ECONOMY

Designing Bank Regulation with Accounting Discretion

Kinda Hachem Why does the banking industry remain prone to large and costly disruptions despite being so heavily regulated? Is…

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U.S. Banks Have Developed a Significant Nonbank Footprint

Nicola Cetorelli and Saketh Prazad  In light of the rapid growth of nonbank financial institutions (NBFIs), many have argued that…

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The Future of Payment Infrastructure Could Be Permissionless

Rod Garratt and Michael Junho Lee Following the recent passage of legislation in the U.S., payment stablecoins seem to be…

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How Businesses Set Prices—In Their Own Words

Wändi Bruine de Bruin, Keshav Dogra, Sebastian Heise, Edward S. Knotek II, Brent H. Meyer, Robert W. Rich, Raphael S.…

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Is Monetary Policy Still Seasonal? 

Richard Crump, Keshav Dogra, and Dennis Kongoli A 2012 Liberty Street Economics post noted that U.S. monetary policy exhibits a…

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Banks Develop a Nonbank Footprint to Better Manage Liquidity Needs

Nicola Cetorelli and Saketh Prazad In a previous post, we documented how, over the past five decades, the typical U.S.…

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How Has Treasury Market Liquidity Fared in 2025?

Michael J. Fleming In 2025, the Federal Reserve has cut interest rates, trade policy has shifted abruptly, and economic policy…

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Banking System Vulnerability: 2025 Update

Matteo Crosignani, Thomas Eisenbach, and Fulvia Fringuellotti As in previous years, we provide in this post an update on the…

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Economic Capital: A Better Measure of Bank Failure?

Beverly Hirtle and Matthew C. Plosser Bank failures and distress can be costly to the economy, causing losses to creditors…

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The New York Fed DSGE Model Forecast—September 2025

Donggyu Lee, Elena Elbarmi, Ibrahima Diagne, Keshav Dogra, Marco Del Negro, and Michael Pham This post presents an update of…

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