Jonathan's Feed
Feb 19, 2014

Fed officials see more QE cuts, changes to low-rate vow

LOUIS, Feb 19 (Reuters) – Three Federal Reserve
officials on Wednesday said they believe the U.S. economy is
gaining traction despite a recent slowdown from cold weather,
allowing the central bank to stick to its plan to wind down its
massive bond-buying stimulus this year.

The comments, from the heads of the Federal Reserve banks of
St. Louis, San Francisco and Atlanta, freshen the message in the
minutes of the Fed’s most recent policymaking meeting, also
released Wednesday, which showed many thought only a big change
in outlook could scupper further measured reductions in
purchases.

Feb 19, 2014

Fed officials stress predictable cuts to stimulus: minutes

By Jonathan Spicer

(Reuters) – Several Federal Reserve policymakers wanted to drive home the idea that their asset-purchase program would be trimmed in predictable, $10-billion steps unless there is a big economic surprise this year, according to minutes of their last meeting.

Minutes of the Fed’s January 28-29 policy meeting, released on Wednesday, showed the officials were nearing a decision on how to adjust a promise to keep interest rates low for a while to come, including the possibility of incorporating financial stability concerns in that promise.

Feb 18, 2014
Feb 18, 2014
Feb 14, 2014

A dozen roses? So conventional. Try dozens of #FedValentines

SAN FRANCISCO/NEW YORK (Reuters) – It was no honeymoon for Janet Yellen at a marathon congressional hearing earlier this week, but the love was back on Friday with a flutter of #FedValentines on Twitter for the Federal Reserve and its first woman chief.

The tradition of wonky love limericks exploded on to the social media site in 2012 with academics, economists and journalists waxing poetic on quantitative easing, the zero lower bound and too-big-to-fail banks. It cooled in 2013 – perhaps on twitterati ennui with former Fed Chairman Bernanke and his open-ended, unconventional commitment to stimulating the economy – but it returned this Valentines Day with dozens of tweets in the morning alone.

Feb 13, 2014

Philadelphia Fed economist tapped to run Cleveland Fed

By Jonathan Spicer

(Reuters) – The Federal Reserve Bank of Cleveland on Thursday named Loretta Mester, a veteran of the U.S. central bank and the top policy adviser at its hawkish Philadelphia branch, as its president, succeeding Sandra Pianalto.

Mester, the Philadelphia Fed’s respected director of research, will take the reins in Cleveland on June 1. The 55-year-old will immediately have a vote on U.S. monetary policy, under the Fed’s rotating system, including at a June 17-18 policy-setting meeting.

Feb 13, 2014

New York Fed threatens new rules to stop repo-market fire sales

NEW YORK (Reuters) – The banks and big funds in a key short-term funding market have not even begun to address the risk of destabilizing “fire sales,” and the lack of action may force regulators to step in with new rules, the Federal Reserve Bank of New York warned on Thursday.

The market for so-called tri-party repurchases, or repos, is at particular risk of seizing up entirely, as it did in the 2008 financial crisis, if a big player defaults, the New York Fed said. It added investors are “highly vulnerable” to liquidity pressures and credit losses that could force them to dump collateral in a fire sale.

Feb 12, 2014

Jobless drop will force Fed to more ‘traditional’ policy -Bullard

NEW YORK, Feb 12 (Reuters) – The Federal Reserve will
probably have to return to more “traditional” policy-making now
that the U.S. jobless rate has fallen to 6.6 percent, so close
to the U.S. central bank’s existing 6.5-percent threshold for
considering an interest-rate rise, a top Fed official said on
Wednesday.

St. Louis Fed President James Bullard, speaking on a panel
at the New York Stock Exchange, said the Fed will have to adjust
its so-called forward guidance on monetary policy. He expects
the Fed to drop its economic thresholds and have to “make more
qualitative judgments” on when to tighten policy.

Feb 12, 2014

Yellen stays the course, says Fed to keep trimming stimulus

WASHINGTON (Reuters) – Janet Yellen, fresh from taking the helm of the Federal Reserve, made it clear on Tuesday she would not make any abrupt changes to U.S. monetary policy, saying the central bank was on track to keep reducing its stimulus even though the labor market recovery was far from complete.

In her first public comments since becoming Fed chief earlier this month, Yellen had testy exchanges with some Republican lawmakers over Wall Street regulation and central bank independence. But she managed to keep financial markets calm by emphasizing continuity with the policy approach taken by her predecessor, Ben Bernanke.

Feb 11, 2014

Yellen says Fed on track to keep trimming stimulus

WASHINGTON, Feb 11 (Reuters) – Federal Reserve Chair Janet
Yellen said on Tuesday the U.S. central bank was on track to
keep reducing its policy stimulus, even as she acknowledged the
labor market recovery was “far from complete.”

In her first public comments as Fed chief, Yellen said the
central bank would need to keep its eye on a broad range of
labor market indicators, not just the unemployment rate, as it
continued to assess the health of the jobs market.