“The model suggests that governments must carefully weigh the longer-term consequences of intervening in the banking sector during crises.” “Bailouts may provide immediate relief, but they come with a trade-off: Although they can boost bank liquidity and output during banking crises, paying for bailouts may also require additional borrowing, thus leading to heightened government default…

“April’s advance monthly retail sales report showed consumer demand expanding to kick off the second quarter of 2023. Total nominal retail sales including food services rose 0.4 percent monthly, following two months of 0.7 percent declines. Even more impressively, “core retail sales” — which exclude automobiles, gasoline, building materials and food services — rose 0.7…

“Evolution in the value of money – i.e., inflation, or the percentage change in the price level – is a central concern of monetary policy. Accordingly, policymakers at most central banks monitor a range of inflation measures to come to an informed assessment about the underlying inflationary pressures. Over the past decade, increased attention has…

“Did uninsured depositors in the failed Silicon Valley Bank (SVB) need to be saved? The argument is that even though everyone knew that deposits over $250,000 were uninsured, if uninsured depositors had not been made whole, panic would have coursed through the banking system. Large depositors’ withdrawals from other banks would have compromised financial stability.…

“Adverse selection consequently offers an important missing piece to the puzzle of remote work’s rarity prior to Covid-19. Our estimates suggest that adverse selection distorts the decisions of 22 percent of call-center workers who do not choose to be remote because they do not want to pool with less productive types. There is promise that…

“Analysis in this Letter shows that labor-cost growth has a small effect on non-housing services (NHS) inflation, as well as inflation overall. The estimates imply that the recent surge in the employment cost index explains only about 0.1 percentage point (pp) of current elevated inflation readings, a negligible portion of the 3pp increase in the…

“This brief has highlighted the rapidly growing and complex landscape of digital-asset platforms and other intermediaries. These entities play an important role in providing investors access to virtual currencies, show a strong tendency toward market concentration, and share common features with traditional financial intermediation. Because regulations applicable to the money service business portions of digital-asset…

“Policymakers have examined recent bank failures closely and are taking seriously the question of why deposit runs were so fast and large by historical standards. They have pointed to technology, social media, and the nature of the depositor base at each bank as factors that increased the speed of runs. From an historical perspective, the…

“Given the important uncertainties facing the U.S. Economy, it will be essential for the Federal Reserve to communicate carefully how it assesses the incoming data and to provide clear guidance on what this means for its expected path of the policy rate. In this regard, greater emphasis should be placed on the need for interest…

“From the same month one year ago, the PCE price index for April increased 4.4 percent. Prices for goods increased 2.1 percent and prices for services increased 5.5 percent. Food prices increased 6.9 percent and energy prices decreased 6.3 percent. Excluding food and energy, the PCE price index increased 4.7 percent from one year ago.”…

“The Board’s H.4.1 statistical release, “Factors Affecting Reserve Balances of Depository Institutions and Condition Statement of Federal Reserve Banks,” has been modified to reflect the Federal Reserve’s return of a portion of Treasury’s equity investment in the MS Facilities LLC (Main Street Lending Program), Municipal Liquidity Facility LLC, and TALF II LLC, which occurred on…