking engagement, Webinar “Two Sides of the American Coin” with Acting Comptroller of the Currency Brian Brooks 1:00 pm Meeting with staff 2:30 pm Meeting with staff 3:00 pm Meeting with staff 3:30 pm Meeting with staff 4:00 pm Meeting with staff Monday, October 5, 2020 7:00 am Financial Stability Board (FSB) Meeting 10:00 am Meeting with staff 10:30 am Meeting with staff 11:30 am Fixed Income Market Structure Advisory Committee (FIMSAC) Meeting 1:00 am Town Hall meeting with SEC employees 2:30 pm FIMSAC Meeting 4:15 pm Phone call with Publish What You Pay, including: Kathleen Brophy, Director; Zorka Milin, Senior Legal Advisor, Global Witness; Joseph Kraus, Transparency & Accountability Policy Director; Isabel Munilla, Extractive Industries Transparency Policy Lead, Oxfam America; and Michelle Harrison, Staff Attorney, Earthrights International 4:30 pm Phone call with Securities Industry and Financial Markets Association (SIFMA), including: Ken Bentsen, Chief Executive Officer; Joe Seidel, Chief Operating Officer; Ira Hammerman, General Counsel; Tom Price, Managing Director, Operations Technology; Aseel Rabie, Associate General Counsel; and Melissa MacGregor, Associate General Counsel 5:00 pm Phone call with Heath Tarbert, Chairman, Commodity Futures Trading
    [Show full text]
  • Investment Insights
    CHIEF INVESTMENT OFFICE Investment Insights AUGUST 2017 Matthew Diczok A Focus on the Fed Head of Fixed Income Strategy An Overview of the Federal Reserve System and a Look at Potential Personnel Changes SUMMARY After years of accommodative policy, the Federal Reserve (Fed) is on its path to policy normalization. The Fed forecasts another rate hike in late 2017, and three hikes in each of the next two years. The Fed also plans to taper reinvestments of Treasurys and mortgage-backed securities, gradually reducing its balance sheet. The market thinks differently. Emboldened by inflation persistently below target, it expects the Fed to move significantly more slowly, with only one to three rate hikes between now and early 2019. One way or another, this discrepancy will be reconciled, with important implications for asset prices and yields. Against this backdrop, changes in personnel at the Fed are very important, and have been underappreciated by markets. The Fed has three open board seats, and the Chair and Vice Chair are both up for reappointment in 2018. If the administration appoints a Fed Chair and Vice Chair who are not currently governors, then there will be five new, permanent voting members who determine rate moves—almost half of the 12-member committee. This would be unprecedented in the modern era. Similar to its potential influence on the Supreme Court, this administration has the ability to set the tone of monetary policy for many years into the future. Most rumored candidates share philosophical leanings at odds with the current board; they are generally hawkish relative to current policy, favor rules-based decision-making over discretionary, and are unconvinced that successive rounds of quantitative easing were beneficial.
    [Show full text]
  • Between a Rock and a Hard Place: the CRA—Safety and Soundness Pinch
    The rising costs of complying with super- visory demands have brought the issue of regu- Between a Rock latory burden to the attention of both law- makers and bank regulators. But one relatively underappreciated aspect of regulatory burden is and a Hard Place: the potential for the supervisory process to impose conflicting demands on banks. In October 1977, Congress passed the The CRA—Safety and Community Reinvestment Act (CRA) as Title VIII of the Housing and Community Development Act. The legislation was designed to encourage Soundness Pinch commercial banks and thrifts to help meet the credit needs of their communities, including low- Jeffery W. Gunther and moderate-income neighborhoods, in a manner consistent with safe and sound banking prac- tices. In 1989, the Financial Institutions Reform, Recovery, and Enforcement Act established four possible composite CRA ratings: 1—outstanding; 2—satisfactory; 3—needs to improve; and 4— substantial noncompliance. Federal agencies anking entails risk, historically considered twelve factors in decid- B ing how well financial institutions were meeting but can regulators the goals of the CRA (see Garwood and Smith 1993). Revised regulations announced in April decide how much 1995 replaced these factors with three tests—of lending, investment, and service—with the risk is appropriate? lending test receiving the most weight.1 Examiners have always focused on lend- ing activity in determining a bank’s CRA rating. The revised CRA rules reflect this focus, as it is difficult for a bank to receive an overall satis- factory rating unless its lending performance is satisfactory. In rating CRA compliance, regula- tors assess such factors as a bank’s overall lend- ing activity in its market area and the degree to which the bank provides credit throughout its market, with particular emphasis on low- and moderate-income neighborhoods and individu- als as well as small businesses and farms.
    [Show full text]
  • THE RIDE Larger, Less Crowded Areas Seeing Faster Growth
    FEDERAL RESERVE BANK OF KANSAS CITY / SPRING 2019 ENJOYING THE RIDE Larger, less crowded areas seeing faster growth ANNUAL REPORT EDITION Stability and Stewardship Why Is Wage Growth Low? | Diversity and Inclusion Report | New Tenth District Directors TEN MAGAZINE | | SPRING 2019 A FEDERAL RESERVE BANK OF KANSAS CITY / SPRING 2019 FEATURES VOLUME 14 • ISSUE 4 • ISSN 1554-7469 SENIOR VICE PRESIDENT Diane Raley VICE PRESIDENT Krissy Young ASSISTANT VICE PRESIDENT & PRODUCTION ADVISOR Lowell Jones 20 ASSISTANT VICE PRESIDENT & FASTER GROWTH Year-over-year percent change, seasonally adjusted PUBLIC INFORMATION OFFICER Over several years, locations with populations of 500,000 Bill Medley6 to 3 million often grew faster than the national6 rate. EDITOR4 4 Stan Austin MAGAZINE2 DESIGNER 2 Alison Reichert 0 WHY IS WAGE GROWTH0 SO LOW? MANAGING EDITOR Despite continued improvement Rick Babson-2 in labor market -conditions,2 low productivity growth affects CREATIVE DIRECTOR compensation. Angela -Anderson4 12 -4 1998 2001 2004 2007 2010 2013 2016 CONTENT CONTRIBUTORS Real compensation per hour Su Bacon, Gary Barber, Sam Chapman, Cynthia Edwards, David McNeese, Sarah Pope, Marlina Yates DIVERSITY AND INCLUSION In its yearly report to Congress, the RESEARCH CONTRIBUTORS Kansas City Fed outlines how its Jun Nie, Jordan Rappaport, business practices represent the range Willem Van Zandweghe of backgrounds and experiences 30 across the Tenth District. TEN magazine is a quarterly publication of the Federal Reserve Bank of Kansas City focused on the connection between the Bank’s research and the Tenth Federal Reserve District. TEN features articles on the Federal Reserve’s history, structure and operations. The views and opinions expressed in TEN are not 2018 ANNUAL REPORT necessarily those of the Federal Reserve Bank A detailed look at Bank operations, of Kansas City, the Federal Reserve System, its Tenth District officers, directors, advisory governors, officers or representatives.
    [Show full text]
  • NY Fed President ❖ Lael Brainard – Governor ❖ Randall Quarles – Vice Chair for Supervision ❖ Michelle Bowman-Governor
    1 2 Interest Rates – from 3000 BC Source: Business Insider 3 Yield Curve 101 ❖ Fed Funds – 2.40% (2.25%-2.50%) ❖ +75 bps ❖ =3.15% 2-year note yield (2.52%) ❖ +100 bps ❖ =4.15% 10-year note yield (2.66%) ❖ +50 bps ❖ =4.40% 30-year bond yield (3.00%) ❖ Yield Curve is Flat 4 Treasury Yield Curve-2018-2019 Source: Bloomberg 5 Treasury Yield Curve 2018-2019 Source: Bloomberg 6 U.S. vs. German Yield Curves Source: Bloomberg 7 Source: Walt Handelsman - Newsday 8 Economic Growth – 2004-2018 Source: BEA & Bloomberg 9 Economic Growth – 1947-2018 Source: BEA & Bloomberg 10 11 Key to Economy – Innovative New Jobs 12 Beneficiaries of Economic Innovation 13 Measures of Unemployment Source: Bureau of Labor Statistics •U-3: Total unemployed, as a percent of the civilian labor force (this is the definition used for the official unemployment rate). •U-6: Total unemployed, plus all marginally attached workers, plus total employed part time for economic reasons, as a percent of the civilian labor force plus all marginally attached workers. 14 U.S. Unemployment Rate U-3 Source: BLS and Bloomberg 15 U.S. Unemployment Rate U-6 Source: BLS and Bloomberg 16 U.S. Non-farm Payrolls (2009-Present) Source: BLS and Bloomberg 17 U.S. Non-farm Payrolls (1939-Present) Source: BLS and Bloomberg 18 Weekly Initial Jobless Claims(2009-Present) Source: DOL and Bloomberg 19 Weekly Initial Jobless Claims(1967-Present) Source: DOL and Bloomberg 20 21 German Inflation – 1918-1923 Source: BEA & Bloomberg 22 Wages vs Inflation (PCE Core YoY) – 2007-2019 Source: BEA, BLS & Bloomberg
    [Show full text]