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Dec 17, 2014

Despite dissents and high stakes, Yellen delivers clear Fed message

SAN FRANCISCO/NEW YORK, Dec 17 (Reuters) – Federal Reserve
Chair Janet Yellen pulled off a tricky policy transition on
Wednesday, clearly telegraphing that interest-rate hikes are
approaching even while three of her colleagues at the U.S.
central bank objected to her new message.

The Fed has been slammed for sloppy communications in the
past, especially after then-Chairman Ben Bernanke accidentally
set off a global market rout last year.

Dec 16, 2014

Russian turmoil unlikely to slow Fed’s cruise to first rate hike

Dec 16 (Reuters) – The U.S. Federal Reserve stared down a
volatile global economy in October to keep its plans for an
eventual interest rate hike on track, and is likely to do so
again this week amid plunging oil prices and a potential
currency crisis in Russia.

The dramatic fall in Russia’s rouble underscored how the oil
collapse is shifting wealth and economic expectations around the
world, creating a more volatile environment for the U.S. central
bank as it prepares to lift rates that have been near zero for
six years.

Dec 15, 2014

Government seeks to lock in budget goals as election nears

NEW YORK/POOLE, England (Reuters) – Britain’s government promised on Monday to put its ambitious budget targets on a more formal footing, in a largely political move by Conservative Chancellor George Osborne to embarrass the opposition Labour party.

Cutting Britain’s budget deficit has been the main economic goal of the coalition government since it came to power in 2010, and Osborne wants to keep it at the top of the agenda in the run-up to a national election in May 2015.

Dec 15, 2014

Preview – Fed faces big decision over a few choice words

NEW YORK (Reuters) – Federal Reserve officials will decide this week whether to make a critical change to their policy statement that would widen the door for interest rate hikes next year and effectively bet the United States will continue to shine in a gloomy global economy.

In one of the last major wild cards for financial markets in 2014, the U.S. central bank’s policy-setting committee is to issue the statement and fresh economic forecasts on Wednesday at 2 p.m. (1900 GMT), following a two-day meeting. Fed Chair Janet Yellen will then hold a news conference at 2:30 p.m. (1930 GMT).

Dec 15, 2014

Fed faces big decision over a few choice words

NEW YORK (Reuters) – Federal Reserve officials will decide this week whether to make a critical change to their policy statement that would widen the door for interest rate hikes next year and effectively bet the United States will continue to shine in a gloomy global economy.

In one of the last major wild cards for financial markets in 2014, the U.S. central bank’s policy-setting committee is to issue the statement and fresh economic forecasts on Wednesday at 2 p.m., following a two-day meeting. Fed Chair Janet Yellen will then hold a news conference at 2:30 p.m.

Dec 11, 2014

Bank of Canada says housing-market crash not in the cards

NEW YORK (Reuters) – The Bank of Canada does not foresee the sort of sharp rise in joblessness or mortgage rates that would trigger a major housing market correction, Governor Stephen Poloz said on Thursday.

Speaking to reporters in New York a day after the central bank said it estimates the Canadian housing market could be overvalued by 10 to 30 percent, Poloz said the probability of such a big drop in prices is low.

Dec 11, 2014

Poloz: Financial regulation should not stifle innovation

NEW YORK, Dec 11 (Reuters) – Increased regulation stemming
from the global credit crisis need not stifle the financial
innovation needed to help push economic growth forward, the head
of the Bank of Canada said on Thursday.

In prepared remarks for a speech he was giving in New York,
the central bank’s Governor Stephen Poloz urged the financial
industry to find a balance between risk and innovation.

Dec 5, 2014

Fed needs to acknowledge rate hikes are coming: Mester

WASHINGTON (Reuters) – The Federal Reserve needs to adjust its policy statement to acknowledge clear signs of economic strength and, in particular, stop telling the world that interest rates won’t rise for a long while yet, a top Fed official said in an interview on Friday.

Cleveland Fed President Loretta Mester told Reuters she is more optimistic about the economy than most of her colleagues at the U.S. central bank, and would probably be willing to tighten monetary policy sooner. But as the Fed approaches a key policy meeting on Dec. 16-17, she has not decided whether to dissent if the message remains too dovish for her taste.

Dec 1, 2014

Fed welcomes energy drop, shrugs off disinflation threat

NEW YORK (Reuters) – The Federal Reserve is welcoming the sharp drop in global energy prices, with two influential policymakers on Monday cheering the boost it should provide American pocketbooks and shrugging off any pressure on already low inflation.

Soft oil prices in particular, which hit a five-year low on Friday, will only temporarily dampen overall U.S. prices, Fed Vice Chairman Stanley Fischer and New York Fed President William Dudley said at separate events. The pair painted a mostly rosy outlook for the world’s largest economy, suggesting the central bank is not letting energy markets distract it from lifting rates some time next year.

Dec 1, 2014

Fed rate hikes to depend on markets, not just economy -Dudley

NEW YORK, Dec 1 (Reuters) – The Federal Reserve will not
just tighten policy based on how the U.S. economy is faring, but
on how well financial markets respond to the eventual
interest-rate hikes, an influential Fed official said on Monday.

New York Fed President William Dudley said the U.S. central
bank will unleash more aggressive rate rises if financial
markets do not tighten as expected, and vice versa. He flagged
short- and long-term interest rates, equities, credit spread and
availability, and the dollar as areas the Fed will watch.