The U.S. Department of the Treasury and the Internal Revenue Service (IRS) announced today that Direct File will become a permanent, free tax filing option. All 50 states and the District of Columbia have been invited to join this initiative for the 2025 filing season. This decision follows a successful pilot program where 140,000 taxpayers claimed over $90 million in refunds and saved an estimated $5.6 million in filing costs.
Thank you, Julia, for the kind introduction and thank you to Atlantik Brücke and TBI for hosting me here today. I have visited Germany more often than any other country during the Biden Administration. This speaks not only to the depth but also the breadth of the U.S.-German partnership on economic, climate, and national security issues. But as you all know, the foundation of our partnership is deeper than our shared interests. Our people share the same values, including a deep and abiding commitment to promoting democratic values at home and abroad.
The Federal Reserve Bank of Cleveland has announced the appointment of Beth M. Hammack as its next president and chief executive officer, effective August 21, 2024. Hammack will succeed Loretta J. Mester, whose tenure concludes on June 30, 2024, in accordance with Federal Reserve policies.
The national unemployment rate stood at 3.9% in April, aligning with pre-pandemic levels. New England's unemployment rate was even lower at 3.3%. According to MIT economist David Autor, the tight labor markets during the pandemic resulted in rising wages for low-paid workers, reversing a four-decade trend of increasing inequality between low- and high-wage workers. The Biden administration has emphasized that the recovery from the pandemic-induced downturn is one of the most equitable in recent history.
The Federal Reserve has reported that the regional economy experienced modest growth in recent weeks. Consumer spending on retail, restaurants, and leisure travel increased, although new vehicle sales saw a slight decline. Import activity surged due to natural growth and cargo diverted from Baltimore. The Port of Baltimore recently opened a limited access channel allowing most container ships to enter the harbor.
President Mester delivered remarks for a panel discussion at the Bank of Japan in Tokyo on May 28, 2024. The speech, titled “Forward Guidance and Monetary Policy Communications: Use Your Words and Connect the Dots,” focused on the importance of clear communication in monetary policy.
On May 28, 2024, a comprehensive discussion on forward guidance and monetary policy communications was presented, emphasizing the importance of clear communication from the Federal Open Market Committee (FOMC). The effectiveness of forward guidance as a policy tool in extraordinary times can be significantly enhanced by improving monetary policy communications during normal times.
The National Credit Union Administration (NCUA) has granted a federal charter and Share Insurance Fund coverage to Tribe Federal Credit Union in Minneapolis. This marks the first federal credit union to receive a charter under the NCUA’s provisional charter pilot initiative.
The Federal Reserve Bank of Richmond announced today that Anna Kovner has been appointed as the new Director of Research. She will join the Richmond Fed's Management Committee in mid-June.
Reuters recently conducted an interview with President Loretta J. Mester of the Cleveland Federal Reserve. In her nearly 40 years with the Federal Reserve, Mester has witnessed significant changes in how the U.S. central bank communicates about economic conditions and monetary policy.
The Federal Reserve Bank of New York released a report titled “Flood Risk and Basement Housing in New York City: The Impact of Extreme Weather on Vulnerable Housing Stock” on May 22, 2024. The report indicates that approximately 10% of low-income and immigrant New Yorkers reside in census tracts with basement apartments at high risk of flooding.
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.
