WASHINGTON (Reuters) – What a difference a year makes.
Federal Reserve Chairman Ben Bernanke used the 2012 meeting in Jackson Hole as a platform to make his case for a third round of bond buys. This year, with the Fed chief absent, the tone was starkly different as featured research papers questioned the value and efficacy of the central bank’s unconventional stimulus policies.
Robert Hall of Stanford University argued that unconventional monetary policies have been largely ineffective because of the constraints posed by official interest rates that are already effectively at zero. He also dismissed the beneficial effects of the central bank’s attempt to provide “forward guidance” to financial markets.
JACKSON HOLE, Wyoming (Reuters) – Central banks in Europe, the United States and Japan have no need to rush to exit the ultra-easy monetary policies they have put in place to spur growth, IMF Managing Director Christine Lagarde said on Friday.
But in prepared remarks at the U.S. Federal Reserve’s annual Jackson Hole policy symposium, she also said that central banks must work with each other to minimize spillover from any withdrawal of policy accommodation that could stifle world growth.
, Aug 23 (Reuters) – The biggest risk
facing the U.S. economy is a premature policy tightening by the
Federal Reserve, officials were warned on Friday in the opening
paper at the prestigious Jackson Hole symposium.
The annual conference, hosted by the Kansas City Federal
Reserve Bank in the mountains of Grand Teton National Park,
gathers central bankers from around the world and provides an
update on the latest thinking among top monetary economists.
WASHINGTON (Reuters) – Central bankers from around the globe gather later this week in Jackson Hole, Wyoming, but for once, the absence of the Federal Reserve chairman means their annual get-together is not likely to spoil the summer vacation of traders on Wall Street.
Fed chief Ben Bernanke declined his annual invitation, breaking a 25-year tradition, and Fed Vice Chair Janet Yellen – a top contender to replace Bernanke in January 2014 – will only be moderating a panel.
WASHINGTON (Reuters) – Barring another financial crisis or slide back into recession, the next head of the Federal Reserve is likely to oversee a gradual normalization of monetary policy.
But that pace, including the first interest rate hike, might be somewhat quicker under former Treasury Secretary Lawrence Summers than under current Fed Vice Chair Janet Yellen, the two top contenders for the job, if their own comments are any guide.
LOUISVILLE, Kentucky (Reuters) – The arrival of the next head of the Federal Reserve should not spell an abrupt change in U.S. monetary policy, a top central banker said on Thursday.
St. Louis Fed President James Bullard also said that if policymakers opt to start scaling back bond buying by a small amount, this would be interpreted by financial markets as a gradual approach to ending the $85 billion-a-month program.
PADUCAH, Kentucky (Reuters) – The U.S. Federal Reserve risks pushing inflation even lower if it tapers bond purchases too aggressively and could take a more cautious approach by initially only scaling back by a small amount, a senior central banker said on Wednesday.
James Bullard, president of the St. Louis Fed, said he had not yet made up his mind if next month’s Fed policy meeting would be too soon to start curbing bond buying, as markets currently expect, but he was aware of the risks of being too aggressive.
PADUCAH, Kentucky (Reuters) – The low U.S. inflation rate is a worrisome sign for the country’s economy, and there is not much evidence it is heading higher, a senior U.S. Federal Reserve official said on Wednesday, adding that price pressures would be under scrutiny as policymakers weigh tapering monthly bond purchases.
“Inflation has been running very low. I have been concerned about low inflation,” James Bullard, president of the St. Louis Fed, told a Rotary Club luncheon in Paducah, Kentucky. “There has not been much indication, so far, that it has been ticking back up toward target.”
, Aug 14 (Reuters) – The low U.S. inflation rate
is a worrisome sign for the country’s economy, and there is not
much evidence it is heading higher, a senior U.S. Federal
Reserve official said on Wednesday, adding that price pressures
would be under scrutiny as policymakers weigh tapering monthly
“Inflation has been running very low. I have been concerned
about low inflation,” James Bullard, president of the St. Louis
Fed, told a Rotary Club luncheon in Paducah, Kentucky. “There
has not been much indication, so far, that it has been ticking
back up toward target.”
WASHINGTON (Reuters) – President Barack Obama said on Friday that Lawrence Summers and Janet Yellen were both highly qualified to be the next chair of the U.S. Federal Reserve, but stressed that there was a “range of outstanding candidates” for this vital job.
“Frankly, I think both Larry Summers and Janet Yellen are highly qualified candidates. There are a couple of other candidates who are highly qualified as well. I’ll make the decision in the fall,” he told a press conference.