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Sep 25, 2013

Fed will be able to smoothly wind down aggressive policy-Dudley

NEW YORK, Sept 25 (Reuters) – Winding down the Federal
Reserve’s unprecedented policy accommodation is feasible even
with the U.S. central bank’s swollen balance sheet, though there
are bound to be unforeseen challenges when the time comes, a top
Fed official said on Wednesday.

New York Fed President William Dudley, whose branch of the
central bank handles its massive bond-buying program, said in a
speech that there “will undoubtedly be communications and
operational challenges and unexpected consequences” when the Fed
eventually tightens policy.

Sep 24, 2013

Fed’s Dudley ‘wouldn’t rule out’ QE cut this year: CNBC

By Jonathan Spicer

(Reuters) – An influential Federal Reserve policymaker said he “certainly wouldn’t want to rule out” a reduction in the U.S. central bank’s bond-buying program later this year, adding the Fed now expects slower economic growth than it did in June.

The decision “depends on the data,” New York Fed President William Dudley said in a Monday interview aired on CNBC Tuesday. “The thing that we really want to emphasize is that it’s driven by data, not by time.”

Sep 23, 2013

U.S. Fed to push hard with stimulus now; can step back later this year – Dudley

NEW YORK/SAN ANTONIO (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 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.