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Securities and Exchange Commission member Daniel Gallagher says the Federal Reserve is pushing even deeper onto his agency’s turf than Congress intended when it rewrote the rules of financial regulation three years ago.
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Federal Reserve Bank of Richmond President Jeffrey Lacker said broker-dealer units of banks should have higher capital requirements than deposit-funded subsidiaries because the financial crisis demonstrated the risks that stem from a reliance on markets for financing.
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Federal Reserve Bank of Boston President Eric Rosengren said regional collaboration between cities and government agencies is a “crucial factor” in strengthening the economies of smaller cities.
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Federal Reserve policy makers may shift discussion away from when to reduce monetary stimulus, given data showing the economy is weakening, according to Pacific Investment Management Co.’s Mohamed A. El-Erian.
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Debate among Federal Reserve policy makers is shifting away from the timing of a reduction in bond buying to the need to extend record stimulus as inflation cools and 11.7 million Americans remain jobless.
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Boston Federal Reserve President Eric Rosengren said banks should hold more capital if they own a broker-dealer unit because such businesses pose greater risks during periods of financial stress.
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Treasuries are rallying by the most in nine months as signs of slowing growth lead Federal Reserve officials to examine the need to increase the bond-purchase program they use to support the economy.
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The Treasury’s auction of $29 billion of seven-year notes attracted the highest demand this year as investors looked past a report on weekly jobless claims that pointed to an improving U.S. labor market.
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Treasuries declined after a report showed fewer Americans than forecast filed first-time jobless claims last week, pointing to an improving labor market and sapping demand for haven assets.
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Federal Reserve Bank of Boston President Eric Rosengren said the central bank should press on with its bond-buying stimulus as the unemployment rate remains above its goal and inflation is below its objective.