Biden vetoes GOP-led effort to strike down student loan forgiveness program
The student loan forgiveness program faces legal challenges, and the Supreme Court is set to issue a ruling on its legality before the end of June.
Banking & Finance
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‘Skip’ or ‘pause’? Fed unlikely to raise rates next week, but maybe next month
When the Federal Reserve meets next week, it is widely expected to leave interest rates alone—after 10 straight meetings in which it has jacked up its key rate to fight inflation. But that doesn’t mean its done with hikes.
U.S. crypto crackdown reaches fever pitch as SEC sues Coinbase
The Securities and Exchange Commission widened its sweeping crackdown on crypto by accusing Coinbase Global of running an illegal exchange, a move that could make it harder for the industry to operate and for U.S. citizens to trade.
Indiana’s largest credit union changing its name
Teachers Credit Union on Tuesday said the rebranding better reflects its “mission to empower and serve all people and grow beyond its original educator roots.” It will also mean a name change for TCU Amphitheater at White River State Park.
Rising interest rates pinch small-business borrowers
The average prime rate, or the rate banks set as a reference for customer loans, was 4%. The prime rate has more than doubled since then, hitting 8.25% in May.
Don’t store money in Venmo, Cash App or PayPal, regulator says
A federal consumer watchdog on Thursday warned consumers that money kept in payment apps is not automatically insured by the government and could be completely lost if the companies fail.
Senate rejects Biden’s student loan forgiveness program
While President Biden has promised to veto the bill, the vote in the Senate, in which two Democrats and an independent sided with Republicans, shows the divisiveness of the student loan policy and the difficulty of getting any future plan through Congress.
Fed likely to skip interest-rate hike in June, officials signal
Leading Federal Reserve officials are sending out stronger signals that they will forego an increase at the central bank’s next meeting, though they indicate hikes could resume later this year.
PNC Bank to close one of its downtown branches
In a letter to customers, PNC said it plans to close the branch in mid-August while leaving its other downtown branch open.
Federal Reserve officials split over what to do next to fight inflation
The stubbornness of high inflation is dividing the Federal Reserve over how to manage interest rates, leaving the outlook for the Fed’s policies cloudier than at any time since it unleashed a streak of 10 straight rate hikes.
Cummins filtration business targets $341M in IPO
In April 2022, Cummins announced plans to spin off the business, then known as Cummins Filtration, which provides filtration products for trucks, off-highway industrial equipment and power generation systems.
Indianapolis VC firm Ivy Ventures launches with $20M fund
Local entrepreneur and general partner Scott Kraege co-founded Ivy Ventures with Mike Reynolds, CEO of Indianapolis-based Innovatemap, and John Wortman, CEO and co-founder of Carmel-based Valeo Financial Advisors LLC.
Banks report tougher credit standards in wake of failures
A Federal Reserve report shows that banks raised their lending standards for business and consumer loans in the aftermath of three large bank failures. It’s a trend that could slow the economy in coming months.
Yellen: ‘No good options’ if Congress fails to act on debt
Treasury Secretary Janet Yellen’s comments added even more urgency to a high-stakes meeting Tuesday between President Joe Biden and congressional leaders from both parties.
As Fed examines banking woes, small businesses already feel the crunch
All over the country, small-business owners are feeling the early consequences of this spring’s banking crisis, which spanned two chaotic weeks in March and is still ricocheting through the economy.
FDIC recommends raising insured deposit limit for businesses
U.S. businesses might be able to secure bank deposit insurance for accounts holding more than $250,000 if Congress agrees with the Federal Deposit Insurance Corp.’s new proposal.
Fed set to raise rates yet again. What comes next is unclear.
Another quarter-point rate increase on Wednesday would leave the Fed’s key rate at 5.1%—a 16-year high and a full 5 percentage points higher than in March 2022.
IBJ Podcast: Pete the Planner on death, divorce and other edgy questions in personal finance
In this 250th episode of the IBJ Podcast, Peter “Pete the Planner” Dunn answers some of the most sensitive questions in personal finance.
Banks paying savers again after years of low rates
Banks were initially slow to raise their payouts as the Fed raised rates because they were awash in deposits. But those deposits have shrunk over the past year because inflation forced consumers and businesses to dip into their savings.
Average income tax refund smaller than last year’s
The filing deadline for most taxpayers is Tuesday, though it has been extended for parts of Indiana, California, Alabama, Georgia, New York, Tennessee, Arkansas and Mississippi that were hard hit by severe weather.