WASHINGTON (Reuters) – The Federal Reserve on Wednesday left in place its monthly $85 billion (53.7 billion pounds) bond-buying stimulus plan, arguing the support was needed to lower unemployment even as it indicated a recent stall in U.S. economic growth was likely temporary.

The U.S. central bank predicted that the nation’s job market would continue to improve at a modest pace, and repeated a pledge to keep purchasing securities until the outlook for employment “improves substantially.”

WASHINGTON (Reuters) – The Federal Reserve is expected to keep monetary policy on a steady path when it concludes a two-day meeting on Wednesday, though behind the scenes intensive debate continues over when the controversial bond-buying program should be curtailed.

The policy statement issued by the U.S. central bank at the end of the meeting will likely be only slightly rephrased from its meeting in December to reflect minor changes in the economic outlook, notably reduced risks from financial turmoil in Europe

WASHINGTON, Jan 28 (Reuters) – The U.S. Federal Reserve is
paying close attention to risks linked to its bond buying
program, including the possibility of losses on its massive
portfolio that might touch off a political fire storm and harm
the central bank’s independence.

A Fed staff research paper released last week highlights a
range of scenarios under which bond buying in 2013 inflates the
danger the Fed incurs a loss.

WASHINGTON, Jan 23 (Reuters) – The International Monetary
Fund’s chief economist played down concerns on Wednesday that
easy monetary policies in advanced economies risk sparking a
“currency war”, saying there had not been a major surge of
capital into emerging nations.

“I think this increasing talk of currency wars is very much
overblown,” Olivier Blanchard said at a news conference.
“Countries have to take the right measures to get their own
economies back to health … (and) to the extent we think the
policies are appropriate, then the implications in terms of
exchange rates are also appropriate.”

WASHINGTON (Reuters) – In the summer of 2007, as storm clouds gathered over the world’s financial system, then-New York Federal Reserve President Timothy Geithner allegedly informed the Bank of America and other banks about the possibility the U.S. central bank would lower one of its critical interest rates, according to a senior Fed official.

Jeffrey Lacker, the head of the Richmond Fed, originally raised the allegation during a Fed conference call in August 2007, and he stuck to his 5-year-old claim against the current U.S. treasury secretary in a statement provided to Reuters on Friday.

WASHINGTON/MINNEAPOLIS, Jan 16 (Reuters) – A senior Federal
Reserve official voiced skepticism on Wednesday about the
benefits of additional asset purchases by the U.S. central bank,
while a more dovish policymaker maintained his campaign for
additional policy easing.

Dallas Federal Reserve President Richard Fisher, in remarks
that were mainly about the need to reorganize banks that were
“too big to fail,” said the effectiveness of the Fed’s massive
bond purchases in helping the economy was fading.

WASHINGTON (Reuters) – U.S. authorities should reorganize the country’s largest banks to protect against the risk of institutions that are “too big to fail” and that would saddle ordinary Americans with the cost of a bailout the next time they get in trouble, a senior Federal Reserve official said on Wednesday.

“We recommend that TBTF (too-big-to-fail) financial institutions be restructured into multiple business entities,” Richard Fisher, president of the Dallas Federal Reserve Bank, told an audience at the National Press Club in Washington.

WASHINGTON (Reuters) – U.S. authorities should reorganize the country’s largest banks to protect against the risk of institutions that are “too big to fail” and that would saddle ordinary Americans with the cost of a bailout the next time they get in trouble, a senior Federal Reserve official said on Wednesday.

“We recommend that TBTF (too-big-to-fail) financial institutions be restructured into multiple business entities,” Richard Fisher, president of the Dallas Federal Reserve Bank, told an audience at the National Press Club in Washington.

WASHINGTON, Jan 16 (Reuters) – U.S. authorities should break
up the country’s largest banks to protect against the risk of
institutions that are “too big to fail” and that would saddle
ordinary Americans with the cost of a bailout the next time they
get into trouble, a senior Federal Reserve official said on
Wednesday.

“We recommend that TBTF (too big to fail) financial
institutions be restructured into multiple business entities,”
Richard Fisher, president of the Dallas Federal Reserve Bank,
said in remarks prepared for delivery at the National Press Club
in Washington.

WASHINGTON (Reuters) – Economic activity across the United States expanded at either a moderate or modest pace in recent weeks with consumer spending picking up, the Federal Reserve said on Wednesday, suggesting little change in terms of the recovery’s strength.

The U.S. central bank painted a cautiously positive picture of an economy gathering steam across its 12 districts, although businesses and consumers were wary due to uncertainty over fiscal policy and conditions on the other side of the Atlantic.