(1) February 2018 Monetary Policy Hearing.
Monetary Policy Report, February 2018
The Monetary Policy Report hearings will be held on February 28, 2018, and March 1, 2018. It will be the first for the new Chairman of the Board, Jerome Powell.
|U.S. House of Representatives||U.S. Senate|
|February 28, 2018, 10:00 a.m., House Financial Services Committee||March 1, 2018, 10:00 a.m., Senate Banking Committee|
|Press release: https://financialservices.house.gov/news/documentsingle.aspx?DocumentID=402987||Press release:|
(2) The Federal Reserve, millionaires, and skewed policymaking against the nonmillionaire people of the United States. The Congress must supervise the Federal Reserve and monetary policy in a more-stringent manner to ensure that policy is made for all, not just the rich.
There is an aura of authority of the Federal Reserve and monetary policy. I think a lot of that is due to the overly complicated way that the social science of economics is presented. Moreover, I think that the delegation of authority can be abused because the monetary policymakers are unelected and somewhat unaccountable for its decisions. (Yes, Congress does have a big say, as monetary policy is Congress’ power under the U.S. Constitution.) And, the so-called policymakers come overwhelmingly from the rich. The policy choices reflect this bias.
For example, I am doing research on the Federal Reserve, globalization, and long-term unemployment. I happened to find a 2004 FRBSF Economic Letter that provides one view on this topic. It is clear that Robert Parry, then the President and CEO of the Federal Reserve Bank of San Francisco, felt comfortable with the changes (as it was likely not going to negatively affect him or people he knew). The way he casually mentioned the Depression-era unemployment insurance (up to 26 weeks) was sufficient that in the face of unemployment caused by offshoring jobs permanently outside the United States was an unwelcome and bracing read.
Jason Furman, a millionaire and Harvard professor, praised globalization as providing lower prices. Unaccounted for is the massive costs incurred for that “low price”–long-term unemployment (that is unemployment that lasts longer than 26 weeks (perhaps even months or years) which the person will have to bear the complete cost of without any assistance. It is easy for a millionaire to gloss over these tragic details.
These examples amplify the toxic effects of millionaires (and their economists) as policymakers in that the story of regular people of the United States is (unacceptably) ignored or forgotten!
The Federal Reserve Board (Board) publishes a weekly digest of its activities on its website. The digest is called the H.2 Release and is published every Thursday. The release for the week ending February 10, 2018, is below.
H.2 Release–Actions of the Board, Its Staff, and the Federal Reserve Banks; Applications and Reports Received
|Bank Holding Companies||Howard Bancorp, Inc., Ellicott City, Maryland — to acquire First Mariner Bank, Baltimore.
-Approved, February 9, 2018
|Forms||Forms — final Board review to extend without revision the Disclosure Requirements Associated with the Consumer Financial Protection Bureau’s Regulation DD (FR DD).
-Approved, February 9, 2018
Forms — initial Board review to extend without revision the Policy Impact Survey (FR 3075).
Forms — final Board review to complete the transition of the Federal Reserve’s Annual Company-Run Stress Test Report for State Member Banks, Bank Holding Companies, and Savings and Loan Holding Companies with Total Consolidated Assets Greater Than $10 Billion and Less Than $50 Billion (FR Y-16) to a Federal Financial Institutions Examination Council reporting form (FFIEC 016).
Forms — final Board review to extend without revision the Recordkeeping and Disclosure Requirements Associated with Securities Transactions Pursuant to Regulation H (Reg H-3).
|Enforcement||CBOA Financial, Inc., Tucson, Arizona — written agreement dated May 28, 2014, terminated February 2, 2018.
-Announced, February 6, 2018
NBRS Financial, Rising Sun, Maryland — issuance of a notice of intent to prohibit against Jacob H. Goldstein, a former institution-affiliated party.
U.S. Bancorp, Minneapolis, Minnesota, and USB Americas Holdings Company — issuance of a consent cease-and-desist and order of assessment of a civil money penalty.
Federal Reserve Board: Balance Sheet (H.4.1 Release)
The Board publishes data of factors affecting reserve balances. The digest is called the H.4.1 Release, and they are published every Thursday (or the next business day if the publication date falls on a federal holiday). The release for February 15, 2018, is below.
[Note: The blog will cover the line titled “Total Factors Supplying Reserve Funds.”]
H.4.1 Release–Factors Affecting Reserve Balances
Total factors supplying reserve funds (as of February 14, 2018): $4,482,155 (in millions of dollars). (On September 26, 2007, this amount was $900,473 (in millions of dollars)).
(See the release for further information.)