More than five months ago, the Federal Reserve and Office of the Comptroller of the Currency told some of the biggest banks to improve underwriting standards for non-investment-grade loans. The market is showing few signs of tightening as lenders chase lucrative fees.
Federal Reserve Bank of Dallas President Richard Fisher, who has supported scaling back of the Fed’s bond buying, cautioned that there are signs in financial markets indicating the program may be emboldening investors to take excessive risks.
U.S. stocks fell, erasing an early gain, and Treasuries rose on speculation the Federal Reserve is unlikely to slow the pace of stimulus cuts. European bonds rallied as Ukraine reached an agreement on early elections.
U.S. stocks fell, after the Standard & Poor’s 500 Index climbed to within three points of a record, as Federal Reserve officials indicated the central bank is unlikely to slow the pace of stimulus cuts.