Investors largely expected the FOMC to cut rates by a quarter point.The Fedread more
The interest on excess reserves now stands at 1.8%, a 30 basis point cut compared with the 25 basis point reduction for the benchmark funds rate.The Fedread more
The decision to cut rates followed a monthslong pressure campaign by Trump, who often criticized Chairman Jerome Powell by name as he called for lower interest rates.Politicsread more
Stocks traded lower on Wednesday as traders digested the Federal Reserve's latest decision on U.S. monetary policy.US Marketsread more
The Federal Reserve dialed up its growth expectations slightly while keeping its inflation projection unchanged.Marketsread more
This is a comparison of Wednesday's FOMC statement with the one issued on July 31 after the Fed's previous policymaking meeting.The Fedread more
Ahead of the Fed's 2 p.m. announcement, many economists were forecasting one further cut in 2019, but some investors were hoping for two more this year.The Fedread more
The Fed has become increasingly divided, with three officials voting against the Fed's quarter-point cut to the fed funds target rate range.Market Insiderread more
For consumers, lower rates do mean cheaper loans, which can impact your mortgage, home equity loan, credit card, student loan tab and car payment. n the flip side, you'll earn...Personal Financeread more
Gold edged lower on Wednesday but held about the key $1,500 per ounce level after the U.S. Federal Reserve decided to cut interest rates.Futures & Commoditiesread more
(Adds sector details)
WASHINGTON, Sept 5 (Reuters) - The U.S. banking sector reported $62.6 billion in profits for the second quarter of 2019, a 4.1% increase from the year-ago period, according to data from the Federal Deposit Insurance Corporation (FDIC).
The FDIC said the profits were driven by higher net interest income.
The FDIC also reported that the number of "problem banks" fell from 59 to 56 in the second quarter, the lowest level since the first quarter of 2007.
Five new U.S. banks opened during the second quarter while one institution failed, the FDIC said.
Community banks' average net interest margins, a key measure of bank profitability, continued to increase to $6.9 billion, an 8.1% jump from a year ago.
The FDIC data showed that more farmers were falling behind on loans held by community banks compared with a year earlier, and that it was watching risks in the agriculture sector.
Large institutions have benefited more than community banks from rising short-term interest rates, the FDIC data showed. Given the recent cuts in short-term interest rates by the U.S. Federal Reserve, the banking regulator said it could see a future reversal of the trend.
"Awareness of interest rate, liquidity, and credit risks at this stage of the economic cycle will position banks to be more resilient in maintaining lending through the economic cycle," said Jelena McWilliams, head of the FDIC. (Reporting by Katanga Johnson Editing by Chizu Nomiyama and Marguerita Choy)