Yellen says Fed looking at possible commodities, bank rules

By Kin Talk on Thursday, November 14, 2013 with 0 comments

The U.S. Central Bank may issue new rules for Wall Street's role in commodity markets once it finishes with a review of banks' raw materials trading, Janet Yellen told lawmakers.

In July, the Fed said it was reviewing a resolution to permit regulated banks to trade in physical commodities, resulting in the banks' ownership of assets such as oil storage tanks and power plants. 

"We may be involved in additional rule-making as we complete this review," the prospective new head of the Fed told the Senate Banking Committee on Thursday at a hearing into her nomination to lead the foremost U.S. bank regulator.

McDonald's to spend up to $3 billion on new restaurants, remodeling

The world's biggest hamburger chain said on Thursday that it is looking to spend $2.9 billion to $3 billion in 2014 to open 1,500 to 1,600 new restaurants and revamp about 1,000 others - mostly in line with this year's reduced spending projections.

McDonald's Corp (MCD.N), which recently has found it difficult to significantly expand sales at established restaurants after years of beating its competitors, last month cut its 2013 capital spending outlook by $100 million to $3 billion and delayed some new restaurant openings until 2014 due to some weakness in the Chinese economy and some other emerging market economies.

The company known for Big Mac hamburgers and skinny, crispy french fries also offered 2014 forecasts for commodity costs and other expenses.

It estimates total commodity costs for next year to rise 1-2% in the U.S. and 1.5-2.5% in Europe.

Category: Market Events

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