Shock, Grief and Opportunity: The Emotional Roller Coaster of COVID-19 in the Small Business Community
Given that small businesses employ nearly half of all private sector workers, their struggles directly impact both the well-being of workers and the broader economy.
Communities, Service Providers in Region See Long Road to COVID-19 Recovery, Fed Survey Shows
Nearly all respondents reported "significant" disruption to economic conditions in their communities, and over two-thirds anticipate a "difficult" economic recovery.
Women-Veteran Entrepreneurs Face Hardships Made Worse by Pandemic
Businesses that were already vulnerable before the COVID-19 pandemic have become even more so during the ensuing recession the last few months. These businesses tend to be smaller and younger and are disproportionately owned by Hispanic and especially Black entrepreneurs.
Tax Reform's Impact on Bank and Corporate Cyclicality
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 cyclicality by making bank capital and default risk for highly levered corporations more sensitive to economic downturns.
Hard-Hit Child Care Industry May Need Multisector Response to Revive and Thrive
Millions of U.S. workers have lost their jobs during the pandemic. When they are ready to return to work, their child care options may be few.
COVID-19 and CRA: Fed Issues Guidance on Helping Communities Through the Crisis
To help support economic resiliency, we are providing Community Reinvestment Act (CRA) consideration for banking and lending activities in response to COVID-19.
Bank Capital and Risk: Cautionary or Precautionary?
Do riskier banks have more capital? Banking companies with more equity capital are better protected against failure, all else equal, because they can absorb more losses before becoming insolvent. As a result, banks with riskier income and assets would hopefully choose to fund themselves with relatively more equity and less debt, giving them a larger equity cushion against potential losses. In this post, we use a top-down stress test model of the U.S. banking system?the Capital and Loss Assessment under Stress Scenarios (CLASS) model?to assess whether banks that are forecast to lose capital in ...
Who Benefited from the Paycheck Protection Program? Our Texas Analysis Offers an Early Look
Though many hail the Paycheck Protection Program as a historic lifeline for the economy, others have raised concerns that the program reinforces inequities and has led to loan approvals not in alignment with its mission.
The Federal Reserve Is Updating the Community Reinvestment Act. Here’s How You Can Help.
Whether you are a community-service organization member, an economic development professional or simply interested in helping communities in our region thrive, your comments and ideas are a critical part of ensuring an inclusive financial services industry.
Financial Stability Framework; Panel Remarks for the International Banking, Economics, and Finance Association and American Economic Association Session, \\"Integrating Financial Stability with Monetary Policy\\", Allied Social Science Associations Annual Meeting, 01-06-2018; Philadelphia, PA
I will discuss four topics: the relationship between financial stability and monetary policy, the Federal Reserve?s current framework for assessing and monitoring financial stability risks, an exercise aimed to assess possible policy responses to such risk, and some of the governance issues we face in addressing these risks.