BOSTON, April 13 (Reuters) – The U.S. Federal Reserve and
the Bank of England have set monetary policy in similar ways
regardless of their contrasting official mandates, top British
and U.S. policymakers argued at a forum on how central banks can
David Miles, an external member of the Bank of England’s
Monetary Policy Committee, on Saturday threw his weight behind
an argument made a day earlier by Boston Fed President Eric
BOSTON (Reuters) – A top Federal Reserve official on Friday defended the U.S. central bank’s dual mandate of full employment and price stability, and pointed to economic trends that suggest an even more accommodative policy stance might have been needed since the Great Recession.
Boston Fed President Eric Rosengren, redoubling his support of the currently very easy U.S. monetary policies, argued the Fed’s inflation record over the past 15-20 years has been as good as or better than central banks in Europe that have only a single price-stability mandate.
(Reuters) – Federal Reserve officials appeared on course to end their extraordinary bond buying stimulus by year end at a meeting last month, suggesting a weak March jobs report may have taken them by surprise.
Meeting on March 19-20, before release of the jobs data, Fed officials took an intellectual deep dive into the risks and benefits of their extraordinary policy stimulus, minutes of the meeting released on Wednesday showed.
Paul Volcker’s inflation-fighting era as chairman of the Federal Reserve is quite the opposite of today’s U.S. central bank, which is battling to kick start growth and even stave off deflation with trillions in bond purchases. And it is polar opposite of where the Bank of Japan finds itself today, doubling down on easing to lift inflation expectations after two decades of Japanese stagnation. After all, Volcker ratcheted up interest rates in 1979 and the early 1980s to tame the inflation that had been choking the United States.
So it may come as no real surprise that, talking to students and faculty at New York University on Monday, he had a few concerns about where the world’s ultra accommodative central banks are headed.
April 5 (Reuters) – The Federal Reserve should continue
buying bonds through this year due to a “scarring” of the U.S.
labor market, and even more aggressive policies may be warranted
if unemployment remains persistently high, a top Fed official
said on Friday.
As Boston Fed President Eric Rosengren took to the podium to
give a speech on the pain caused by high rates of unemployment,
fresh data showed employers added a very disappointing 88,000
jobs last month, the slowest hiring pace since last summer.