Federal Reserve policy makers say they want to avoid a sudden increase in interest rates when the time comes to start unwinding record monetary easing. A shrinking federal budget deficit is likely to help them meet that goal.
The Federal Reserve announced an enforcement action against Bank of Montreal, Canada’s fourth- largest lender by assets, for “deficiencies” in compliance with anti-money laundering and Bank Secrecy Act rules and regulations.
U.S. households reduced debt during the first quarter by 1 percent to the lowest level since 2006, resuming a deleveraging trend in the wake of the financial crisis, according to the Federal Reserve Bank of New York.
Federal Reserve Bank of Philadelphia President Charles Plosser said unemployment will probably fall to 7 percent at the end of 2013 and he would favor reducing the Fed’s $85 billion monthly pace of bond purchases next month.
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.
Federal Reserve Bank of Philadelphia President Charles Plosser said the Dodd-Frank Act may not curb too-big-to-fail banks, and the current mechanism for unwinding failing financial companies may lead to taxpayer bailouts.