WASHINGTON, April 17 (Reuters) – U.S. Treasury Secretary
Jack Lew warned his partners in the Group of 20 on Wednesday
against the perils of “beggar thy neighbor” currency
devaluations, picking out China for special mention on the eve
of a G20 meeting here on global growth.
Lew also underlined the importance of stronger demand in
Europe for the world economy, keeping up Washington’s coded
pressure on Germany to loosen policies to provide more support
to weaker euro zone members in the bloc’s south.
WASHINGTON (Reuters) – The economy posted a moderate pace of growth between late February and early April, the Federal Reserve said on Wednesday, supported by rising home prices and stronger factory activity.
The account by the Fed’s 12 regional banks was a bit more upbeat than the previous Beige Book survey, with Dallas and New York noting a slight acceleration in the pace of expansion, while five saw growth as moderate, and the other five as modest.
April 13 (Reuters) – Federal Reserve policymakers went out
of their way on Saturday to play down the risk that aggressive
measures to bolster the U.S. economy would lead to inflation in
the future, in a clear signal of support for its ongoing actions
to spur growth.
The U.S. central bank last month maintained a controversial
program of buying $85 billion of bonds a month, while pledging
to keep interest rates near zero until unemployment hits at
least 6.5 percent, so long as inflation stays under 2.5 percent.
By Alister Bull
(Reuters) – U.S. inflation is under control and is going to stay that way because the Federal Reserve will “easily” spot the conditions that could erode price stability, and has the tools to tighten policy when needed, a top U.S. central banker said on Saturday.
Atlanta Federal Reserve President Dennis Lockhart acknowledged that inflation expectations might be fanned by rapid credit growth as the economy picked up steam, as a result of the aggressive actions taken by the central bank.
WASHINGTON (Reuters) – The Federal Reserve launched an investigation on Wednesday into one of the U.S. central bank’s worst security lapses in years, but said it appeared that the early release of market-sensitive minutes of a policy meeting had been “entirely accidental.”
Minutes of Fed meetings can shed vital light on the future path of U.S. monetary policy and frequently impact financial markets worldwide. As such, they are guarded by elaborate security measures.
RICHMOND, Virginia (Reuters) – Globally active U.S. banks may need to overhaul their operating structures to draw up realistic resolution plans, or ‘living wills’, a senior Federal Reserve official said on Tuesday, but that is the price for ending ‘too big to fail’.
“Credible living wills may require significant changes for financial firms. They could lead to more capital, less complex relationships among affiliates and perhaps even to smaller firms,” said Richmond Fed Bank President Jeffrey Lacker. “‘Too big to fail’ is unsustainable.”
EL RENO, Oklahoma (Reuters) – Ultra-easy Federal Reserve policy risks financial instability and future inflation, Kansas City Federal Reserve President Esther George warned on Thursday, as she explained her decision to dissent at her second meeting in a row last month.
Noting that recent data on the state of the labor market had been encouraging, and the recovery seemed to be on track for a gradual recovery, George said growth remained slow.
RICHMOND, Virginia (Reuters) – One of the Federal Reserve’s most hawkish officials confronted one of the institution’s most dovish policymakers on Tuesday in a rare joint public debate over the risks posed to inflation by the U.S. central bank’s bold steps to spur growth.
Policy dove Charles Evans, president of the Federal Reserve Bank of Chicago, and anti-inflation hawk Jeffrey Lacker, chief of the Richmond Fed, sparred pointedly and respectfully disagreed.
Spring is in the air and U.S. growth is getting unexpected support from the nation’s doughty consumers.
Despite higher taxes, households are lifting spending, begging the question of how much momentum will carry into the second quarter and what it means for Fed bond purchases.
WASHINGTON (Reuters) – Economic growth in China faces mounting headwinds and could fade dramatically in the years ahead due to declining productivity and an aging population, according to a U.S. Federal Reserve study.
Trend growth could slow gradually to around 6.5 percent by 2030, or it could break much more sharply to a pace under 1 percent if forces undermining economic activity combine in a “worst-case scenario,” according to the study, which was published online on Monday. Over the past decade, China’s economy grew on average around 10 percent a year.