Dueling Fed Officials Argue Over Rate Cuts

Phil Hall

Sep 04, 2019

The leadership ranks of the Federal Reserve displayed a rare view of the internal tumult that is shaping the debate on whether the central bank should cut rates again.

St. Louis Fed President James Bullard called for a rate cut of half-a-percentage point. In an interview with Reuters, he insisted the Fed needs to stay ahead of financial market expectations for a cut and the unrest created by the state of the global economy.

“We are too high,” Bullard said, adding that the Fed’s target policy rate of between two percent and 2.25 percent was higher than the current yield of all U.S. Treasury securities.

However, Boston Fed President Eric Rosengren–who was one of two dissenters in the July meeting of the central bank’s Federal Open Market Committee that resulted in a rate cut–used a speech before educators and students in Easton, Mass., to insist there was no need for using rate cuts as a tool to offset perceived economic risks.

“As long as we are growing around two percent, I don’t see nearly as much of a need for taking immediate policy action,” he said.

The central bank meets Sept. 17-18 to decide whether to cut rates again or maintain the current rate environment.

Link copied

Published

Sep 04, 2019

Industry News

CHLA Advocates Attorney Opinion Letters As Alternatives To Title Insurance

CHLA asks FHFA to explore use of the letters.

The Community Home Lenders of America (CHLA) told Federal Housing Finance Director Sandra Thompson in a letter Wednesday that attorney opinion letters (AOLs) are viable alternatives to title insurance.  The organization cited the ongoing challenges related to rising mo...

People On The Move

Guild Mortgage Appoints Adam O'Daniel As Chief Marketing Officer

Industry veteran will lead marketing and branding initiatives.

Guild Mortgage announced the appointment of Adam O’Daniel as senior vice president and chief marketing officer Wednesday. In a press release, Guild said O'Daniel brings 15 years of experience in the mortgage and financial sectors previously having worked for Open Mortgage ...

Mar

Chicago, IL

More from

Regulation and Compliance

CFPB Slaps Bank Of America With $12 Million Penalty For False Mortgage Data Reporting

For at least four years, hundreds of Bank of America loan officers failed to ask mortgage applicants certain demographic questions.

Regulation and Compliance

Nov 28, 2023

Rising Home Values Propel Higher Loan Limits

FHFA Announces 5.6% Increase in Conforming Loan Limits for 2024

Regulation and Compliance

Nov 28, 2023

NMLS — Then, Now, And To Come

Leaders reminisce, plan, and dream about the regulatory group on its 15th birthday

Regulation and Compliance

Nov 02, 2023

Fannie Mae, Freddie Mac Shareholders Win Prejudgment Interest On $299M Verdict

Federal court upholds shareholders' right to interest after government's wrongful claim on profits; simple interest rate set, drawing from Delaware law precedent.

Regulation and Compliance

Oct 26, 2023

ADUs Can Now Be Sold Separately In California

‘Backyard revolution’ opens up the affordable housing market.

Regulation and Compliance

Oct 20, 2023

Cracking The Crackdown

How to eliminate and prevent ‘junk’ fees to avoid penalties

Regulation and Compliance

Oct 03, 2023

Popular