Jonathan's Feed
Jan 8, 2014

Fed wanted cautious approach to QE3 taper: minutes

By Jonathan Spicer and Ann Saphir

(Reuters) – As the U.S. Federal Reserve’s top officials debated their decision to scale back a massive bond-buying stimulus program last month, they were keen to steer a delicate path.

Minutes of the Fed’s December 17-18 policy meeting, released on Wednesday, showed many members of the policy-setting Federal Open Market Committee wanted to proceed with caution in trimming the asset purchases, and most wanted to stress that further reductions were not on a preset course.

Jan 7, 2014

Fed’s Rosengren gets comfortable with QE cuts, Williams sees steady taper

/PHOENIX, Arizona (Reuters) – Two top Federal Reserve officials said on Tuesday they expected the U.S. central bank to reduce its stimulus at a steady pace, with the lone official to dissent against the Fed’s decision to trim its bond buying saying he was comfortable with the approach.

Boston Fed President Eric Rosengren, who voted against the Fed’s decision last month to reduce its monthly bond buying by $10 billion, told Reuters the central bank should not take any “dramatic steps” to wind down asset purchases.

Jan 7, 2014

Having dissented, Fed’s Rosengren gets comfortable with QE cuts

HARTFORD, Connecticut (Reuters) – The lone Federal Reserve official to dissent against the U.S. central bank’s decision to cut stimulus said on Tuesday he is nonetheless comfortable with the current approach of reducing bond-buying by $10-billion increments at each policy meeting.

In an interview, Boston Fed President Eric Rosengren warned against any “dramatic steps” to wind down the asset purchases and gave what might be the most detailed outline to date of what economic conditions might cause the U.S. central bank to veer from a uniform withdrawal of accommodation.

Jan 4, 2014

Top Fed officials zero in on next policy steps

PHILADELPHIA (Reuters) – The U.S. Federal Reserve, having just reduced its bond-buying program, now appears deep in debate over the best way to unwind its extraordinary stimulus in the months and years ahead.

Wrapping up a big economics conference in snow-swept Philadelphia, a handful of top U.S. central bankers were sometimes at odds over the ideal pace at which to wind down the purchases and, eventually, start to shrink the Fed’s balance sheet and raise interest rates.

Jan 3, 2014

Fed no less committed to stimulus after cut to QE -Bernanke

PHILADELPHIA, Jan 3 (Reuters) – The U.S. Federal Reserve is
no less committed to highly accommodative policy now that it has
trimmed its bond-buying stimulus, Ben Bernanke said on Friday in
what could be his last speech as Fed chairman.

Bernanke, who steps down as head of the U.S. central bank at
month’s end, gave an upbeat assessment of the U.S. economy in
coming quarters. But he tempered the positive signs in the
housing sector, financial markets and fiscal policies by
repeating that the overall recovery “clearly remains incomplete”
in the United States.

Jan 3, 2014

After trim to QE, Fed no less committed to stimulus: Bernanke

PHILADELPHIA (Reuters) – The Federal Reserve is no less committed to highly accommodative policy now that is has trimmed its bond-buying stimulus, Ben Bernanke said on Friday in what could be his last speech as Fed chairman.

Bernanke, who steps down as head of the U.S. central bank at month’s end, gave an upbeat assessment of the U.S. economy in coming quarters. But he tempered the good news in housing, finance and fiscal policies by repeating that the overall recovery “clearly remains incomplete” in the United States.

Dec 20, 2013

Bernanke’s 11th hour pivot smoothes path for Yellen at Fed

SAN FRANCISCO/NEW YORK (Reuters) – By ensuring the Federal Reserve begins trimming its massive bond-buying stimulus before a more hawkish contingent of voters comes on board next year, Fed Chairman Ben Bernanke has greased the skids politically for his successor, Janet Yellen.

The U.S. central bank’s decision on Wednesday to begin to cut the pace of its monthly purchases by $10 billion, to $75 billion, gave the Fed’s bond-buying skeptics what they wanted: a roadmap out of a policy they felt risked fueling future inflation.

Dec 19, 2013

Fed cuts bond buying in first step away from historic stimulus

WASHINGTON (Reuters) – The Federal Reserve on Wednesday embarked on the risky task of winding down the era of easy money, saying the U.S. economy was finally strong enough for it to start scaling down its massive bond-buying stimulus.

The central bank modestly trimmed the pace of its monthly asset purchases, by $10 billion to $75 billion, and sought to temper the long-awaited move by suggesting its key interest rate would stay at rock bottom even longer than previously promised.

Dec 18, 2013

Fed cuts bond-buying but stresses easy policy

WASHINGTON, Dec 18 (Reuters) – The U.S. Federal Reserve
announced plans to trim its aggressive bond-buying program on
Wednesday but sought to temper the long-awaited move by
suggesting its key interest rate would stay lower for even
longer than previously promised.

In what amounts to the beginning of the end of its
unprecedented support for the U.S. economy, the central bank
said it would reduce its monthly asset purchases by $10 billion,
bringing them down to $75 billion. It trimmed equally from
mortgage and Treasury bonds.

Dec 18, 2013

Fed faces tough call on bond buying as economy strengthens

WASHINGTON, Dec 18 (Reuters) – The Federal Reserve will
decide on Wednesday whether the U.S. economy is finally
resilient enough to withstand less policy support, or whether it
is prudent to wait a bit longer.

With the world’s financial markets on edge, the U.S. central
bank wraps up a two-day meeting with a highly anticipated policy
announcement at 2 p.m. (1900 GMT), followed by Ben Bernanke’s
last news conference as Fed chairman a half hour later.