Editor's Note: This is a monthly publication on economic trends and financial policy issues. In this publication you can read "The Longbrake Letter", an analysis of economic trends and conditions written by Bill Longbrake, as well as commentary on financial regulation and policy written by members of the law firm Barnett, Sivon & Natter, P.C., a Washington, DC based law firm that specializes in financial services law. The lawyers in the firm are also counsel to the international law firm, Squire Patton Boggs.

ISSUE: #72, June 2016

The Longbrake Letter
- Bill Longbrake
The US and global economies are marking time while imbalances continue to build slowly. But, there were two surprising, and not necessarily related, events in June the US May employment report was dismal; the Federal Open Market Committee (FOMC) slashed interest-rate projections. In this month's letter Bill Longbrake explains why neither of these developments is all that surprising. Slower employment growth and low interest rates are here to stay. He believes that the FOMC's interest rate projections are still too high.

Language Preference on URLA Rebuilding the Tower of Babel
- Bob Barnett
FHFA should not permit the GSEs to modify the Uniform Residential Loan Application to mandate the collection of language preference for each borrower without first publishing the change and receiving and considering comments by the public on it. The consequences of what may appear to be an innocuous change are substantial and worth serious and thorough review by the public.

The Basel Committee Strikes Again: Long-Term Liquidity Rules
- Ray Natter
In recent years the Basel Committee has taken on a leading role in developing bank regulatory policies in the U.S. Unfortunately, these policies do not always appreciate the unique institutions and structure of the U.S. financial system The recent Basel long-term liquidity agreement provides a good example of how the Basel Committee's mandates may not be appropriate for the U.S. system.

The CFPB Is At It Again
- Don Lamson
The Bureau of Consumer Financial Protection recently has proposed rules to increase regulation of payday lenders to prevent customer abuse. Weighing in at over 1300 pages, the proposal presents a potentially paternalistic approach that could be extended on a far wider scale, to the detriment of the rights of states to regulate commerce within their boundaries.