The Federal Reserve, the central bank of the United States, released the minutes of the Federal Open Market Committee (FOMC) meeting held on April 30–May 1, 2024. The minutes were made public on May 22, 2024, at 2:00 p.m. EDT.
The Federal Reserve Bank of New York has released a new episode of its "Bank Notes" podcast, titled "Veterans in the Labor Force." This episode features experts discussing the labor force participation gap between veterans and nonveterans. A previous Liberty Street Economics blog post from May 2023 indicated that veterans are 22% more likely to be out of the labor force than their nonveteran counterparts. The podcast also addresses common misperceptions about military career paths and outcomes, while highlighting educational and vocational opportunities available to veterans...
The Hong Kong Monetary Authority (HKMA) has published the Hong Kong Taxonomy for Sustainable Finance, a framework aimed at raising awareness about green finance and promoting a common understanding of green activities. The taxonomy is designed to facilitate green finance flows, align investment decisions with climate goals, and reduce risks associated with non-aligned low-carbon assets. It also aims to unlock new investment opportunities in green technologies and sustainable projects while increasing transparency and accountability in the financial sector.
The report builds on the 2018 BCBS paper titled, “Sound practices: implications of fintech developments for banks and bank supervisors” and takes stock of recent developments in the digitalization of finance. The report reviews key technologies across various aspects of the banking value chain, including banks' use of application programming interfaces (APIs), artificial intelligence (AI) and machine learning (ML), distributed ledger technology (DLT), and cloud computing.
The International Sustainability Standards Board (ISSB) has released the IFRS Sustainability Disclosure Taxonomy, designed to reflect the IFRSS1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRSS2 Climate-related Disclosures, along with their accompanying guidance. This taxonomy provides elements for tagging sustainability-related financial information prepared in accordance with IFRS Sustainability Disclosure Standards. These elements enable companies to tag information about their sustainability-related risks and opportunities in...
The European Union is advancing its regulatory framework for artificial intelligence (AI) with the approval of the EU AI Act by the European Council on May 21, 2024. This comprehensive legislation sets prescriptive, risk-based rules through a common framework for the use and supply of AI systems within the EU. The Act will be published in the Official EU Journal shortly and will come into force 20 days after publication. High-risk systems will have 36 months to comply.
Sydney, Australia, May 22, 2024 – Global investment firm Carlyle (NASDAQ: CG) and Australian private credit manager amicaa have announced a NZ$140 million debt financing package for New Zealand fuel retailer NPD. The funding will support a management buyout of the family-owned business.
Tokyo, Japan – May 21, 2024 – Global investment firm Carlyle (NASDAQ: CG) announced the final close of its fifth Japanese buyout fund, Carlyle Japan Partners V (“CJP V”). The fund raised JPY 430 billion (approximately USD 2.8 billion), inclusive of commitments from the General Partner and its affiliates, hitting the hard cap on Limited Partner commitments. According to data from Preqin, this marks the largest fundraise for a buyout strategy focused on the Japanese market.
The Basel Committee on Banking Supervision (BCBS) has released guidelines aimed at addressing longstanding weaknesses in counterparty credit risk management within the banking industry. These guidelines emphasize several key practices essential for effective risk mitigation.
Federal Reserve Bank of Cleveland President Loretta Mester discussed current economic conditions and monetary policy during an interview with Bloomberg Television on May 20, 2024. Mester emphasized the role of the Federal Reserve in producing indicators and datasets to inform the public, policymakers, and researchers about various economic factors such as inflation, employment, and financial system risks.
A recent working paper from the Federal Reserve has examined how financial institutions manage potential risks in their credit card portfolios. The study, titled “Managing Risk in Cards Portfolios: Risk Appetite and Limits,” finds that firms typically employ a consistent approach to risk assessment, constantly monitoring potential risks against predetermined limits or thresholds.
STRESA – Secretary of the Treasury Janet L. Yellen met with France’s Minister of Economy and Finance Bruno Le Maire today on the sidelines of the G7 Finance Minister and Central Bank Governor Meetings in Stresa, Italy.
FRANKFURT – Secretary of the Treasury Janet L. Yellen today convened a roundtable with German financial executives to discuss global macroeconomic trends and financial sector risks, including illicit finance and Russian sanctions evasion.
The U.S. Department of the Treasury and Internal Revenue Service (IRS) have released additional guidance on the Inflation Reduction Act’s (IRA) domestic content bonus, a key component of President Biden’s economic strategy to stimulate American manufacturing and iron and steel production, thereby fortifying the clean energy economy.
Global investment firm Carlyle (NASDAQ: CG) has announced a $450 million forward flow agreement to purchase newly issued residential solar loans from Sungage Financial, a leading provider of solar financing. Alongside this, Carlyle has made a strategic investment into Sungage Financial. This partnership is expected to enhance Sungage Financial's origination capacity and drive future growth.
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on two Russian individuals and three Russia-based entities for facilitating weapons transfers between Russia and the Democratic People’s Republic of Korea (DPRK). This action aligns with U.S. government objectives to disrupt and expose arms transfers between the DPRK and Russia, building upon previous sanctions imposed by the Department of the Treasury and the Department of State related to DPRK-Russia arms transfers.
STRESA – Yesterday, Secretary of the Treasury Janet L. Yellen met with European Commissioner for the Economy Paolo Gentiloni on the sidelines of the G7 Finance Minister and Central Bank Governor Meetings in Stresa, Italy. During their meeting, Secretary Yellen commended the European Union’s economic growth in the first quarter, alongside falling inflation and continued strength in the labor market.
The U.S. Department of the Treasury and the Internal Revenue Service (IRS) have released proposed guidance on the Clean Electricity Production Credit and Clean Electricity Investment Credit, established under President Biden’s Inflation Reduction Act. This move aims to provide clarity to developers of clean electricity projects, furthering President Biden’s Investing in America Agenda, supporting American jobs, and enhancing energy production and security while reducing energy costs for consumers.
STRESA – Secretary of the Treasury Janet L. Yellen met with Italy’s Minister of Economy and Finance Giancarlo Giorgetti on May 15, 2024, during the G7 Finance Minister and Central Bank Governor Meetings in Stresa, Italy.
On May 16, 2024, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated three individuals and three entities associated with the malicious botnet tied to the residential proxy service known as 911 S5. The individuals sanctioned are Yunhe Wang, Jingping Liu, and Yanni Zheng. The entities include Spicy Code Company Limited, Tulip Biz Pattaya Group Company Limited, and Lily Suites Company Limited.
