FEDERAL GOVERNMENT RELATIONS
Household Incomes Rise for First Time Since Pandemic
The U.S. Census Bureau reported a 4% rise in inflation-adjusted median household income to $80,610 in 2023, marking the first increase since the pandemic. This improvement is attributed to easing inflation and a robust job market, though the report also revealed that women saw smaller income gains than men, and poverty rates showed mixed trends.
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U.S. Core Inflation Rises in August
August saw an unexpected rise in U.S. core inflation, driven by increased housing and travel costs. According to the Bureau of Labor Statistics, the core consumer price index climbed 0.3% compared with July, the most in four months, and 3.2% compared with August 2023. The overall CPI increased 0.2% compared with July.
House Leadership Calls Off Planned Vote on Funding Bill
Leaders in the House called off a planned vote on a measure that seeks to combine government funding with a provision related to voter registration in federal elections. A government shutdown looms after Sept. 30 without congressional action.
Fraud-Related SARs Falling for First Time Since 2014
The pace of fraud-related suspicious activity reports, or SARs, filed by depository institutions and loan or finance companies has slowed this year. It is on pace to hold steady for the first time in 10 years, when the Financial Crimes Enforcement Network introduced its current method of disclosing SAR data. Such reports totaled 890,000 from January through July, compared with 940,000 in the same time frame last year and 810,000 for the same period in 2022, which brought a sharp increase from prior years.
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Senate Banking Committee Members Outline Different Approaches to Tackling Financial Scams
During a hearing Thursday on financial scams targeting consumers, Senate Banking Committee members offered different approaches for addressing the problem. Democrats argued that banks and other financial institutions should take responsibility for scams targeting their customers, while Republicans pushed for consumer education.
Committee Chairman Sherrod Brown, D-Ohio, said technology companies need to do more to prevent fraud through their social media platforms, and that payment platforms should reimburse customers who have been scammed.
Rep. Barr: Reg II Debit Card Proposal Would Hurt Community Banks, Customers
The Federal Reserve’s proposal to revise Regulation II to lower debit card interchange fees is a “huge concern” for community banks and could push many Americans into being unbanked, Rep. Andy Barr, R-Ky., said during an interview on IntraFi’s Banking with Interest podcast.
Fed Vice Chair to Recommend Substantial Changes to Basel III Capital Requirements, Repropose the Rules
Federal Reserve Vice Chairman for Supervision Michael Barr outlined a series of sweeping changes he will recommend to the proposed Basel III endgame capital requirements, including reproposing the rule to kick off a new round of public review and comment. Among other provisions, banks with assets between $100 billion and $250 billion would no longer be subject to the proposed changes, other than the requirement to recognize unrealized gains and losses of their securities in regulatory capital, according to Barr.