Interest rates

A recent deal involving a troubled Texas bank shows that even the most lopsided depository can find an exit.

Bond yields are shooting up for the second time in as many months. Federal Reserve Gov. Christopher Waller attributes the volatility to concerns about rising national debt levels.

"I worry a lot about the inflation side, and mainly because we're seeing expectations move in a troublesome way," Federal Reserve Bank of Atlanta President Raphael Bostic said.

The Bureau of Labor Statistics reported that the economy grew 177,000 jobs in April, beating expectations and giving the Federal Reserve little reason to adjust interest rates in the near term.

For the first time in four years, more small businesses reported a drop in income than an increase, according to a survey by the 12 regional Federal Reserve banks.

The nation's central bank held interest rates steady in its first decision of the year.

The Labor Department estimates the economy added 256,000 jobs in December, indicating a resilient economy and labor market. For the Federal Reserve, which was already signaling a slowdown in rate cuts, the reading could justify holding rates steady.

The financial data firm Intercontinental Exchange is buying the firm that runs the Ameribor interest rate benchmark, which some community and regional banks back as a LIBOR alternative.

The industry should save on interest expenses this year as it follows the Fed's lead in cutting rates. The downside is that the lower deposit rates signal fewer opportunities to make loans.

The Federal Reserve Bank of Richmond president said while he believes the central bank's current level of rates is restraining the economy enough to continue lowering inflation in 2025, there are still upside risks to inflation and growth.