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Federal Reserve Vice Chair for Supervision Michelle Bowman announced plans to reorganize U.S. bank supervision into five geographic regions led by regional leaders. The central bank also plans to review fixed asset thresholds that determine when banks face stricter capital, liquidity and stress-testing requirements. Key Takeaways The Federal Reserve plans to establish five geographic regions for bank supervision. Each region will have a designated leader overseeing supervisory activity. Regional Reserve Bank staff will continue conducting bank examinations. Bowman plans to begin interviewing candidates for regional leadership positions early next year. The Fed will consider updating fixed-dollar asset thresholds and potentially adjusting them every five years for inflation and economic growth. Federal Reserve Plans Five Regional Bank Supervision Areas The Federal Reserve plans to replace its existing bank-supervision structure with five geographic regions, according to the plan announced by Bowman. Each region will have a regional leader responsible for overseeing supervisory activity. The proposed structure changes the organization of responsibility rather than removing the regional Reserve Banks from the examination process. Staff at those Reserve Banks will continue conducting supervision of banks under the new arrangement. The five-region model is intended to establish a clearer line of responsibility for supervisory decisions.
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Alaska LNG Project Tests U.S. Energy Infrastructure Economics
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U.S. Services Growth Slows as Price Pressures Increase
U.S. services activity continued to expand in September, although the pace of growth moderated as businesses reported stronger input-price pressures. The Institute for Supply Management’s services survey showed continued expansion alongside a rise in its prices index, providing another measure of business costs and the broader inflation environment. Key Takeaways The ISM Services PMI fell to 54.9 in September from 55.4 in August The Services Prices Index rose to 74.0 from 72.6, its highest level since July 2022 The Business Activity Index declined to 56.5 from 61.7 The Services Employment Index returned to expansion territory at 50.1 after two months below 50 Supplier deliveries remained slower for a 22nd consecutive month U.S. Services Growth Remains in Expansion Territory The ISM Services PMI fell to 54.9 in September from 55.4 in August but remained above 50, the threshold associated with expansion. The result indicated that service-sector activity continued to grow at a slightly slower pace. The Institute for Supply Management survey tracks several areas of the U.S. services economy, including business activity, new orders, employment, prices, and supplier deliveries. The Business Activity Index recorded a larger monthly decline, falling to 56.5 from 61.7. Despite the decrease, the measure remained in expansion
Neel Kashkari Sees More Fed Rate Hikes Ahead Into 2027
Minneapolis Federal Reserve President Neel Kashkari said he expects additional interest-rate increases may be needed into 2027, while
Bank of America Adds AI Analytics to Corporate Treasury
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U.S. Jobless Claims Fall to 197,000 in Latest Report
U.S. jobless claims fell to 197,000 for the week ending September 19, according to the Labor Department, marking the lowest level since mid-July. The decline came as layoffs remained limited, providing a fresh reading on labor-market conditions ahead of the next monthly employment report. Key Takeaways Initial unemployment claims fell
U.S. Critical Minerals Strategy Faces Refining Gaps
U.S. efforts to strengthen critical-mineral supply chains have reduced China’s share of rare-earth refining, but China’s broader position in mineral processing remains strong. International Energy Agency data cited in a September 15 report showed China’s average share of non-rare-earth critical-mineral refining increased from 70% in 2023 to 72% in 2025.
U.S. Producer Prices Rise 5.4%, Raising Fed Rate Hike Bets
U.S. producer inflation accelerated in August, with prices for final demand rising 0.4% from July and 5.4% over the previous 12 months, according to the Bureau of Labor Statistics. The report increased market expectations for a Federal Reserve rate hike at the central bank’s September 15–16 meeting, placing greater attention
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U.S. Services Input Costs Reach Highest Level Since 2022
U.S. services businesses reported a sharp increase in the prices they paid for inputs in August, with the Institute for Supply Management’s Services Prices Index reaching 72.6, its highest reading since August 2022. Services activity and new orders also strengthened, providing fresh data on business costs and inflation pressures. Key
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U.S. Manufacturing Activity Reaches Four-Year High in July
U.S. manufacturing activity reached its highest level in more than four years in July, according to the Institute for Supply Management. Stronger factory orders and hiring supported the expansion, while elevated input costs and supply-chain disruptions continued to influence inflation and production conditions. Key Takeaways U.S. manufacturing activity rose to
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