Money Talk: St. Louis Fed changes view on economy, Bullard says only one rate hike needed in near-term
by June 20, 2016 8:15 pm 111 views
Editor’s note: Each Monday, Talk Business & Politics provides “Money Talk,” a wrap-up of banking and financial news.
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ST. LOUIS FED CHANGES VIEW ON ECONOMY, BULLARD SAYS ONLY ONE RATE HIKE NEEDED OVER NEXT 2-1/2 YEARS
St. Louis Fed chief James Bullard on Friday said the Eighth District is changing its characterization of the U.S. macroeconomic and monetary policy outlook. An older narrative that the Eighth District has been using since the financial crisis ended has now likely outlived its usefulness, and so it is being replaced by a new narrative, Bullard said in a white paper released on Friday.
The upshot is that the new approach delivers a very simple forecast of U.S. macroeconomic outcomes over the next 2-1/2 years, meaning only one interest rate increase is necessary during that period. Over this horizon, the forecast is for real output growth of 2%, an unemployment rate of 4.7%, and trimmed-mean inflation of 2%.
“The hallmark of the new narrative is to think of medium- and longer-term macroeconomic outcomes in terms of regimes. The concept of a single, long-run steady state to which the economy is converging is abandoned, and is replaced by a set of possible regimes that the economy may visit,” Bullard said. Read more here.
FINRA TAPS NEW CEO
The board of governors for the Financial Industry Regulatory Authority (FINRA) has concluded its CEO search and appointed Robert Cook as President and Chief Executive Officer, effective the second half of 2016. Cook will succeed Richard G. Ketchum, who has served as Chairman and CEO since 2009. FINRA, the largest independent regulator for all securities firms doing business in the U.S., intends to name a new chairman in the coming months.
Cook will join FINRA from Cleary Gottlieb Steen & Hamilton LLP, where he has served as a partner in the firm’s Washington, D.C., office since June 2013. While at Cleary Gottlieb, he focused on the regulation of securities markets and market intermediaries, including broker-dealers, exchanges, alternative trading systems and clearing agencies. Prior to joining Cleary Gottlieb, Cook served as the director of the Division of Trading and Markets of the U.S. Securities and Exchange Commission (SEC) from 2010 to 2013.
PRESIDENT OBAMA TO KICK OFF SELECTUSA INVESTMENT SUMMIT
President Barack Obama, Secretary of State John Kerry, and other administration officials kicked off the 2016 SelectUSA Investment Summit Monday (June 20) at the Washington Hilton in Washington, D.C. The event will bring together international companies, domestic economic development organizations (EDOs), and a range of other stakeholders to explore job-creating investment opportunities throughout the United States.
Nearly 2,400 participants from 65 foreign markets and the United States will participate in the SelectUSA Summit. This year’s theme, “The Innovation Advantage,” will highlight the innovative climate and diversity of resources available across the country that can contribute to global competitiveness. High-profile business and government leaders will share their insights on the latest innovations and trends. To learn more about the summit, click here.