A tight labor market, inflation running well above the Federal Reserve’s 2% target and a deteriorating near-term inflation outlook prompted the Federal Open Market Committee to move ahead with a 75 basis point rate-hike in June—the highest rate increase in 28 years—according to minutes released today.
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The Fed also confirmed the new timeline for implementation based on review of public comments: March 10, 2025.
Powell added that he does not foresee a recession in the near term, emphasizing the strong economy and businesses “in good shape.”
CFPB Director Rohit Chopra today announced an advance notice of proposed rulemaking focusing on credit card late fees.
Financial market stresses do not appear to have exacerbated the negative effects on broader economic activity or created substantial pressure on banks.
In a move to slow the specter of inflation, the Federal Reserve today increased the target range for the federal funds rate by three-quarters of a percentage point to 1.5% to 1.75%—the central bank’s most aggressive hike since 1994.
According to ABA, at present, a U.S. CBDC doesn’t solve a specific financial problem or respond to a pressing economic need.
While uncertainty surrounds the U.S. economy at present, America’s banks remain healthy and prepared to support the communities they serve.
The Federal Reserve signaled that it intends to delay the implementation of the International Organization for Standardization’s 20022 message format for the Fedwire Funds Service to sometime in the first quarter of 2025. T
The creation of a central bank digital currency “should only be pursued as a final option to meet clearly defined public policy goals that cannot be achieved through payments innovations that leverage existing digital dollars,” the American Bankers Association told the Federal Reserve in a comment letter.