Financial Regulatory Forum

   By Mark Felsenthal
   WASHINGTON, March 17 (Reuters) – Top U.S. central bankers present and past on Wednesday joined forces against a plan to strip the Fed of its oversight of smaller banks, saying the knowledge it gains from that role is vital to monetary policy. (more…)

By Mark Felsenthal

WASHINGTON, March 1 (Reuters) – Federal Reserve Vice Chairman Donald Kohn, a 40-year veteran of the U.S. central bank, will step down in late June, giving President Barack Obama a chance to reshape the institution.

In a letter to Obama released on Monday, Kohn, who has served as the Fed’s No. 2 since June 2006, said he will depart when his current term as vice chairman expires on June 23.

“The Federal Reserve and the country owe a tremendous debt of gratitude to Don Kohn for his invaluable contributions over 40 years of public service,” Fed Chairman Ben Bernanke said in a statement.

Eyes on the punch bowl

By Mark Felsenthal

WASHINGTON, Feb 10 (Reuters) – Federal Reserve Chairman Ben Bernanke on Wednesday detailed how the U.S. central bank will begin to wean the economy off its extraordinary stimulus, even as he stressed it was not yet time to do so.

Bernanke said the Fed would likely begin tightening monetary policy by removing cash from the financial system before it turns to raise benchmark short-term interest rates.

In his most comprehensive description to date of how the Fed aims to dismantle its extensive emergency economic supports, he also said the central bank could soon raise the discount rate it charges banks for emergency loans, but stressed that would not be akin to a tightening in monetary policy.

By Mark Felsenthal and Thomas Ferraro

WASHINGTON, Jan 28 (Reuters) – The U.S. Senate on Thursday approved Ben Bernanke’s nomination to a second four-year term running the Federal Reserve, the world’s most powerful central bank, despite deep misgivings over his perceived policy missteps.

The Senate voted 70-30 to confirm Bernanke, after clearing a procedural hurdle with the support of 77 senators.

Bernanke won the Senate’s needed backing despite the stiffest opposition to any nominee for Fed chairman in the nearly 32 years the Senate has voted on the position.

By Thomas Ferraro and Pedro da Costa

WASHINGTON, Jan 22 (Reuters) – Ben Bernanke’s nomination for a second term as U.S. Federal Reserve chairman, once seen a sure thing, appeared increasingly under threat on Friday after two Senate Democrats said they would vote against it.

“I believe there will be the votes to confirm him, but it’s going to be very close,” a senior Democratic leadership aide said.

With the U.S. job market in disarray, voters angry at Wall Street firms and members of Congress worried about their re-election in November, the Fed and its chairman have become targets for discontent.

WASHINGTON, Jan 19 (Reuters) – U.S. Federal Reserve chairman Ben Bernanke on Tuesday asked a government auditor to review the Fed’s actions in bailing out American International Group Inc in 2008, as controversy persisted over the central bank’s role in extending billions in credit to the insurer.

Bernanke, in a letter to Acting Comptroller General Gene Dodaro, said the Fed would make available to the Government Accountability Office all documents and personnel necessary to conduct the review.

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SANTA BARBARA, Calif., Oct 19 (Reuters) – Federal Reserve Chairman Ben Bernanke on Monday said that the performance of the dollar and the U.S. economy will depend on the government’s success in controlling the country’s budget deficit.

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By Kevin Drawbaugh
WASHINGTON, Oct 1 (Reuters) – The Obama administration’s plan to form a “systemic risk” regulator for the economy looked more likely to win congressional approval after lawmakers noted a change in tone by the Federal Reserve on Thursday.

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   By Kevin Drawbaugh
   WASHINGTON, Sept 30 (Reuters) – The head of the Federal Reserve will step back from one of the most controversial parts of the Obama administration’s drive for financial regulation reform, saying sweeping new oversight powers proposed for the U.S. central bank should be shared with other regulators. (more…)

    WASHINGTON, Sept 30 (Reuters) – The following is the full text of remarks due to be delivered to the U.S. House Financial Services Committee on Thursday, Oct. 1 by Federal Reserve chairman, Ben Bernanke: (more…)