The unprecedented amount of cash the Federal Reserve has pumped into the financial system is proving more powerful for money-market rates than Chair Janet Yellen’s signals she will start turning off the spigot.
Divergent interests between Germany, the European Central Bank and private investors are delaying a solution to the euro region’s debt crisis, according to Brown Brothers Harriman & Co.’s Lena Komileva.
A strong euro will boost the risk of default in countries such as Portugal and threaten Europe’s monetary union as the region’s central bank prepares to raise interest rates, according to Brown Brothers Harriman & Co.
The new financial regulation law gives the Federal Reserve chairman the authority to force banks to raise capital and tighten lending -- just as he’s trying to steer monetary policy in the opposite direction.
In November 2009, Senate Banking Committee Chairman Christopher Dodd advanced a radical proposal: to create a super-regulator that would take over most of the bank supervision that had been done by the Federal Reserve System, the Federal Deposit Insurance Corp. and other agencies.