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Nov 14, 2012

Fed policymakers see more bond buying in 2013

WASHINGTON, Nov 14 (Reuters) – A number of Federal Reserve
officials thought the U.S. central bank would need to step up
asset purchases next year to fill the gap when their Operation
Twist program expires, minutes of the Fed’s October meeting
showed.

The minutes, released on Wednesday, also revealed that
officials felt their decision to launch a third round of
so-called quantitative easing, or QE3, had eased financial
conditions and helped support a recovery in U.S. housing.

Nov 12, 2012

Republicans say deal can be done on U.S. “fiscal cliff”

WASHINGTON (Reuters) – A senior Republican senator voiced confidence on Sunday that U.S. lawmakers would forge a deal on the year-end “fiscal cliff,” while a top aide to President Barack Obama signaled a willingness to compromise over raising tax rates on the rich.

Republican Senator Bob Corker said increasing tax revenues from wealthier Americans would have to be part of the plan, but he stressed closing loopholes rather than raising top tax rates as many Democrats favor, provided spending is also tackled.

Nov 11, 2012

Republicans say deal can be done on “fiscal cliff”

WASHINGTON (Reuters) – A senior Republican senator voiced confidence on Sunday that U.S. lawmakers would forge a deal on the year-end “fiscal cliff,” while a top aide to President Barack Obama signaled a willingness to compromise over raising tax rates on the rich.

Republican Senator Bob Corker said increasing tax revenues from wealthier Americans would have to be part of the plan, but he stressed closing loopholes rather than raising top tax rates as many Democrats favor, provided spending was also tackled.

Nov 9, 2012

U.S. economy improving, Operation Twist may not be extended – Bullard

LOUIS (Reuters) – The U.S. economy is strengthening but leaders must tackle a looming “fiscal cliff,” a top Federal Reserve official said on Thursday, adding that he doubted the central bank would extend a bond maturity extension program that expires at end-2012.

“It is of critical importance that the president and Congress get together and get to a solution on this,” St. Louis Federal Reserve President James Bullard told reporters. “This could cause tremendous damage to the U.S. economy if it is not addressed in an appropriate way.”

Nov 9, 2012

Economy improving, must avoid “fiscal cliff”: Fed’s Bullard

LOUIS (Reuters) – The economy has managed to gather some strength but it is vital that the country’s leaders tackle a looming “fiscal cliff” or risk doing the recovery serious damage, a top Federal Reserve official said on Thursday.

“It is of critical importance that the president and Congress get together and get to a solution on this,” St. Louis Federal Reserve President James Bullard told reporters. “This could cause tremendous damage to the U.S. economy if it is not addressed in an appropriate way.”

Oct 31, 2012

Bank loan standards ease, loan demand up: Fed survey

WASHINGTON (Reuters) – The U.S. Federal Reserve said on Wednesday that some banks kept easing standards for lending to businesses and consumers in the last three months, while a number reported better borrower appetite for real estate and auto loans.

“Significant fractions of banks reported a strengthening of demand for commercial real estate loans, residential mortgages, and auto loans, on balance,” the Fed said in its October survey of senior loan officers. “Demand for most other types of loans was about unchanged.”

Oct 31, 2012

Euro zone crisis crimped European bank dollar lending: Fed

WASHINGTON (Reuters) – The euro zone crisis reduced the dollar lending of European banks as doubts over their credit-worthiness made their access to dollar funding more expensive, according to a Federal Reserve research paper published on Wednesday.

The study, co-authored by Fed Governor Jeremy Stein and two Harvard economists, stopped short of arguing that the European crisis caused U.S. credit conditions to tighten and said U.S. and other foreign banks could have filled the lending gap.

Oct 25, 2012

Pinched US savers seen as part of slow recovery puzzle

WASHINGTON, Oct 25 (Reuters) – The Federal Reserve’s
strategy of holding interest rates near zero to spur the U.S.
economy is creating a level of uncertainty for American savers
that may be softening the policy’s punch.

The central bank has held overnight interest rates near zero
since late-2008, and it reiterated on Wednesday that it expects
to keep them there through at least the middle of 2015.

Oct 24, 2012

Fed sticks to stimulus plan, says economy a bit firmer

WASHINGTON (Reuters) – The Federal Reserve on Wednesday stuck to its plan to keep stimulating U.S. growth until the job market improves even as it acknowledged some parts of the economy were looking a bit better.

In a statement after a two-day meeting, the central bank repeated its vow to keep rates near zero until mid-2015 and its pledge to keep supporting growth while the recovery strengthens.

Oct 18, 2012

Fed to stand pat next week as election nears

WASHINGTON, Oct 18 (Reuters) – The U.S. Federal Reserve is
likely to hold off from taking fresh steps at a policy meeting
next week, opting to review the impact of the significant action
it took last month and keep a low profile in its last gathering
before the Nov. 6 general election.

Economic data has improved since the central bank announced
a third round of bond purchases in September, but the jobless
rate is still painfully high at 7.8 percent and gives the Fed no
reason to scale back its aggressive economic stimulus.

    • 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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