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Oct 30, 2013

Fed maintains strong stimulus as U.S. growth stumbles

WASHINGTON, Oct 30 (Reuters) – The Federal Reserve extended
its support for a slowing U.S. economy on Wednesday, sounding a
bit less optimistic about growth and saying it will keep buying
$85 billion in bonds per month for the time being.

In announcing the widely expected decision, Fed officials
nodded to weaker economic prospects due in part to a fiscal
fight in Washington that shuttered much of the government for 16
days earlier this month.

Oct 30, 2013

U.S. Federal Reserve to maintain aggressive policy stimulus amid soft data

WASHINGTON (Reuters) – The Federal Reserve is expected to maintain its massive bond-buying campaign when it concludes a two-day meeting on Wednesday and may point to softer readings on the U.S. economy to signal that the policy will be extended into 2014.

The central bank, which will announce its policy decision at 2 p.m. (1800 GMT), has held interest rates near zero since late 2008 and has quadrupled the size of its balance sheet to more than $3.7 trillion through three rounds of bond buying. The purchases are aimed at holding down longer-term borrowing costs.

Oct 30, 2013

Fed to maintain aggressive policy stimulus amid soft data

WASHINGTON (Reuters) – The Federal Reserve is expected to maintain its massive bond-buying campaign when it concludes a two-day meeting on Wednesday and may point to softer readings on the U.S. economy to signal that the policy will be extended into 2014.

The central bank, which will announce its policy decision at 2 p.m., has held interest rates near zero since late 2008 and has quadrupled the size of its balance sheet to more than $3.7 trillion through three rounds of bond buying. The purchases are aimed at holding down longer-term borrowing costs.

Oct 27, 2013

Fed to hold its fire this week, wants clearer economic view

WASHINGTON (Reuters) – Federal Reserve officials are unlikely to make any shift to monetary policy this week as they wait for more evidence of how badly Washington’s budget battle has hurt the U.S. economy.

Indeed, they could stand pat for the rest of the year.

“I would say January or March at this point,” said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida, on when the Fed would begin to scale back its bond-buying stimulus. “Odds for December are less than 50/50.”

Oct 18, 2013

Washington budget battle may delay Fed taper until 2014

WASHINGTON (Reuters) – The Federal Reserve may have to wait until early next year before it sees sufficient strength in the U.S. economy to begin scaling back its bond-buying stimulus, after a destructive Washington budget battle that may take a bite out of growth.

Complicating the Fed’s task, a 16-day government shutdown choked off the flow of much of the economic data on which it relies and could undermine the quality of the reports covering October.

Oct 17, 2013

Fed’s George still favors an October taper

WASHINGTON (Reuters) – The U.S. central bank should start scaling back its bond-purchase program this month, Kansas City Federal Reserve President Esther George said on Thursday, repeating her view that the Fed ought to begin normalizing monetary policy.

“I think to start that now would give us time to see how the economy reacts to that and not get behind in meeting our responsibilities,” she told an event in Oklahoma City.

Oct 17, 2013

Analysis: Washington budget battle may delay Fed taper until 2014

WASHINGTON (Reuters) – The Federal Reserve may have to wait until early next year before it sees sufficient strength in the U.S. economy to begin scaling back its bond-buying stimulus, after a destructive Washington budget battle that may take a bite out of growth.

Complicating the Fed’s task, a 16-day government shutdown choked off the flow of much of the economic data on which it relies and could undermine the quality of the reports covering October.

Oct 16, 2013

U.S. economy was steady as budget battle began: Fed

WASHINGTON (Reuters) – The U.S. economy was sailing smoothly, if not swiftly, before parts of the government shut down this month, according to a snapshot from the Federal Reserve on Wednesday that provided the fullest view of the recovery since federal data dried up.

The Fed’s Beige Book report suggested the economy’s momentum was solid through September and into early October, although confidence had been tempered somewhat by uncertainty caused by budget battles in Washington.

Oct 15, 2013

Nobel winner warns of “bubbly” global home prices

WASHINGTON/STOCKHOLM (Reuters) – One of three American economists who won the 2013 economics Nobel prize on Monday for research into market prices and asset bubbles expressed alarm at the rapid rise in global housing prices.

Robert Shiller, who shared the 8 million Swedish crown (775,000 pound) prize with fellow laureates Eugene Fama and Lars Peter Hansen, said the U.S. Federal Reserve’s economic stimulus and growing market speculation were creating a “bubbly” property boom.

Oct 14, 2013

Americans win Nobel prize for work on predicting markets

STOCKHOLM/WASHINGTON (Reuters) – Three American scientists won the 2013 economics Nobel prize on Monday for research that has improved the forecasting of long term asset prices, a hot topic since the collapse of the U.S. housing market bubble prompted a global financial meltdown.

“There is no way to predict the price of stocks and bonds over the next few days or weeks,” The Royal Swedish Academy of Sciences said in awarding the 8 million crown ($1.25 million) prize to Eugene Fama, Lars Peter Hansen and Robert Shiller.

    • 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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