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Dollar edges higher as Fed rates view sets direction

NEW YORK (Reuters) -The dollar edged higher on Tuesday in thin holiday trading as the expected slower path of interest rate cuts from the U.S. Federal Reserve compared with other global central banks continued to command market direction. The greenback has jumped more than 7% since the end of September, powered in part by growing expectations the U.S. economy will see accelerated growth under policies from President-elect Donald Trump, while sticky inflation has dampened expectations on how aggressive the Fed will be in reducing interest rates. Those expectations for the U.S. stand in contrast to growth forecasts and the interest rate views for other global economies and central banks, which have led to expanding interest rate differentials.

Banks Sue Fed in Challenge to How Stress Tests Are Conducted

(Bloomberg Law) -- The Federal Reserve doesn’t allow for appropriate public input when designing bank stress tests, bank trade groups said in a lawsuit seeking to force the central bank to open the design of the tests to public comment.Most Read from BloombergHo Chi Minh City Opens First Metro Line After Years of DelayThe suit, filed Tuesday in the US District Court for the Southern District of Ohio, doesn’t seek to eliminate the annual stress testing and capital planning requirements that have

Big banks, business groups sue US Fed over annual stress tests

(Reuters) -Major banks and business groups sued the Federal Reserve on Tuesday, alleging the U.S. central bank's annual "stress tests" of Wall Street firms violate the law. The lawsuit filed in U.S. District Court in Columbus, Ohio, claims the Fed's practice of determining how big banks perform against hypothetical economic turmoil, and assigning capital requirements accordingly, do not follow proper administrative procedure. Plaintiffs included the Bank Policy Institute, the U.S. Chamber of Commerce and the American Bank Association.