The matter of when it will be appropriate for the Federal Reserve to reduce the federal funds rate is nearly settled, as indicated by Fed Chair Jerome Powell, whose speech indicating that cuts are on the way came just days after another member of the Fed Board explained why they believe the time has come for rate reductions to begin.
Learn about this perspective and more in this regulatory roundup:
Bowman notes support for gradual interest rate reductions
In prepared remarks delivered before the Alaska Bankers Association, Federal Reserve Gov. Michelle Bowman expressed support for lowering the federal funds rate at a gradual pace, despite inflation sitting at higher-than-ideal levels.
“My baseline outlook is that inflation will decline further with the current stance of monetary policy,” Bowman said. “Should the incoming data continue to show that inflation is moving sustainably toward our 2 percent goal, it will become appropriate to gradually lower the federal funds rate to prevent monetary policy from becoming overly restrictive on economic activity and employment. But we need to be patient and avoid undermining continued progress on lowering inflation by overreacting to any single data point.”
Bowman stressed the importance of taking a wholistic approach to analyzing available economic data and touched on other matters impacting the health of the economy as well. Read her full remarks here.
FTC distributes refunds to consumers harmed by mortgage relief scheme
The Federal Trade Commission (FTC) announced it would be returning more than $222,000 in refunds to 322 consumers harmed by a deceptive mortgage relief operation known as Lanier Law. The perpetrators illegally collected thousands of dollars in upfront fees from homeowners, promising to lower their monthly payments then failing to deliver.
The FTC first took action against Lanier Law in 2014 as part of a joint law enforcement sweep by federal and state authorities, according to an agency press release. The lawsuit resulted in the defendants being banned from the debt relief business in 2016. One of the scheme’s owners, Michael Lanier, was disbarred.
Recipients are being advised to cash their checks within 90 days of receipt, as indicated on the check. More details are available here.
NCUA western regional director retires after 37 years
The National Credit Union Administration (NCUA) announced the retirement of Cherie Freed, regional director of the NCUA’s Western Region, effective Aug. 24. John Kutchey, regional director for the NCUA’s eastern region, will oversee the western region until a new regional director is selected. NCUA Associate Regional Director Mike Ryan will serve as the eastern region’s acting regional director during this transition.
“Cherie’s dedication to public service and the NCUA has been nothing short of exemplary,” NCUA Chair Todd Harper said in a press release. “She excelled at building internal and external coalitions, she was passionate about meeting organizational goals and customer expectations, and she produced results at the highest level. Cherie has exhibited sustained excellence throughout her career, inspired others, and made innumerable contributions to the NCUA. On behalf of the entire NCUA board, we wish to extend our sincere gratitude to Cherie and wish her well in future endeavors.”
Freed is retiring with over 37 years of service to the NCUA. Prior to being selected as regional director in 2016, she served as the associate regional director for the Western Region. She previously served as the director of supervision and as the loss-risk analysis officer in the NCUA’s Office of Examination and Insurance. Learn more about her career here.