News and Commentary
David Roberts of Vox covers a new climate change paper from The Great Democracy Initiative at the Roosevelt Institute. The paper argues that Dodd-Frank’s Section 165 and FSOC could be broadly applied by the president to require financial institutions price climate risk into their operations.
The Mercatus Center put out a new policy brief on the Securities and Exchange Commission (SEC) that reviews Regulation Best Interest and the potential negative effects of legally requiring brokers to follow such a rule.
The University of Chicago’s Pro-Market blog reports that Americans report all-time record high levels of trust in banks and large corporations. The Financial Trust Index has been collecting surveys since 2008 and finds gains in financial trust over the past years but steady low trust in the government.
The Bank Policy Institute reviews the Federal Reserve’s most recently published stress scenario which provides a global recession significantly more severe than in last year’s test. However, the authors caveat that it is unclear how much more severe it will be for a variety of factors.
The Cato Institute published a new paper on central bank independence by Paul Wachtel and Mario I. Blejer. The paper reviews the origin and evolution of such independence, granting credit for its role in global disinflation while also noting the shortcomings that arise with a narrow sense of central bank functions.