Jonathan's Feed
Jun 10, 2014

Canada ‘disappointed’ Keystone XL still in limbo -Oliver

NEW YORK, June 10 (Reuters) – Canada is “disappointed” that
the proposed Keystone XL pipeline to the United States has not
yet received approval from the White House, the country’s
finance minister, Joe Oliver, said on Tuesday.

“We are of course anxious for this project to proceed and we
are very disappointed that it hasn’t yet achieved the (U.S.)
presidential approval,” Oliver told reporters before attending
an energy conference hosted by U.S. bank Goldman Sachs.

May 30, 2014

Fed’s Mester stresses stable prices, inflation research

CLEVELAND (Reuters) – The Federal Reserve cannot achieve full U.S. employment over the longer term without stabilizing prices, incoming Fed policymaker Loretta Mester said on Friday, stressing that clear communication will be key as the central bank returns to a more normal policy stance.

Mester, who succeeds Sandra Pianalto as president of the Cleveland Fed on Sunday, gave a speech that was careful not to reveal her stance on monetary policy or the economic outlook. Instead she challenged Fed researchers to help the central bank better understand inflation.

May 30, 2014

US Fed seen sticking to range when hiking interest rates

NEW YORK (Reuters) – Don’t count on the U.S. Federal Reserve to go back to a numerical bulls-eye to aim at when it finally decides to raise interest rates. A target range for the federal funds rate may well be here to stay, at least for the foreseeable future.

While the liftoff for rates is likely a year or more away, Fed officials already have devoted a lot of thought to the mechanics of how they pull off that move.

May 30, 2014

Don’t assume newest Fed policymaker is a look-alike hawk

CLEVELAND, May 30 (Reuters) – The newest Federal Reserve
policymaker is probably not as hawkish as her background
suggests, and Loretta Mester’s expertise in financial markets
and inflation could make a splash as the U.S. central bank
reverses its most accommodative policy experiment ever.

Mester, a Fed veteran of nearly three decades, becomes
president of the Federal Reserve Bank of Cleveland on Sunday
after stepping down as head of research at the central bank’s
Philadelphia branch.

May 21, 2014

Fed’s Kocherlakota floats overshooting U.S. inflation in future

MINNEAPOLIS (Reuters) – U.S. inflation may not climb back to 2 percent until 2018, so the Federal Reserve should consider overshooting that target for a few years afterward to make up for the current period of low prices, a top Fed policymaker said on Wednesday.

Narayana Kocherlakota, president of the Minneapolis Fed, floated the idea of “price level targeting” but did not explicitly endorse it, saying in a speech the idea deserves “serious discussion” at the U.S. central bank.

May 16, 2014

Insight – At big-ticket dinners, a blunt Bernanke sounds theme of low rates

NEW YORK/BOSTON (Reuters) – In a series of quarter-million-dollar dinners with wealthy private investors, Ben Bernanke has been clearer than he ever was as chairman of the Federal Reserve on his expectations that easy-money policies and below-normal interest rates are here for a long time to come, according to some of those in attendance.

Bernanke, who retired from the U.S. central bank in January, has predicted the Fed will only very slowly move to raise rates, and probably do so later than many forecast because the labour market still has a lot more room to recover from the financial crisis and recession.

May 16, 2014

At big-ticket dinners, a blunt Bernanke sounds theme of low rates

NEW YORK/BOSTON (Reuters) – In a series of quarter-million-dollar dinners with wealthy private investors, Ben Bernanke has been clearer than he ever was as chairman of the Federal Reserve on his expectations that easy-money policies and below-normal interest rates are here for a long time to come, according to some of those in attendance.

Bernanke, who retired from the U.S. central bank in January, has predicted the Fed will only very slowly move to raise rates, and probably do so later than many forecast because the labor market still has a lot more room to recover from the financial crisis and recession.

May 9, 2014

Fed could ditch flawed ‘dots’ rates forecasts: Fisher

NEW ORLEANS (Reuters) – There are flaws in the published forecasts of individual Federal Reserve policymakers and the U.S. central bank should consider ditching them altogether, a top Fed policymaker said on Friday.

Zeroing in on the so-called “dot chart” the central bank published quarterly, which show policymakers’ expected path of interest rates, Dallas Fed President Richard Fisher said they are largely the result of guesswork. Also problematic, he said, they reflect the views of policymakers who are coming and going.

May 8, 2014

Could take 5-8 years to shrink Fed portfolio: Yellen

NEW YORK/WASHINGTON (Reuters) – The U.S. Federal Reserve is in no rush to decide the appropriate size of its balance sheet, but if it ultimately shrinks it to a pre-crisis size, the process could take the better part of a decade, Fed Chair Janet Yellen said on Thursday.

Yellen, in testimony to a Senate panel, said no decision had yet been made on the central bank’s portfolio of assets, which has swollen to $4.5 trillion from about $800 billion in 2007.

Apr 27, 2014

Fed, with bond taper on autopilot, free to tackle big questions

SAN FRANCISCO/NEW YORK (Reuters) – Federal Reserve policymakers this week are set to continue paring their massive bond-buying stimulus, but below the smooth surface of a likely unanimous vote lies a deeply divided Fed struggling to lay the groundwork for more difficult decisions ahead.

Fed Chair Janet Yellen hinted at the U.S. central bank’s broad agenda a couple weeks ago when she laid out three “big” issues officials need to track: the level of slack in the labor market, whether inflation is rising back toward the Fed’s 2 percent goal, and the factors that could derail the economic recovery.