NEW YORK (Reuters) – A landmark study by Federal Reserve economists found that large U.S. banks enjoy a “too-big-to-fail” advantage in financial markets, confirming the suspicions of many Wall Street critics more than five years after the financial crisis.
The series of research papers, published on Tuesday by the U.S. central bank’s influential New York branch, suggests the biggest and most complex banks benefited even after the financial crisis from lower funding and operating costs compared to smaller firms. The researchers used data through 2009.
SAN FRANCISCO/ NEW YORK (Reuters) – Stanley Fischer, U.S. President Barack Obama’s pick to be the Federal Reserve’s next vice chair, called on Wednesday for financial stability to be an “explicit focus” of Fed policy, alongside the congressionally mandated goals of price stability and maximum employment.
“The Great Recession has driven home the lesson that the Fed has not only to fulfill its dual mandate, but also to contribute its part to the maintenance of the stability of the financial system,” Fischer said in written testimony released on Wednesday for a Senate confirmation hearing set for Thursday. “Almost always, these goals are complementary. But each of them must be an explicit focus of Fed policy.”
SAN FRANCISCO/NEW YORK, March 12 (Reuters) – Janet Yellen
has a message to markets: the Federal Reserve will keep interest
rates low for a while yet and, when it does begin to tighten
monetary policy, it will do so only slowly.
For now, the public has zeroed in on when the U.S. central
bank might finally raise rates after more than five years near
zero. But that tells only half the story: just as important for
American families and businesses is how quickly the Fed will
hike borrowing costs, and how high.
NEW YORK/SAN FRANCISCO (Reuters) – Janet Yellen’s first policy-setting meeting as chair of the U.S. Federal Reserve will focus on how to finesse a rewriting of the central bank’s promise to keep interest rates low without roiling financial markets.
Fed policymakers will probably decide next week to scrap their threshold of a 6.5 percent unemployment rate for considering a rate rise, and instead embrace new language that is less specific about when tighter policy might come.
COLUMBUS, Georgia (Reuters) – The Federal Reserve will continue to trim its monthly asset purchases at a $10 billion pace, an influential Fed official said on Monday as he also detailed how the U.S. central bank might rewrite its plan for keeping interest rates low.
The blunt comments from Charles Evans, president of the Chicago Fed and among the most dovish U.S. policymakers, were perhaps the strongest indication yet that the Fed will keep cutting stimulus at each upcoming meeting, including one next week.
NEW YORK (Reuters) – The Federal Reserve is not about to back off its highly accommodative policy, though investor predictions of a rate rise by midway through next year are reasonable, an influential U.S. central banker said on Friday.
New York Fed President William Dudley outlined some bright spots in the long U.S. recovery from recession, calling U.S. economic prospects “reasonably favorable.”
NEW YORK, March 7 (Reuters) – The U.S. economy’s “reasonably
favorable” prospects are not yet good enough for the Federal
Reserve to stop providing highly accommodative monetary policy,
an influential U.S. central banker said on Friday.
New York Fed President William Dudley outlined some bright
spots in the long U.S. recovery from recession. But he stressed
that the labor market is still hobbled, saying in a speech he
would like to see faster economic growth and more rapid progress
in lowering unemployment and raising inflation.
WASHINGTON (Reuters) – It could be another two months before the U.S. Federal Reserve can determine whether recent weak economic data is truly weather-related or something more permanent, so policymakers should keep trimming their bond-buying stimulus, a top Fed official said on Thursday.
In an interview, Atlanta Fed President Dennis Lockhart said flatly that the central bank should keep reducing its policy accommodation even if the February jobs report on Friday falls short of expectations, making for three straight months of sub-par hiring in the world’s largest economy.
WASHINGTON/NEW YORK/LONDON (Reuters) – The U.S. economic outlook would have to change dramatically for the Federal Reserve to alter the pace at which it is winding down its massive bond-buying program, three top U.S. central bankers said on Thursday.
And one, Atlanta Fed President Dennis Lockhart, told Reuters in an interview that even a third month of below-par U.S. jobs growth would not be enough to warrant such a move.
WASHINGTON (Reuters) – The Federal Reserve should continue to pare its massive bond-buying program even if a key jobs report due out on Friday falls short of expectations, a top Fed official said on Thursday.
“In my mind, unless we really fall off track in the economy pretty dramatically, I think the tapering program should proceed,” Atlanta Federal Reserve Bank President Dennis Lockhart told Reuters in an interview, adding that he has “modest” expectations for the Labor Department’s nonfarm payrolls report.