The Fed is having a busy year, battling inflation, closing regional banks, updating the national payment system, and now preparing the US for the Basel III Endgame. The Fed’s proposal to roll out adjustments to capital and liquidity requirements is out now and up for discussion until the end of this November.
As the Federal Reserve grapples with the persistent battle against inflation, another set of critical concerns is emerging on the horizon that could potentially disrupt the much sought-after soft-landing for the US economy. The spotlight is now on three pivotal factors: Oil, Food, and Labor.
The US savings rate fell close to 15 year lows in October 2022 at 2.3% and is now around 4% in mid 2023 but still currently below the long term average US savings rate of approximately 8.8%. With Apple’s new high yield savings account gaining traction and interest rates on the rise, the nation’s financial landscape is looking to move on from the shock of the pandemic.
Fed Chair Jerome Powell’s recent announcement brings a glimmer of relief as his staff stops forecasting a recession for the US. The good news is that a “soft landing” for US inflation issues appears more likely, meaning inflation might decrease without significant job losses. However, there’s “a lot left to go” before Wall Street revs up its engines!
Executive compensation has always been a hot topic, with its complexity tied to company performance and stock prices. Know your worth and how you want to be paid as executive pay is still on the rise and will most likely remain sticky.
Although the US may be a bit late to the Real Time Payment (RTP) transaction party, it’s set to make a resounding impact as RTP adoption ramps up. With FedNow joining the fray, the US payment landscape is undergoing a revolution, enabling faster and more efficient transactions. FedNow is here, and it’s poised to transform the way we exchange money, right here, right now.