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Nov 21, 2013

Fed’s Bullard: keep buying bonds as U.S. inflation muted

ROGERS, Arkansas (Reuters) – Accommodative bond-buying must continue for now despite possible inflation risks in part because there are no signs of price rises so far, St. Louis Federal Reserve President James Bullard said on Thursday.

Bullard, a voter on monetary policy this year, added he expects the U.S. central bank’s balance sheet to “eventually” return to a pre-financial-crisis level of around $800 billion, though “it may take quite a while.”

Nov 20, 2013

Fed’s Dudley says job growth not as strong as desired

NEW YORK, Nov 20 (Reuters) – Recent growth in the U.S. job
market has been “ok” but not as strong as the Federal Reserve
would like to see, New York Fed President William Dudley said on
Wednesday.

Dudley, an influential official at the U.S. central bank,
said workforce productivity will be a focus for the Fed and also
a “wild card” in the prospects for overall gross domestic
product growth. He predicted GDP growth would pick up to a pace
of between 2.5 and 3 percent next year, and yet stronger in
2015.

Nov 18, 2013

Fed’s Dudley ‘hopeful’ on recovery; Plosser calls for capping QE

NEW YORK (Reuters) – Top Federal Reserve officials from opposite sides of the policy spectrum pointed to improvement in the U.S. economy on Monday, adding more weight to the notion that the central bank is getting close to reducing the pace of its monthly asset purchases.

William Dudley, president of the Federal Reserve Bank of New York and one of the staunchest supporters of the Fed’s easy-money policies, cited labor market improvements and stronger-than-expected growth in the third quarter as signs of optimism for the U.S. economic recovery.

Nov 18, 2013

Fed’s Dudley, a staunch dove, turns upbeat on U.S. economy

NEW YORK (Reuters) – William Dudley, an influential U.S. central banker who has been one of the staunchest supporters of easy-money policies, on Monday said he was “getting more hopeful” on prospects for the beleaguered U.S. economic recovery.

The president of the Federal Reserve Bank of New York pointed to an improvement in the labor market last month and better-than-expected gross domestic product (GDP) growth in the third quarter, and he predicted a rise in economic growth next year and in 2015.

Nov 15, 2013

Yellen signals new emphasis on Fed policing role

NEW YORK (Reuters) – Move over inflation and job growth.

The next Federal Reserve chief appears set to direct the central bank’s might at ensuring financial stability and stern banking oversight with the same vigor it currently applies to its traditional mandates of fostering price stability and maximum employment.

The question of monitoring and stabilizing Wall Street was a dominant issue during Fed chair-designate Janet Yellen’s confirmation hearing before a Senate committee on Thursday. Yellen, widely expected to win Senate backing for the job, said financial regulation should be on par with monetary policymaking on the Fed’s list of priorities.

Nov 15, 2013

Yellen says stronger job growth a Fed imperative

WASHINGTON (Reuters) – Fed Vice Chair Janet Yellen on Thursday robustly defended the Federal Reserve’s bold steps to spur economic growth, calling efforts to boost hiring an “imperative” at a hearing into her nomination to become the first woman to lead the U.S. central bank.

Answering questions before the Senate Banking Committee, Yellen made plain she would press forward with the Fed’s ultra-easy monetary policy until officials were confident a durable economic recovery was in place that could sustain job creation.

Nov 14, 2013

Yellen says imperative to promote very strong recovery

WASHINGTON (Reuters) – Janet Yellen on Thursday robustly defended the Federal Reserve’s bold steps to spur economic growth, calling efforts to boost hiring an “imperative” at a hearing into her nomination to become the first woman to lead the U.S. central bank.

Answering questions before the Senate Banking Committee, Yellen made plain she would press forward with the Fed’s ultra-easy monetary policy until officials were confident a durable economic recovery was in place that could sustain job creation.

Nov 13, 2013

Analysis: Time for Fed to accept that U.S. growth not what it used to be?

NEW YORK/SAN FRANCISCO (Reuters) – Year after year Federal Reserve policymakers have clung to a belief that the U.S. economy will soon regain its pre-recession stride. And year after year they have been wrong.

Now a growing number of economists and at least one top Fed official think Americans should lower their expectations.

Nov 13, 2013

Time for Fed to accept that U.S. growth not what it used to be?

NEW YORK/SAN FRANCISCO (Reuters) – Year after year Federal Reserve policymakers have clung to a belief that the U.S. economy will soon regain its pre-recession stride. And year after year they have been wrong.

Now a growing number of economists and at least one top Fed official think Americans should lower their expectations.

Nov 12, 2013

Two Fed officials say aggressive policy action still needed

PAUL, Minnesota (Reuters) – The Federal Reserve should keep monetary policy ultra-easy given the economy’s tepid growth and an uncertain outlook for jobs growth, two senior officials said on Tuesday, reinforcing views that the U.S. central bank will not taper bond buying before next year.

At the same time, last month’s government shutdown may undermine the reliability of economic data through December, said Dennis Lockhart, president of the Federal Reserve Bank of Atlanta. That could provide another reason not to expect policy action when the Fed holds its next policy meeting, on December 17-18, though Lockhart would not rule it out.