Politics

The Federal Housing Administration reported a 96 basis point increase in its capital ratio for fiscal year 2023, and lenders want more changes to the program.

In its semiannual supervision and regulation report, the Federal Reserve flagged climbing loan delinquencies and a rising number of large bank citations for governance and controls.

The Federal Reserve chair said there are no economic indicators calling for rapid rate cuts. He also addressed Fed independence, the impact of Trump's economic agenda and more.

Rep. Matt Gaetz, R-Fla., whose chances of getting confirmed as attorney general are unclear in the wake of allegations of sex trafficking and a House ethics probe against him, cuts a more populist profile than many expected from a Republican president.

In a speech, Federal Reserve Gov. Adriana Kugler said sound monetary policy comes when electoral politics are kept out of central banking.

The incoming Trump administration is expected to prioritize an activities-based oversight approach to nonbank entities, just as the Biden administration has. It may also leave its designation power intact, but unused.

The Federal Open Market Committee is expected to lower short-term financing costs in the wake of volatility that has put upward pressure on mortgage rates.

Experts anticipate a pullback in regulatory action and some potential pain for home builders but long-term interest rate impacts are a major question mark.

President Trump initiated changes at the Consumer Financial Protection Bureau in his first term, and the industry's frustration with the bureau has grown since he left office. But how far a second Trump administration can or will go depends on factors outside the president's control.

Experts anticipate that Trump's victory and expected shifts in regulatory leadership will delay finalizing Biden-era capital rules for large banks, with new officials likely favoring a less stringent Basel III framework and softer capital requirements.