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The Federal Reserve Bank of New York was incorporated in May 1914 and opened for business in November later that year. To commemorate the New York Fed’s centennial, take a look at the people and events that helped shape our history.

New York Fed

The Transatlantic Economy Ten Years after the Crisis: Macro-Financial Scenarios and Policy Responses

Moreno Bertoldi, Paolo Pesenti, Hélène Rey, and Petr Wagner “The Transatlantic Economy Ten Years after the Crisis: Macro-Financial Scenarios and Policy Response,” was the focus of a conference, jointly organized by the New York Fed, the European Commission, and the Centre for Economic Policy Research in April 2018. These three institutions had previously collaborated on a series of events related to transatlantic economic relations, including a workshop in April 2014 and a conference...

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Just Released: Beige Book Points to Moderate Growth and Tight Labor Markets

Jaison R. Abel and Jason Bram The New York Fed’s latest Beige Book report—based on information collected through July 9—points to sustained moderate growth and tight labor markets in the region. Manufacturers and wholesalers noted a persistent rise in economic activity over the first half of this year. However, a number of contacts in these sectors remarked that tariffs have raised their costs, and uncertainty about future trade policy was cited as a concern by...

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The Premium for Money-Like Assets

Marco Cipriani and Gabriele La Spada Several academic papers have documented investors’ willingness to pay a premium to hold money-like assets and focused on its implications for financial stability. In a New York Fed staff report, we estimate such premium using a quasi-natural experiment, the recent reform of the money market fund (MMF) industry by the Securities and Exchange Commission (SEC). Money-Likeness and the SEC Reform As discussed in a previous Liberty...

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Tax Reform’s Impact on Bank and Corporate Cyclicality

Diego Aragon, Anna Kovner, Vanesa Sanchez, and Peter Van Tassel The Tax Cuts and Jobs Act (TCJA) is expected to increase after-tax profits for most companies, primarily by lowering the top corporate statutory tax rate from 35 percent to 21 percent. At the same time, the TCJA provides less favorable treatment of net operating losses and limits the deductibility of net interest expense. We explain how the latter set of changes may heighten bank and corporate borrower...

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The New York Fed DSGE Model Forecast–July 2018

Sushant Acharya, Michael Cai, Marco Del Negro, Abhi Gupta, and Pearl Li This post presents an update of the economic forecasts generated by the Federal Reserve Bank of New York’s dynamic stochastic general equilibrium (DSGE) model. We describe very briefly our forecast and its change since March 2018. As usual, we wish to remind our readers that the DSGE model forecast is not an official New York Fed forecast, but only an input to the Research staff’s overall forecasting process. For...

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Size Is Not All: Distribution of Bank Reserves and Fed Funds Dynamics

Gara Afonso, Roc Armenter, and Benjamin Lester As a consequence of the Federal Reserve’s large-scale asset purchases from 2008-14, banks’ reserve balances at the Fed have increased dramatically, rising from $10 billion in March 2008 to more than $2 trillion currently. In that new environment of abundant reserves, the FOMC put in place a framework for controlling the fed funds rate, using the interest rate that it offered to banks and a different, lower interest rate that it offered...

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U.S. Virgin Islands’ Economy Hit Hard by Irma and Maria

Jason Bram and Lauren Thomas In the ten months that have passed since Hurricanes Irma and Maria ravaged the Caribbean, much interest has been focused on Puerto Rico and its roughly 3.3 million American citizens, who weathered the largest blackout in U.S. history. However, far less attention has been paid to the U.S. Virgin Islands, even though St. Thomas, St. Croix, St. John, and a number of smaller islands suffered comparable devastation. This is partly attributable to their much...

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Why New York City Subway Delays Don’t Affect All Riders Equally

Nicole Gorton and Maxim Pinkovskiy The state of the New York City subway system has worsened considerably over the past few years. As a consequence of rising ridership and decaying infrastructure, the network is plagued by delays and frequently fails to deliver New Yorkers to their destinations on time. While these delays are a headache for anyone who depends on the subway to get around, they do not affect all riders in the same way. In this post, we explain why subway delays...

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How Is Technology Changing the Mortgage Market?

Andreas Fuster, Matthew Plosser, and James Vickery The adoption of new technologies is transforming the mortgage industry. For instance, borrowers can now obtain a mortgage entirely online, and lenders use increasingly sophisticated methods to verify borrower income and assets. In a recent staff report, we present evidence suggesting that technology is reducing frictions in mortgage lending, such as reducing the time it takes to originate a mortgage, and increasing the elasticity...

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At the New York Fed: Conference on the Effects of Post-Crisis Banking Reforms

Richard Crump and João Santos The financial crisis of 2007-08 and the ensuing recession, the most severe since the 1930s, prompted a wave of regulatory reforms: tighter bank capital and liquidity rules, new failed bank resolution procedures, a stand-alone consumer protection agency, greater transparency in money market funds, central clearing of derivatives, and others as well. As these reforms have gradually taken effect, a healthy debate has emerged in the policy and academic...

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