Concerns about a slowdown in global growth and trade uncertainties remained prominent factors in the Federal Open Market Committee’s decision to cut interest rates by 25 basis points at the last FOMC meeting, according to minutes released yesterday.
Following action by the OCC yesterday, the FDIC proposed a rule stipulating that interest rates valid when the loan is made by a bank remain valid when the loan is transferred or sold.
The FDIC’s recent proposal to make changes to the national rate cap does not go far enough to address the problems with the current calculation methodology, ABA said in a comment letter today.
The Federal Open Market Committee announced today that it would cut interest rates for the second time this year.
The FDIC today proposed a new methodology for calculating the national rate and the national rate cap for specific deposit products.
As expected by analysts, the Federal Open Market Committee announced today that it would cut the target rage for the federal funds rate by a quarter of a point to 2 to 2.25% amid slowing global growth and mounting economic uncertainties.
Despite economic headwinds and uncertainties around the Federal Reserve’s next move on interest rates, the banking sector remains strong and healthy, American Bankers Association President and CEO Rob Nichols said today in an interview with Bloomberg TV.
In response to advocacy by ABA, the Federal Housing Finance Agency today published new data that banks may use in place of its Monthly Interest Rate Survey, which many lenders had used to benchmark interest rates on various mortgage products.
ABA’s Economic Advisory Committee—which is made up of 16 chief economists from some of the nation’s largest banks—today forecast that economic growth will continue through 2020 at an estimated rate of 2 percent.