Federal Reserve Board: H.2 Release for Week Ending January 5, 2018; H.4.1 Release (Balance Sheet) for Week Ending January 10, 2019

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 December 29, 2018, is below.

H.2 Release–Actions of the Board, Its Staff, and the Federal Reserve Banks; Applications and Reports Received

Category Action Taken
Forms Forms — initial Board review to extend without revision the Recordkeeping and Disclosure Requirements Associated with Loans Secured by Real Estate Located in Flood Hazard Areas (Reg H-2).

-Proposed, January 4, 2019

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 January 10, 2019, 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 January 9, 2019):  $4,104,339 (in millions of dollars). (On September 26, 2007, this amount was $900,473 (in millions of dollars)).

(See the release for further information.)

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Federal Reserve Board: H.2 Release for Week Ending December 29, 2018; H.4.1 Release (Balance Sheet) for Week Ending January 3, 2019

Of Note

(1) Jerome Powell and unemployment. I have been consistently displeased with the millionaire-centered monetary policy of the Federal Reserve Board. Jerome Powell, a multimillionaire who does not need to have a job, cavalierly discusses this point. For those that have to work, or depend on others working to bring in money to the household, his views are, at best, disturbing and immoral.

Jerome Powell made a comment at the 2019 American Economic Association Conference in Atlanta, Georgia, at the session titled “Federal Reserve Chairs: Joint Interview” (Credit to a Twitter post written by Matthew Boes, Bloomberg):

We need the concept of a natural rate of unemployment … we need to have some sense of whether unemployment is high, low or just right.

Comment: Powell’s net worth is approximately $112 million. Also, the Board Chairman’s view is not surprising. Previously, Federal Open Market Committee (FOMC) members laughed at the unemployed.

net worth fed chairs

This is what Coretta Scott King has to say on unemployment (a quote in David P. Stein’s article) in Stein’s tweet:

It is time we put a stop to this antisocial and antihuman strategy. The unemployed are not pawns to be sacrificed in some economic chess game. – Coretta Scott King, Hearing before the Joint Economic Committee, 1975.


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 December 29, 2018, is below.

H.2 Release–Actions of the Board, Its Staff, and the Federal Reserve Banks; Applications and Reports Received

Category Action Taken
Supervision and Regulation National Flood Insurance Program (NFIP) — interagency statement on financial institutions issuing loans when the NFIP is unavailable.

-Announced, December 28, 2018

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 January 3, 2019, 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 January 2, 2019):  $4,106,185 (in millions of dollars). (On September 26, 2007, this amount was $900,473 (in millions of dollars)).

(See the release for further information.)

U.S. Judiciary: Chief Justice John Roberts Issues 2018 Year-End Report

John Roberts, Chief Justice of the United States, issued a 2018 year-end report on the judiciary.

The Chief Justice in his annual report focused on three items:

(1) A discussion of the the benefits of having judicial law clerks (attorneys) working with judges. (Pages 1-4.)

(2) A discussion of the findings of the Federal Judiciary Workplace Conduct Working Group–no pervasive inappropriate conduct but more than a few instances involving law clerks. (Pages 4-10.)

Comment:  While the second statement sounds nice in principle, it is grossly lacking in fact because the members of the Supreme Court are not covered by the judiciary’s code of conduct.

This Code applies to United States circuit judges, district judges, Court of International Trade judges, Court of Federal Claims judges, bankruptcy judges, and magistrate judges. Certain provisions of this Code apply to special masters and commissioners as indicated in the “Compliance” section. The Tax Court, Court of Appeals for Veterans Claims, and Court of Appeals for the Armed Forces have adopted this Code.

It is not correct for the Chief Justice to leave this fact out of the discussion, as well as his approach to handling the issue on the Supreme Court level. Like the previous year, this omission is a glaring gash on this report. The Chief Justice merely could have mentioned his 2011 statement on this issue.

(3) The Chief Justice recognized the work judiciary employees did in providing emergency aid in areas with natural disasters. (Pages 10-11.)

[Note 1: Judicial pay has remained at 2018 levels for 2019. See Executive Order __, schedule 7) (https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/pay-executive-order-2019-adjustments-of-certain-rates-of-pay.pdf).

Position Pay in 2016 (in dollars) Pay in 2017 (in dollars) Pay in 2018 and 2019 (in dollars)
Chief Justice of the United States 260,700 263,300 267,000
Associate Justices of the Supreme Court 249,300 251,800 255,300
Circuit Judges 215,400 217,600 220,600
District Judges 203,100 205,100 208,000
Judges of the Court of International Trade 203,100 205,100 208,000

]

In the appendix to the report, the Chief Justice provides and explanation of the workload of the judiciary. I will focus on the Supreme Court’s workload. Six per curiam decisions were issued during the 2017 Term.

  2014 2015 2016 2017
Filings 7033 6475 6305 6315
In forma pauperis 5488 4926 4755 4595
Paid docket 1545 1549 1550 1720
Cases:        
argued 75 82 71 69
disposed 75 70 68 63
signed opinions 66 62 61 59

Federal Reserve Board: H.2 Release for Week Ending December 22, 2018; H.4.1 Release (Balance Sheet) for Week Ending December 27, 2018

Of Note

(1) The so-called booming U.S. economy (not so for older people in the United States). In mid-life, some are enduring broken career trajectories, unemployment/underemployment, age discrimination, and ruined finances (and a weak “safety net”).

See the ProPublica article by Peter Gosselin “If You’re over 50, Chances Are the Decision to Leave a Job Won’t Be Yours.”

Key quote: “Through 2016, our analysis found that between the time older workers enter the study and when they leave paid employment, 56 percent are laid off at least once or leave jobs under such financially damaging circumstances that it’s likely they were pushed out rather than choosing to go voluntarily.”

(2) Private equity firms use Bankruptcy Code to get rid of workers, pension plans. See a Washington Post article by Peter Whoriskey “As a Grocery Chain is Dismantled, Investors Recover Their Money. Worker Pensions are Short Millions.”

Key quote: ” ‘These private-equity firms buy a company, plunder it of any assets, and then send it into bankruptcy without paying employees,” said Eileen Appelbaum, an economist at the Center for Economic and Policy Research who studies private-equity transactions. “To anyone but a bankruptcy court, this looks like a swindle.'”

(3) The Federal Reserve posted a research note on unemployment dynamics. The reason why some people long-term unemployed cannot find work is their skills are not “in demand.” Writers conclude that there is no policy that can help these suffering people.

 

 

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The writers, Hie Joo Ahn and James Hamilton, explain the implications for policy. (Emphasis in bold, mine)

What are the implications for policy? When product demand falls, firms may first choose to shed the least productive workers and those whose skills are not currently in demand. Expansionary fiscal or monetary policy that boosts aggregate demand might help those individuals return to work. On the other hand, strong labor demand or an expansionary policy cannot really change an individual’s characteristics, and do not reverse skill-biased technological change. Thus, employment recoveries will be slower, for a given amount of labor demand, if the share of type L unemployment is higher. As a result, increases in the share of type L unemployment can be thought of as adverse shocks to the functioning of the labor market.

Comment: The follow-up question is what is to be done to address this situation of people being placed out of work? I do not like the implied assertion that these human beings are used up and fit to be thrown away. It is a disgusting and unacceptable assertion. Why do these economists refuse to speak to the unemployed directly through the One-Stop Career Centers?

Citation for paper: Ahn, Hie Joo, and James Hamilton (2018). “Factors in Unemployment Dynamics,” FEDS Notes. Washington: Board of Governors of the Federal Reserve System, December 21, 2018, https://doi.org/10.17016/2380-7172.2274.


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 December 22, 2018, is below.

H.2 Release–Actions of the Board, Its Staff, and the Federal Reserve Banks; Applications and Reports Received

Category Action Taken
Currency Federal Reserve Notes — currency operating budget for 2019 and multi-cycle capital budget.

-Approved, December 12, 2018

(A/C)

Forms Forms — initial Board review to extend with revision the Complex Institution Liquidity Monitoring Report (FR 2052A).

-Proposed, December 20, 2018

Personnel Division of Research and Statistics — appointment of Gianni Amisano, Charles Fleischman, Li Geng, Paul Lengermann, Byron Lutz, Raven Molloy, Matthias Paustian, Gustavo Suarez, and Clara Vega as assistant directors and chiefs; and appointment of Norman Morin as assistant director.

-Announced, December 17, 2018

Regulations and Policies Current Expected Credit Loss (CECL) Methodology — publication of an interagency final rule to address CECL, including an option to phase in the day-one regulatory capital effects over three years, and make conforming changes to other regulations.

-Approved, December 20, 2018

 

Depository Institution Management Interlocks Rules — publication with request for comment of an interagency notice of proposed rulemaking to raise the asset thresholds below which depository organizations may have management interlocks without prior approval.

-Approved, December 13, 2018

(A/C)

Expanded Examination Cycle — publication of an interagency final rule to expand the number of insured depository institutions and U.S. branches and agencies of foreign banks eligible for an 18-month on-site examination cycle, rather than a 12-month cycle, in accordance with the Economic Growth, Regulatory Relief, and Consumer Protection Act.

-Approved, December 20, 2018

 

Volcker Rule Regulations — publication with request for comment of an interagency notice of proposed rulemaking to amend the agencies’ respective regulations implementing the proprietary trading, hedge fund, and private equity fund restrictions of the Volcker rule, in accordance with the Economic Growth, Regulatory Relief, and Consumer Protection Act.

-Approved, December 14, 2018

(A/C)

Supervision and Regulation Current Expected Credit Loss (CECL) Methodology and Stress Testing — statement that the Board will maintain the current modeling framework for loan allowances in its supervisory stress test through 2021.

-Announced, December 21, 2018

 

Resolution Plans — (1) determinations by the Board and Federal Deposit Insurance Corporation (FDIC) on the resolution plans submitted by four foreign-based banking organizations, Barclays Bank PLC, Credit Suisse Group A.G., Deutsche Bank AG, and UBS Group AG, under the Dodd-Frank Act and (2) publication of final guidance by the Board and FDIC for the 2019 and subsequent resolution plans to be submitted by the eight largest, most complex U.S. banking organizations.

-Approved, December 19, 2018

Enforcement First Community Bank, Beemer, Nebraska — issuance of a consent order of prohibition against Diane Ludwig, a former institution-affiliated party of First Community Bank.

-Announced, December 20, 2018

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 December 27, 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 December 26, 2018):  $4,123,322 (in millions of dollars). (On September 26, 2007, this amount was $900,473 (in millions of dollars)).

(See the release for further information.)

Federal Reserve Board: H.2 Release for Week Ending December 15, 2018; H.4.1 Release (Balance Sheet) for Week Ending December 20, 2018

Of Note

The Fed Seeks to Increase Unemployment to Thwart Inflation.

Comment: For whose benefit? The vulnerable or the rich? What bothers me considerably about the Federal Open Market Committee’s (FOMC) monetary policy is the agency’s exclusive focus on the rich, at the clear expense of the rest of the country. This is the result of the FOMC and the Federal Reserve Board being the reserve of the wealthy and those that promote this exclusive focus.

Bloomberg op-ed by Narayana Kocherlakota.

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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 December 15, 2018, is below.

H.2 Release–Actions of the Board, Its Staff, and the Federal Reserve Banks; Applications and Reports Received

Category Action Taken
Forms Forms — initial Board review to implement the New Hire Information Collection (FR-27).

-Proposed, December 11, 2018

Enforcement Farmers State Bank, Pine Bluffs, Wyoming — issuance of notices of intent to prohibit Frank Smith and Mark Kiolbasa, institution-affiliated parties of Farmers State Bank, from the banking industry.

-Approved, December 11, 2018

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 December 20, 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 December 19, 2018):  $4,132,011 (in millions of dollars). (On September 26, 2007, this amount was $900,473 (in millions of dollars)).

(See the release for further information.)

Federal Employees: President Donald Trump Grants Full-Day Leave on Christmas Eve 2018

President Donald Trump issued an Executive Order to grant Executive Branch federal employees an full-day excuse from duty on Christmas Eve (https://www.whitehouse.gov/presidential-actions/executive-order-providing-closing-executive-departments-agencies-federal-government-december-24-2018/).

Federal Reserve Board: H.2 Release for Week Ending December 8, 2018; H.4.1 Release (Balance Sheet) for Week Ending December 13, 2018

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 December 8, 2018, is below.

H.2 Release–Actions of the Board, Its Staff, and the Federal Reserve Banks; Applications and Reports Received

Category Action Taken
Bank Holding Companies Cadence Bancorporation, Houston, Texas — to acquire State Bank Financial Corporation, Atlanta, Georgia, and indirectly acquire State Bank and Trust Company, Macon.

-Approved, December 6, 2018

 

Synovus Financial Corp., Columbus, Georgia — to merge with FCB Financial Holdings, Inc., Weston, Florida, and indirectly acquire Florida Community Bank, N.A.; and for Synovus Bank, Columbus, to merge with Florida Community Bank, N.A. and thereby establish branches.

-Approved, December 6, 2018

Forms Forms — initial Board review to extend with revision the FR 2248, FR 2320, FR Y-8, FR 2644, FR 2886b, and the following families of reports: (1) FR Y-9 (FR Y-9C, FR Y-9LP, FR Y-9SP, FR Y-9ES, and FR Y-9CS), (2) FR Y-7 ( FR Y-7N, FR Y-7NS, and FR Y-7Q), (3) FR Y-11 (FR Y-11 and FR Y-11S), and (4) FR 2314 (FR 2314 and FR 2314S).

-Proposed, December 4, 2018

 

Forms — final Board review to extend with revision the Procurement Solicitation Package (FR 1400).

-Approved, December 6, 2018

Supervision and Regulation Bank Secrecy Act/Anti-Money-Laundering (BSA/AML) — interagency statement encouraging depository institutions to explore innovative approaches to meet their BSA/AML compliance obligations and further strengthen the financial system against illicit financial activity.

-Announced, December 3, 2018

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 December 13, 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 December 12, 2018):  $4,135,976 (in millions of dollars). (On September 26, 2007, this amount was $900,473 (in millions of dollars)).

(See the release for further information.)