Finance Items from American Banker
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Federal Reserve Gov. Michael Barr Thursday outlined his concerns that the delayed impact of consumer price increases due to tariffs could lead to stronger consumer expectations for future inflation; Treasury Secretary Scott Bessent said that asset thresholds used to compel enhanced prudential standards should be revised upwards to account for inflation and economic growth; The Treasury Department and bank regulators issued a frequently asked questions guidance Thursday meant to reduce banks' burdens in filing suspicious activity reports, a key deregulatory priority for banks; and more in today's newsletter
Federal Reserve Gov. Michael Barr said in a speech Thursday that he fears the gradual pace of price increases from tariffs being passed on to consumers may prolong the one-time inflationary effect of the tariffs to the point where it affects consumers' inflation expectations.
Treasury Secretary Scott Bessent Thursday said the bank asset thresholds that trigger enhanced prudential standards like stress testing and additional capital requirements require a recalibration to account for inflation.
A new interagency guidance clarifies when banks must report suspicious activity, easing compliance workloads and narrowing the reporting requirements to focus on higher-value cases.
Federal Reserve Gov. Michael Barr is warning small banks about the growing threat from fraudsters' use of AI-generated deepfakes. But he also says AI may be able to help community banks fight fraud more effectively.
The Senate confirmed former Federal Deposit Insurance Corp. board member Jonathan McKernan to serve as Treasury's under secretary for domestic finance on a party-line vote, installing a key industry ally in the Treasury Department.