Home sellers are moving forward with their plans without the Fed

Home sellers are moving forward with their plans without the Fed By Hardika Singh

That spring thaw in the home market buyers and sellers were hoping for never showed up, but homeowners aren't waiting around. Meanwhile, borrowing from the discount window by banks carries a stigma officials hope to reduce. And regulators want to curb bonus pay on Wall Street. Read on for this news and more.

Top News These Home Sellers are Done Waiting for the Fed to Lower Rates

Not everyone can wait out the toughest housing market in years.

Sellers are listing homes because they need to relocate, even if it means giving up superlow mortgage rates. Empty-nesters need to move to places without stairs and with walk-in showers. Growing families that are spilling out of starter homes need to upsize.

In year three of the Federal Reserve's high-rate policies, some home sellers and buyers are giving up waiting for the central bank to change course . With inflation still elevated, the Fed is in no rush to cut its own rates. Mortgage rates once again rose above 7% this week.

U.S. Economy A Century-Old Lending Lifeline for Troubled Banks Has a Major Flaw. The Fed Wants to Fix It.

After Silicon Valley Bank's sudden collapse last year, regulators found the California lender was unprepared to borrow from an emergency central-bank facility that might have slowed the firm's failure.

The episode is fueling a rethink of the so-called discount window, which dates to the founding of the Federal Reserve in 1913 and is its primary channel for lending directly to banks. At present, banks are desperate to avoid using it for fear of looking weak.

Financial Regulation Regulators Restart Bid to Curb Bonus Pay on Wall Street

Long-dormant efforts to restrict Wall Street pay have returned to the agenda as regulators make another push to address unfinished business from a 2010 financial overhaul. Banking regulators are planning to revive a proposal that would require big banks to defer compensation for executives and take back more of their bonuses if losses pile up, according to people familiar with the matter.

Forward Guidance Monday (all times ET)

10 a.m.: EU Flash Consumer Confidence Indicator

10:30 a.m.: Bank of Canada market participants survey

Tuesday

4 a.m.: Eurozone Flash PMI for April

7:15 a.m.: Bank of England's Pill speaks to University of Chicago Booth School of Business, London

10 a.m.: U.S. new home sales for March

10 a.m.: Richmond Fed Survey of Manufacturing Activity

Research Credit Assets' Recent Poor Performance Could Be Short-Lived

A revision in market expectations of the first Fed interest-rate cut and rising geopolitical tensions have caused credit markets to reverse the positive returns posted since the start of 2024, LBBW credit analysts Michael Koehler and Benedikt Horwedel say in a note. This weak performance is likely to continue in the short term but should return to a positive performance in the medium term, supported by better economic conditions and decelerating inflation, the analysts say. "Overall, the positive factors in the credit segment outweigh the negative ones for us in the medium term," LBBW says. "We therefore continue to regard the current setback as a healthy consolidation and not as a sustained trend reversal." - Miriam Mukuru

Basis Points The U.S. has hit Iran with a new wave of sanctions and export controls in response to the country's recent air attack on Israel, a move aimed at grounding Iran's drone program and pinching its national revenue. - Richard Vanderford The dollar was expected to weaken against a number of currencies this year. It hasn't worked out that way. Instead, the greenback has soared, squeezing traders who bet against the dollar and pushing central banks to protect their own currencies. - Weilun Soon China's benchmark lending rates were kept unchanged , official data showed on Monday, in line with market expectations after key policy rates were held steady amid signs of economic recovery. The Australian government expects to report a smaller revenue upgrade in its coming federal budget compared with previous years, as pressure mounts on global economies and inflation stays sticky. - Alice Uribe About Us

WSJ Pro Central Banking brings you central banking news, analysis and insights from WSJ's global team of reporters and editors. This newsletter was compiled by markets reporter Hardika Singh in New York. Send your tips, suggestions and feedback to [hardika.singh@wsj.com].

This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

April 22, 2024 07:15 ET (11:15 GMT)

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