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Jun 19, 2013

Fed keeps buying bonds, but sees economic risks easing

WASHINGTON, June 19 (Reuters) – The Federal Reserve on
Wednesday said risks to the outlook for the U.S. economy and job
market had eased since last fall, but it said it would keep
buying $85 billion in bonds per month given the still-high level
of unemployment.

Describing the economy as expanding moderately, Fed
officials cited further improvement in the labor market and the
housing sector, even as they noted that inflation was running
below their 2 percent long-term goal.

Jun 19, 2013

Fed keeps buying bonds at $85 bln monthly pace

WASHINGTON, June 19 (Reuters) – The U.S. Federal Reserve on
Wednesday said it would keep buying $85 billion in bonds per
month and gave no explicit indication that it was close to
scaling back the program, despite intense market speculation it
could soon start drawing it to a close.

Describing the economy as expanding moderately, Fed
officials cited further improvement in labor market conditions,
and noted inflation had been running below the Fed’s 2 percent
long term goal.

Jun 19, 2013

Fed seen keeping options open on pace of bond buying

WASHINGTON (Reuters) – Federal Reserve policymakers will likely announce on Wednesday that they will keep buying bonds at a monthly pace of $85 billion, while keeping their options open to scale back the program later this year if the U.S. labor market continues to improve.

Economic data since the 19 officials met in May has been mixed. Employment growth was steady and consumers kept spending despite the drag of tax hikes and government spending cuts. But inflation slowed further beneath the Fed’s 2 percent target.

Jun 7, 2013

Five criteria Obama may weigh in seeking Bernanke successor

WASHINGTON (Reuters) – In the summer of 2009, with the U.S. economy badly wounded and the nation’s financial calamity still a vivid memory, President Barack Obama’s closest aides began a vital discussion about who he should nominate to run the Federal Reserve.

It was, according several former insiders, a short conversation. Fed Chairman Ben Bernanke was battling resolutely to restore growth, hiring and financial stability, and little serious consideration was given to an alternative.

Jun 4, 2013

Fed’s George: Slowing bond buying appropriate next step for Fed

SANTA FE, New Mexico (Reuters) – Slowing the pace of Federal Reserve bond buying would not mean tightening U.S. monetary policy and would help wean financial markets off their dependence on ultra-easy money from the U.S. central bank, one of its senior officials said on Tuesday.

Kansas City Fed President Esther George, who said she supports slowing the pace of purchases as an “appropriate next step for monetary policy”, has been a steady critic of the program and has voted against it at every Fed meeting so far this year.

May 31, 2013

Fed’s Advisory Council of bankers warns of risks posed by QE3

WASHINGTON, May 31 (Reuters) – A Federal Reserve advisory
panel of bankers issued a stark warning to the U.S. central bank
earlier this month over the dangers of its massive bond
purchases, according to documents released on Friday.

“Current policy has created systemic financial risks and
potential structural problems for banks,” the Federal Advisory
Council noted, according to minutes of its meeting on May 17,
which the Fed posted on its public website.

May 23, 2013

IMF launches broad review on sovereign debt restructurings

WASHINGTON, May 23 (Reuters) – The International Monetary
Fund has begun to rethink how it should handle bailouts for
countries that run into financial trouble, with staff suggesting
private-sector creditors should regularly be required to bear
some of the load.

The proposal is part of a major review the IMF has launched
of its policies relating to sovereign debt restructurings that
is expected to take up to a year.

May 23, 2013

Bernanke: Decision to reduce stimulus may come in next meetings

WASHINGTON (Reuters) – The Federal Reserve’s monetary stimulus is helping the U.S. economy recover but the central bank needs to see further signs of traction before taking its foot off the gas pedal, Fed Chairman Ben Bernanke said on Wednesday.

A decision to scale back the $85 billion in bonds the Fed is buying each month could come at one of the central bank’s “next few meetings” if the economy looked set to maintain momentum, Bernanke told Congress.

May 22, 2013

Bernanke suggests Fed not ready to pull back on stimulus

WASHINGTON (Reuters) – The Federal Reserve’s monetary stimulus is helping the U.S. economy recover but the U.S. central bank needs to see further signs of traction before taking its foot off the gas, Fed Chairman Ben Bernanke said on Wednesday.

In testimony that offered little sign he is ready to retreat from the Fed’s latest round of bond buying, Bernanke emphasized the high costs of unemployment and inflation that continues to run below the Fed’s target.

May 22, 2013

Bernanke offers no hint of pullback in Fed stimulus

WASHINGTON, May 22 (Reuters) – The Federal Reserve’s
monetary stimulus is helping the U.S. economy recover but the
central bank needs to see further signs of traction before
taking its foot off the gas, Fed Chairman Ben Bernanke said on
Wednesday.

In testimony that offered no sign that he is ready to
retreat from the Fed’s latest round of bond buying, Bernanke
emphasized the high costs of unemployment and inflation that
continues to run below the Fed’s target.

    • About Alister

      "White House Correspondent. Based in the United States for six years covering the economy and Federal Reserve before moving to the White House beat. Previously reported for Reuters from Germany, South Africa, the Netherlands, the United Kingdom and Iraq."
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