U.S. Consumer Spending Increases 0.2% in January
“Consumers shielded the economy from global headwinds for most of 2019 but they won’t prove immune to the coronavirus outbreak."
Banks’ Stress Tests to Focus on Leveraged Lending
The 2020 tests will give the Fed "increased information on how leveraged loans and collateralized loan obligations may respond to a recession."
Banks Expect Tighter Consumer Loan Standards
Significant net shares of banks expect performance to deteriorate in 2020 for both credit card and auto loans to nonprime borrowers, according to the Fed.
U.S. Consumer Prices Hit Highest Level in a Year
The CPI rose 2.1% in November on a year-on-year basis but the Fed "doesn’t expect inflation to sharply exceed its 2% goal anytime soon."
U.S. Labor Costs Growth Lowered to 2.5% for Q3
The sharp downward revision suggests inflation will continue to run below the Federal Reserve’s 2% target.
BIS Spotlights Role of Large Banks in Repo Shock
The banks' diminished ability to supply funding at short notice could have "amplified the repo rate reaction" in September, a report says.
U.S. Producer Prices Post Biggest Gain in 6 Months
"Inflation needs to accelerate noticeably for the Fed to consider raising interest rates, and that doesn’t appear to be in the cards."
Fed Cuts Interest Rates Again in ‘Insurance’ Move
“We took this step to help keep the economy strong in the face of global developments and to provide some insurance against ongoing risks."
Fed OKs Rollbacks of Post-Crisis Banking Rules
The Board of Governors voted 4-1 in favor of the changes, with the dissenter saying they would weaken core safeguards.
Fed to Buy Treasuries to Ease Funding Strains
The Fed's move to grow its balance sheet comes after last month's “unexpectedly intense volatility” in the funding markets.
Fed to Cut Rates Again This Year, S&P Predicts
Another cut in December is "contingent upon an escalation in trade tensions, further weakness in global growth, and increased geopolitical tensions."