FRB-NY Staff Target Consumer-Welfare Problems with Numeric Scores
A new post from Federal Reserve Bank of New York staff concurs with a recent GAO study and Senate Democratic concerns about consumer risks resulting from numeric scores for purposes other than credit reporting. GAO called for consumers to have the same transparency and error-correction rights related to scores such as those judging purchasing power or deposit activity as mandated under the FCRA for credit scores.
Treasury Reposts Crypto RFI
As Treasury for some reason today reposted its request for comment on digital assets. The release is the same as last week’s which we analyzed in today’s in-depth report (see FSM Report CRYPTO30).
OFR Report Finds CBDC Reduces Run-Risk
The Office of Financial Research today released a report concluding that – counter to many fears – a CBDC could reduce banking system run-risk. This is because a CBDC during normal times is said to lead to less maturity transformation (i.e., less intermediation), as well as the government resolving weak banks more quickly due to greater information signaling of a run evident in CBDC flows.