Correspondent, Chicago
Ann's Feed
Jun 24, 2015

Analysis – U.S. Fed says it is data dependent, but whose data?

WASHINGTON/SAN FRANCISCO (Reuters) – The Federal Reserve says it will depend on straightforward data analysis in deciding when to raise U.S. interest rates.

But whose data will it depend on?

The large, half a percentage point revision to estimated U.S. first quarter gross domestic product issued on Wednesday by the Bureau of Economic Analysis nearly erased a contraction in output that had unnerved policymakers.

Jun 24, 2015

Fed says it is data dependent, but whose data?

WASHINGTON/SAN FRANCISCO (Reuters) – The Federal Reserve says it will depend on straightforward data analysis in deciding when to raise U.S. interest rates.

But whose data will it depend on?

The large, half a percentage point revision to estimated U.S. first quarter gross domestic product issued on Wednesday by the Bureau of Economic Analysis nearly erased a contraction in output that had unnerved policymakers.

Jun 19, 2015

Fed’s Williams sees two interest-rate hikes this year

SAN FRANCISCO, June 19 (Reuters) – The Federal Reserve is on
track to raise U.S. interest rates twice this year as long as
inflation begins to show signs of rising back to 2 percent and
the unemployment rate continues to fall, a top Fed official said
on Friday.

“Definitely my own forecast would be having us raise rates
two times this year, but that would depend on the data,” San
Francisco Fed President John Williams told reporters at the
bank’s headquarters.

Jun 18, 2015

Fed may hike just once in 2015 as Yellen strikes less certain tone

SAN FRANCISCO/WASHINGTON (Reuters) – The question of how quickly the Federal Reserve should raise rates is dividing normally like-minded policymakers at the U.S. central bank, pitting those who favor two hikes this year against a growing number of those who want to stop at just one.

That shift, and the very real possibility that Fed Chair Janet Yellen may be one of the five who now prefer a single rate hike in 2015 rather than among an equal number who prefer two, is bolstering the view that the Fed may not deliver until late in the year.

Jun 17, 2015

Preview – Fed eyes mixed bag of data as new rate “regime” nears

WASHINGTON (Reuters) – The U.S. Federal Reserve is meeting with the possibility of an interest rate hike squarely on the table, but with a different issue center stage: Is the worst of 2015 over?

After watching the U.S. economy contract in the first quarter, central bank officials have signaled they won’t raise rates this week. But they will have to judge whether healthier recent jobs, wage and consumer spending data have put that earlier swoon safely in the past, clearing the way for a rate hike – or hikes – later this year.

Jun 17, 2015

Fed eyes mixed bag of data as new rate ‘regime’ nears

WASHINGTON (Reuters) – The U.S. Federal Reserve is meeting with the possibility of an interest rate hike squarely on the table, but with a different issue center stage: Is the worst of 2015 over?

After watching the U.S. economy contract in the first quarter, central bank officials have signaled they won’t raise rates this week. But they will have to judge whether healthier recent jobs, wage and consumer spending data have put that earlier swoon safely in the past, clearing the way for a rate hike – or hikes – later this year.

Jun 10, 2015

Dallas Fed seeks chief with PhD as search enters 8th month

SAN FRANCISCO (Reuters) – The Federal Reserve Bank of Dallas is seeking a chief with a “direct, open and honest personality” and the scholarly chops to make his mark as U.S. central bankers near the critical decision of when and how fast to raise interest rates.

The ideal candidate, according to a job description provided to Reuters, will be “objective and pragmatic,” have a “high emotional IQ and (be) capable of asserting a point of view and engaging intellectually with other colleagues to ensure the best decisions are reached.”

Jun 8, 2015

Minneapolis Fed seeks ‘thought leader’ as dovish chief leaves

By Ann Saphir

(Reuters) – The Federal Reserve Bank of Minneapolis on Monday launched a search for a “strategic thought leader” to replace current president Narayana Kocherlakota, who is returning to academia after years of failing to persuade colleagues in the U.S. central bank to support more accommodative monetary policy.

Kocherlakota, a university professor before becoming Minneapolis Fed president in 2009, will start work as a professor of economics at the University of Rochester, in New York state, on Jan. 1.

Jun 8, 2015

Fed ‘dove’ Kocherlakota returning to academia

By Ann Saphir

(Reuters) – Minneapolis Federal Reserve Bank President Narayana Kocherlakota said on Monday he was returning to academia, after years of failing to persuade colleagues in the U.S. central bank to support more accommodative monetary policy.

Kocherlakota said in a statement he had accepted a job as a professor of economics at the University of Rochester, in New York state, starting Jan. 1. He had said he would leave by February 2016. Before taking his job in 2009, he had been a professor at the University of Minnesota.

Jun 5, 2015

Fed seen raising rates in October as job market firms

By Ann Saphir

(Reuters) – After an unexpected surge in U.S. job gains in May, traders are now betting the Federal Reserve will start raising interest rates as soon as October.

Federal fund futures contracts show that traders see a 52 percent chance that the first Fed rate hike will come at the Fed’s second-to-last meeting of the year, based on CME FedWatch, which tracks rate hike expectations using its Fed funds futures contracts.