Jonathan's Feed
Sep 23, 2013

Fed to push hard with stimulus now; can step back later this year -Dudley

NEW YORK/SAN ANTONIO, Sept 23 (Reuters) – The Federal
Reserve must for now continue to push hard against threats to
the U.S. recovery, but should still be able to reduce its
support for the economy later this year, an influential central
bank policymaker said on Monday.

In a strong defense of the Fed’s shock decision last week to
keep buying bonds unabated, New York Fed President William
Dudley warned in a speech that fiscal uncertainties “loom very
large” as Congress prepares to hash out a deal to avoid a
government shutdown and raise the nation’s debt ceiling.

Sep 23, 2013

Fed to push hard now; can step back later this year -Dudley

NEW YORK, Sept 23 (Reuters) – For now the Federal Reserve
must push hard against threats to the U.S. recovery even though
it still plans to reduce its support for the economy later this
year, an influential central bank policymaker said on Monday.

In a strong defense of the Fed’s shock decision last week to
keep buying bonds unabated, New York Fed President William
Dudley warned in a speech that fiscal uncertainties “loom very
large” as Congress prepares to hash out a deal to avoid a
government shutdown and raise the nation’s debt ceiling.

Sep 23, 2013

Fed needs to push hard against U.S. headwinds: Dudley

NEW YORK (Reuters) – The Federal Reserve still needs to push hard against threats to the U.S. economic recovery and fiscal uncertainties in particular “loom very large right now,” an influential Fed policymaker said on Monday.

New York Fed President William Dudley defended the U.S. central bank’s shock decision last week not to trim its aggressive bond-buying, arguing in a speech that any changes to the quantitative easing program (QE) must be based on the most recent measures of economic health.

Sep 20, 2013

Fed officials criticize, explain taper delay

NEW YORK (Reuters) – An outspoken Federal Reserve hawk warned on Friday that the U.S. central bank had harmed its credibility by delaying a highly anticipated reduction in monetary stimulus this week, but another official argued it had been the right thing to do.

Policymakers hit the speech circuit as financial markets continued to puzzle over Wednesday’s shock decision by the Fed not to scale back its massive bond buying program, after allowing the impression over the summer that it would do so.

Sep 20, 2013

U.S. Fed’s George sharply criticizes inaction on QE

NEW YORK (Reuters) – A hawkish Federal Reserve policymaker on Friday sharply criticized her colleagues’ decision this week not to reduce the Fed’s bond-buying program, warning that the U.S. central bank’s credibility is now at risk given how convinced were financial markets that policy would be adjusted.

Kansas City Fed President Esther George, the lone dissenter on Wednesday’s policy decision, said she was “disappointed.” She noted the “costly steps taken to prepare markets” in recent months for a policy change, and warned that the Fed has sowed confusion about its intentions.

Sep 19, 2013

By standing pat, Fed’s Bernanke leaves successor with no map

NEW YORK/SAN FRANCISCO, Sept 19 (Reuters) – Federal Reserve
Chairman Ben Bernanke’s shock announcement on Wednesday that the
U.S. central bank was not ready to pare back its stimulus
program could make it more difficult for his successor to
navigate the Fed’s way out of its extraordinarily aggressive
policy.

Economists had expected Bernanke to follow through with the
rough chart he had drafted in June: trimming the Fed’s
bond-buying program before year-end and ending it by mid-2014,
when he expected the unemployment rate to be around 7 percent.

Sep 12, 2013

U.S. central bankers criticize SEC’s money-market proposals

Sept 12 (Reuters) – Heads of the 12 U.S. Federal Reserve
regional banks on Thursday strongly criticized a component of a
U.S. Securities and Exchange Commission proposal aimed at
preventing runs on money-market funds, saying it does little to
change current rules.

The measure, part of a series of proposed SEC changes to
reduce risks in the $2.5 trillion money-market industry, would
let funds ban withdrawals or charge fees for them in times of
stress like the 2008 credit crisis.

Sep 12, 2013

Central bankers, brokers snap at SEC’s money-market proposals

NEW YORK (Reuters) – Heads of the 12 U.S. Federal Reserve regional banks on Thursday strongly criticized a component of a U.S. Securities and Exchange Commission proposal aimed at preventing runs on money-market funds, saying it did little to change current rules.

The measure, part of a series of proposed SEC changes to reduce risks in the $2.5 trillion money-market industry, would let funds ban withdrawals and charge fees for them in times of stress like the 2008 credit crisis.

Sep 10, 2013

U.S. Fed expected to forge ahead with modest cut to QE3

NEW YORK (Reuters) – The beginning of the end of the Federal Reserve’s determined support for the U.S. economy is expected to come next week when top officials gather for one of the most highly anticipated meetings since the end of the Great Recession.

Despite a lackluster August jobs report, the U.S. central bank will probably reduce its bond-buying program from the current $85 billion per month, given the progress the economy has made over the last year.

Sep 10, 2013
via MacroScope

New film takes a whack at warped Fed policies in the land of never-ending bubbles

Photo

“Money for Nothing: Inside the Federal Reserve” is a slick, thoughtful and alternately infuriating-and-funny documentary that premiered in New York’s Florence Gould Hall last night. It gives the U.S. central bank a pretty thorough lashing, especially Alan Greenspan. The former Fed Chairman is strung up like a piƱata and smacked around as the culmination of long-misguided U.S. monetary policy that, crisis after crisis, lacks the creativity and courage to remove the proverbial punch bowl when the time is right.

The film, by writer and director Jim Bruce, is narrated by Liev Schreiber but almost doesn’t need him given the series of interviews that drive an account of the Fed over the 100 years of its existence. Paul Volcker, Alice Rivlin, Charles Plosser, Jeffrey Lacker, Allan Meltzer, Raghuram Rajan, Alan Blinder and Jim Grant are among those who weigh in. Oh and Janet Yellen, but not Lawrence Summers.