A majority of economists say a significant increase in US core consumer prices last month is unlikely to keep the Federal Reserve from reducing interest rates next week, but it could make further cuts before year-end less likely, a Reuters survey finds. "The Fed will still cut rates next week to provide added insurance in the event that the trade war escalates, but it might think twice about moving again in October if core inflation shows any further spark," BMO Capital Markets economist Sal Guatieri says.
Chinese officials are considering measures to make the next round of trade negotiations with the US more focused and productive, sources say. China reportedly might seek to set national security issues aside for separate discussions, increase US agricultural imports and offer easier US access to Chinese markets. Meanwhile, President Donald Trump has indicated willingness to accept an interim agreement.
Goldman Sachs and other major banks are experimenting with alternative metrics to decide whether to loan to a customer. Instead of relying on financial history, lenders are using metrics such as shopping habits and whether phone bills are paid on time.
Michelle Bowman was confirmed by the US Senate for a 14-year term on the Federal Reserve Board of Governors. President Donald Trump appointed Bowman last year to fill Vice Chair Stanley Fischer's unexpired term and nominated her to a full-term in April.
Banks and credit card companies should not support sales of assault-style weapons and any firearm sold without and background checks, said former Congressman and current Democratic presidential candidate Beto O'Rourke. Most banks did not comment but Bank of America announced earlier this year they would stop making loans to companies that make military-style firearms for sale to civilians.
The US Treasury Department is considering issuing a 50-year bond in 2020 to capitalize on low interest rates and to offset fast-rising borrowing costs, Secretary Steven Mnuchin says. Bonds with maturity of more than 30 years were evaluated, then abandoned, by the Treasury in 2017, but Mnuchin says there is demand for them.
In his swan song as head of the European Central Bank, Mario Draghi has left successor Christine Lagarde in a position in which she likely will have to uphold relaxed monetary policy long term. The ECB's decision to cut interest rates and to resume bond purchases also raises pressure on central banks in the US and Japan to follow suit.
The future of the Consumer Financial Protection Bureau is in question if a court rules that the single-director structure is unconstitutional. The ruling could eliminate a clause that says the director can only be fired for cause, leaving CFPB Director Kathy Kraninger vulnerable if a Democrat becomes president.
Fewer than 25% of London's fintech firms could manage the fallout of the UK leaving the EU at the end of October without a deal in place, a survey by trade body Innovate Finance finds. About two-thirds of respondents feel Brexit offers no clear advantages for their business.