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Oct 11, 2013

Fed leadership change did impact communication -Powell

WASHINGTON, Oct 11 (Reuters) – A drawn-out selection process
to choose the next head of the Federal Reserve may have hurt
communication on monetary policy over the summer, a senior U.S.
central banker said on Friday.

Fed Governor Jerome Powell acknowledged financial markets
had been surprised when the central bank opted not to taper its
bond purchase program last month, and conceded there had been a
prolonged silence from policymakers ahead of the decision.

Oct 11, 2013

Fed defends ongoing stimulus, admits communications blips

WASHINGTON/NEW YORK (Reuters) – Top Federal Reserve officials said on Friday their decision not to reduce the pace of stimulus was wise given the crippling U.S. government shutdown, while admitting some recent troubles in getting their policy message across.

Fed Board Governor Jerome Powell said the central bank will maintain its ultra-easy monetary policy for quite a while longer, regardless of what decision it takes on when to change the level of its monthly bond buying campaign.

Oct 11, 2013

Questions Yellen will likely face for Fed confirmation

WASHINGTON (Reuters) – U.S. lawmakers unhappy with the Federal Reserve will have a prime opportunity to vent their concerns when the Senate Banking Committee vets Janet Yellen as next chair of the Fed, which has become a lightning rod for criticism of policy activism.

Nominated by President Barack Obama on Wednesday, Yellen immediately reinforced views that she is a monetary “dove” by noting the central bank’s duty to serve the needs of all Americans in remarks at a White House ceremony.

Oct 10, 2013

Analysis: Questions Yellen will likely face for Fed confirmation

WASHINGTON (Reuters) – U.S. lawmakers unhappy with the Federal Reserve will have a prime opportunity to vent their concerns when the Senate Banking Committee vets Janet Yellen as next chair of the Fed, which has become a lightning rod for criticism of policy activism.

Nominated by President Barack Obama on Wednesday, Yellen immediately reinforced views that she is a monetary “dove” by noting the central bank’s duty to serve the needs of all Americans in remarks at a White House ceremony.

Oct 8, 2013

SNB’s Jordan-franc cap right tool for foreseeable future

WASHINGTON (Reuters) – The Swiss National Bank will maintain its lid on the franc to ensure price stability in the foreseeable future and stands ready to enforce it with further measures if needed, Chairman Thomas Jordan said on Tuesday.

Delivering a speech on the sidelines of the annual meeting of the International Monetary Fund and ahead of a gathering of G20 finance chiefs, Jordan defended the Swiss currency regime.

Oct 4, 2013

Fed slammed for poor communication by its own Advisory Council

WASHINGTON (Reuters) – The Federal Reserve confused financial markets earlier this year by issuing a series of “cloudy and conflicting” remarks on monetary policy, according to an internal panel of advisers, who urged that it do a better job of communicating in the future.

Minutes of the September meeting of the U.S. central bank’s Federal Advisory Council, released on Friday, described in unusually critical terms a period of intense market volatility, beginning in May, that pushed borrowing costs sharply higher.

Oct 4, 2013

Fed official: New chair to face key test on keeping policy easy

By Alister Bull

(Reuters) – The key challenge for the next chair of the Federal Reserve will be resisting pressure for a premature tightening in monetary policy, a senior U.S. central banker said on Friday.

Narayana Kocherlakota, president of the Minneapolis Federal Reserve and one of several policy doves arguing the case for more action to spur U.S. hiring, said most observers think the main problem for the Fed will be ending ultra-easy money. He said it is not.

Sep 26, 2013

Analysis: Senate math is in Yellen’s favor for Fed confirmation

WASHINGTON (Reuters) – There is no such thing as an easy vote in the current U.S. Senate, but Janet Yellen should have a relatively smooth path to confirmation if she is nominated by President Barack Obama to head the Federal Reserve.

Obama is expected to announce his decision in coming weeks and a White House official has said Yellen, 67, the Fed’s vice chair, is the leading choice to succeed Fed Chairman Ben Bernanke when his term expires in January.

Sep 24, 2013

Fed following up on report of unusual trading around FOMC statement

WASHINGTON (Reuters) – The U.S. Federal Reserve said on Tuesday it was following up with news organizations over a report of unusual trading around the release of its monetary policy statement last week.

The report by CNBC television cited a wave of trading activity in Chicago at 2:00 pm ET (1800 GMT) on Wednesday that appeared milliseconds ahead of other trades based on the Fed’s surprise announcement that it was not tapering its bond buying.

Sep 19, 2013

Fed surprises, sticks to stimulus as it cuts growth outlook

WASHINGTON, Sept 18 (Reuters) – The U.S. Federal Reserve
defied investor expectations on Wednesday by postponing the
start of the wind down of its massive monetary stimulus, saying
it wanted to wait for more evidence of solid economic growth.

Investors responded by propelling U.S. stocks to record
highs and driving down bond yields. Yields on U.S. Treasury debt
had risen over the summer on expectations the Fed would cut
back its $85 billion a month in bond purchases that have been
the cornerstone of its efforts to spur the economy.

    • 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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