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Diane Swonk stated that the U.S. banking system is not showing signs similar to those of 2008 but warned that its margin for error is decreasing.
Swonk attributed this conclusion to new research from the Federal Reserve Bank of New York.
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Earlier this month, Diane Swonk reported that the Federal Reserve is expected to skip a rate hike in October as noted by Cleveland Fed President Beth Hammack (see article). Swonk previously highlighted that U.S. payrolls rose by 165,000 and unemployment fell to 4.1%, which could support a Federal Reserve rate hike in December (see article). These updates provide context for her latest comments on banking system risks.