PH FedACTion: Financial Regulatory Updates
Daily Financial Regulation Update -- Thursday, September 17, 2020
September 17, 2020
FedACTion Task Force
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Congress
Click here to view the full text of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), Enacted March 27, 2020.
Click here to view the full text of the Paycheck Protection Program Increase Act of 2020, Enacted April 24, 2020.
Click here to view the full text of the Paycheck Protection Program Flexibility Act of 2020, Enacted June 5, 2020.
Click here to view a running list of proposed legislation from the Senate Committee on Banking, Housing, and Urban Affairs, Senate Committee on Small Business and Entrepreneurship, House Committee on Financial Services, and House Committee on Small Business.
U.S. House of Representatives
Committee on Financial Services
Waters Delivers Statement on the Federal Housing Finance Agency’s Response to the COVID-19 Pandemic
September 16, 2020
At a full committee hearing on oversight of the Federal Housing Finance Agency (FHFA), Congresswoman Maxine Waters (D-CA), Chairwoman of the House Committee on Financial Services, criticized FHFA Director Dr. Mark Calabria for pushing forward a new regulatory capital framework for Fannie Mae and Freddie Mac in the midst of the COVID-19 pandemic. Waters questioned the timing of the changes and suggested they would actually make the housing market less prepared for the next economic crisis.
Federal Agencies
Federal Reserve Board
Deputy Associate Director Kent Hiteshew Delivers Testimony to Congressional Oversight Commision on the Federal Reserve’s Municipal Liquidity Facility
September 17, 2020
At a meeting of the Congressional Oversight Commission, Kent Hiteshew, Deputy Associate Director for the Division of Financial Stability of the Federal Reserve, delivered testimony regarding the Municipal Liquidity Facility and its contributions to a recovery of the municipal securities market. Hiteshew noted that mutual funds have experienced 18 consecutive weeks of positive inflows, boosting demand for municipal securities and contributing to lower rates, and that many state and local governments have taken advantage of these low rates to refinance their outstanding debt, with a resulting record issuance of $225 billion of bonds since April 1, 2020.
FOMC Statement on the U.S. Economy
September 16, 2020
The Federal Open Market Committee (Committee) issued a statement regarding the Federal Reserve’s commitment to using its full range of tools to support the U.S. economy during the COVID-19 pandemic. The Committee keeptthe target range for the federal funds rate at 0 to 1/4 percent and expects it will be appropriate to maintain this target range until labor market conditions have reached levels consistent with the Committee's assessments of maximum employment and inflation has risen to 2 percent and is on track to moderately exceed 2 percent for some time. In addition, over coming months the Federal Reserve will increase its holdings of Treasury securities and agency mortgage-backed securities at least at the current pace to sustain smooth market functioning and help foster accommodative financial conditions, thereby supporting the flow of credit to households and businesses.
FOMC Releases Economic Projections from September 15-16 Meeting
September 16, 2020
The Federal Reserve Board and the Federal Open Market Committee (FOMC) released economic projects from the September 15-16 FOMC Meeting. The linked table and charts summarize the economic projections and the target federal funds rate projections made by FOMC participants at the meeting.
Federal Reserve Bank of New York
New York Fed President John Williams to Meet with Government, Business, and Nonprofit Leaders from the Greater Rochester Area on September 23-25
September 16, 2020
On September 23-25, Federal Reserve Bank of New York President John C. Williams will hold a series of engagements with leaders in business, government, health care, community development, and education from New York's Greater Rochester region. On Wednesday, September 23, President Williams will join a roundtable discussion via phone with members of Rochester's business community to hear about current economic conditions and the challenges they face amid the COVID-19 pandemic.
New York Fed Releases Business Leaders Survey
September 16, 2020
The Federal Reserve Bank of New York released its September 2020 Business Leaders Survey. According to respondents, activity in the region’s service sector declined modestly, while the survey’s headline business activity index rose twelve points to -5.4, pointing to a slower pace of decline than in August. The business climate index rose eight points to -66.5, indicating that firms viewed the business climate as worse than normal, though to a somewhat lesser extent than last month. Looking ahead, firms were slightly optimistic about the six-month outlook, on net, and expected the business climate to remain worse than normal in the months ahead.
New York Fed Releases Updated Form Documents and Certifications for the Municipal Liquidity Facility
September 16, 2020
The Federal Reserve Bank of New York has updated the Form Documents and Certifications for the Municipal Liquidity Facility.
New York Fed Releases Statement Regarding Treasury Securities, Agency Mortgage-Backed Securities, and Agency Commercial Mortgage-Backed Securities Operations
September 16, 2020
Effective September 16, 2020, the Federal Open Market Committee (FOMC) directed the Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York to continue to increase the System Open Market Account (SOMA) holdings of Treasury securities and agency mortgage-backed securities (MBS) at the current pace. The FOMC also directed the Desk to increase holdings of Treasury securities and agency MBS by additional amounts, and purchase agency commercial mortgage-backed securities (CMBS), as needed to sustain smooth functioning of markets for these securities.
National Credit Union Association
NCUA Provides $3.7 Million in Grants and Loans to Help Credit Unions Meet COVID-19 Needs
September 15, 2020
The National Credit Union Administration awarded $3.7 million in grants and no-interest loans to 162 low-income credit unions. In April, the agency committed the majority of its 2020 Community Development Revolving Loan Fund allocation to COVID-19 assistance. The grants and loans went to low-income credit unions in 40 states and the District of Columbia.