Reference rates per Board of Governors-Federal Reserve System
Interest on Reserve Balances: 5.40%
Discount Window Rate: 5.50%
Effective Federal Funds Rate: 5.33%
Foreign Exchange Rates reported by Board of Governors-Federal Reserve System
AUD/USD=0.6607
NZD/USD=0.6020
USD/JPY=155.8500
GBP/USD=1.2528
EUR/USD=1.0773
USD/CAD=1.3663
USD/MXN=16.7650
Barr’s testimony before House financial services committee nothing to write home about …
In his testimony today before the U.S. House Committee on Financial Services, Michael S. Barr, Board of Governors vice-chairman for bank supervision and regulation, reported that, “Overall, the banking system remains sound and resilient. Banks continue to report capital and liquidity rates above minimum regulatory levels. Overall asset quality remains generally sound. Lending continues to grow but has slowed from the rapid pace of 2022, reflecting decreased demand and tighter lending standards.”
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According to Vice-chairman Barr’s testimony, consumers may be gaining a little more confidence in the banking system given the increase in bank deposits during the first three months of 2024.
Vice-chairman Barr advised the committee to pay attention to a number of risks including increasing delinquency rates on commercial real estate loans, which are at a five-year high and an increase in credit card and auto loan delinquencies. Vice-chairman Barr reiterated the banking system’s ability to absorb losses due to its buildup of liquid assets.
Vice-chairman Barr also discussed the use of the Federal Reserve’s discount window and the need to improve this lending facility to banks that has existed since the Federal Reserve’s inception in 1913. The Federal Reserve is reaching out to banks of all sizes to obtain input on how best the facility can better meet the banking system’s needs.
Alton Drew
15 May 2024
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