US Government
FEDERAL RESERVE Powell warns of ‘some pain’ ahead as the Fed fights to bring down inflation
KEY POINTS Fed Chairman Jerome Powell on Friday pledged that the central bank will “use our tools forcefully” to attack inflation that is still running near its highest level in more than 40 years. In his annual Jackson Hole, Wyoming, policy speech, Powell added that higher interest rates likely will persist “for some time. The…
Read MoreFed Governor Touts FedNow as Alternative to CBDC
The Fed’s upcoming payment service fulfills many of the same purposes as a CDBC. Key Takeaways Governor Michelle Bowman said today that the Federal Reserve’s FedNow service could be ready by mid-2023. She suggested that the payments service addresses the need for a central bank digital currency (CDBC). She also said that the Federal Reserve…
Read MoreThe Federal Reserve Bank of Boston and Massachusetts Institute of Technology release technological research on a central bank digital currency
The Federal Reserve Bank of Boston and the Digital Currency Initiative at the Massachusetts Institute of Technology today released the findings of their initial technological research into a central bank digital currency, or CBDC. The published research describes a theoretical high-performance and resilient transaction processor for a CBDC that was developed using open-source research software, OpenCBDC. This collaborative effort, known…
Read MoreBoston Fed, MIT unveil model for electronic cash as policymakers mull whether to launch it
Researchers say the prototype can handle 1.7 million transactions per second Some members of the Federal Reserve are continuing to explore the launch of its own digital dollar, as the Federal Reserve Bank of Boston on Thursday unveiled its first attempt at designing an electronic form of cash. The Boston bank’s research, conducted in a collaboration…
Read MoreHere are 5 things to know about the recent repo market operations
Chaos in short-term funding markets this week led the Federal Reserve to step in with a series of overnight rescue operations to help keep credit flowing through the financial system. Here are five things to know about gyrations in overnight lending rates, which several times in the past week spiked to almost 10%. The strain…
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