Risk of Interest Rates Rising and Government Shutdown

Welcome back to the Risk Queue,

This week, we’re diving into variety of risk topics that will pique your interest.

Join me on the journey by subscribing here! 

Thank you,

Naeem Qasim

CEO & Founder, Risk On Q

Risk Headlines

Fed President believes Interest Rates will need to move significantly higher to bring down inflation.  

Key Points:

• Fed officials have indicated the expectation of keeping rates elevated for an extended period, as concerns about persistent inflation will likely cause potential rate hikes before year end. Where will the price of general goods go, prediction egg prices will set new record highs.

• Kashkari thinks the Fed’s benchmark rate will need to rise to at least 4.5%-4.75% by early next year from the current range of 3%-3.25%. JPMorgan Chase CEO Jamie Dimon entertains the possibility of the Fed raising its benchmark rate to 7%, if this prediction happens is the economy then in a recession.

You can read the full story at CNBC here. 

A. I. Risk / Technology Risk

UK to Host AI Safety Summit - from UK.gov

New SEC Rules Effective mid-December for Reporting Cybersecurity Incidents - from SC Media

Fines & Losses

SEC fines Deutsche Bank $25 million, ESG misstatements & AML violations - Source WSJ.com

Public Company Accounting Oversight Board (PCAOB) fines BDO USA $2 million for violation to audit rules and standards - Source PCAOB

Giving Back: Wall Street Furious Over Rising Fines Source WSJ

Career

The Most Powerful Women in Finance 2023 Source American Banker

Emerging Risk

Shutdown Odds Grow as Senate, House Propose Separate Spending Plans - Source Reuters

Risk Data to Geek Out On

A Guide to the Rulemaking Process - Source Reginfo.gov

Last week we discussed the U.S. Financial Regulatory Structure and an image depicting the scope and scale of Regulatory bodies were provided. This week we are taking a look the rule-making process of how federal agencies create and implement regulations.

The rulemaking process allows for public input and requires agencies to consider all evidence submitted. Stakeholders should engage to help shape the final rule.

Your Input 

Thanks for reading.

Until next time!

Naeem

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