Federal Reserve Chair Janet Yellen signaled growing support for an interest-rate increase during the central bank's annual gathering in Jackson Hole, Wyo. "In light of the continued solid performance of the labor market and our outlook for economic activity and inflation, I believe the case for an increase in the federal funds rate has strengthened in recent months," she said.
European Central Bank President Mario Draghi is allowing expectations about the central bank's 8 September meeting to be shaped by economic data. Upcoming inflation, business confidence and unemployment figures could signal whether the ECB needs to provide more stimulus amid Brexit.
If confronted by a prolonged recession, the Federal Reserve may increase its inflation target and buy a broader range of assets than it has targeted in the past, Chair Janet Yellen said. "Future policymakers might choose to consider some ... tools that have been employed by other central banks, though adding them to our tool kit would require a very careful weighing of costs and benefits and, in some cases, could require legislation," she said.
Widespread uncertainty about how blockchain fits into existing financial regulations is the biggest concern delaying the technology's adoption, according to a World Federation of Exchanges survey. Some exchanges want the International Organization of Securities Commissions to establish blockchain data-protection standards, the federation said in a report.
Charles Schwab's new target-date funds with a 0.08% annual cost set the latest battleground for the asset management industry's price wars. Target-date funds have become increasingly popular retirement savings options in workplace plans, with assets in the funds reaching $790 billion in March, according to Investment Company Institute data.
The Financial Stability Board is concerned the global derivatives market will fracture because only Japan, Canada and the US will meet Thursday's deadline to phase in collateral rules. "Differences in the coverage of regulatory requirements could prove challenging for market participants, particularly where firms or transactions are subject to multiple jurisdictions' regulatory requirements," according to the FSB.
Federal Deposit Insurance Corp. examiners are encountering more problems with bank governance than any other type of deficiency, and the problem has been growing for several years. Incomplete or inconsistent policies and audit concerns are among the most common shortcoming discovered during bank examinations, the FDIC said.
Chinese officials are trying to prevent discussion of excess capacity for steel production during the upcoming Group of 20 summit in Hangzhou. China's exports are declining overall, but steel exports increased 8.5% in the first seven months of 2016 compared with the same period of 2015.
Rules on direct electronic access under Europe's revised Markets in Financial Instruments Directive will have no effect on clients because of German regulation, according to Eurex. "The German Exchange Act has tough requirements for order routing, where the order-router provider, the broker, is responsible for the order, and the provider is required to filter the order and provide checks," Eurex's Randolf Roth said.
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