Statements from Federal Reserve Chairman Jerome Powell and Federal Reserve Bank of St. Louis President James Bullard suggest a quarter-point interest-rate decrease will occur this month. Bullard has emphasized the move should be seen as recalibration, rather than the first in a series of cuts.
President Donald Trump said comments by New York Federal Reserve President John Williams about the Fed having raised rates too quickly were accurate, and he criticized the central bank, saying US rates were higher than those in other countries. The president has been critical of Federal Reserve Chairman Jerome Powell for raising rates, saying his presidential administration has been successful despite the Fed.
The Federal Reserve is expected to announce plans for a new instant payment system, but some banks say it is not needed. More than $1 billion dollars has been invested by large banks in the Clearing House Payments Co., but some say the payment system should not be managed by private companies.
Fifth Third Bank will introduce its mobile kiosk "Banking to Go" at the 110th NAACP National Convention in Detroit this week. The kiosk is designed to help low-to-moderate income consumers access banking products and services, and it is part of Fifth Third's $32 billion community commitment.
Federal Deposit Insurance Corp. Chairman Jelena McWilliams has expressed an interest in granting new bank charters, and more new banks are sprouting up across the country. The number of community banks declined after the recession, but a strong economy has led to more de novo activity.
Seven states have approved legislation to give greater oversight to student loan servicers as the Department of Education and the Consumer Financial Protection Bureau loosen their oversight. Education Secretary Betsy DeVos and President Donald Trump say states have no authority over federal student loans, but recent court rulings have strengthened the states' claims to oversee student loan servicers.
The Federal Deposit Insurance Corporation board approved a rule that would give depositors at the 32 largest banks faster access to a failed bank's insured funds. The board also approved a rule that considers evidence other than signatures to prove a bank account was jointly-owned.
Twenty-eight percent of consumers had one or more debts in collections from 2004 to 2018, and 58% of third party collections was medical debt, according to a report from the Consumer Financial Protection Bureau. About 20% of the debt was for utilities or telecommunications, according to the report.
Bank of America has about 16 million millennial customers representing $200 billion in deposits, loans and investments, according to Bank of America CEO Brian Moynihan. Having a digital strategy is important in attracting millennials, and 25% of all of Bank of America's consumer banking sales are digital.
The Federal Reserve found most people would rather pay their important bills through checks, and changing overdraft protection could harm consumers, writes David Pommerehn, senior vice president and associate general counsel at the Consumer Bankers Association.
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