Jonathan's Feed
Jul 12, 2013

Bernanke’s challenge clear as Fed officials diverge on QE

JACKSON HOLE, Wyoming (Reuters) – The wide divergence of opinion within the Federal Reserve over when to wind down its unprecedented support for the U.S. economy was on full display on Friday, starkly illustrating Chairman Ben Bernanke’s leadership challenge for the rest of this year.

St. Louis Fed President James Bullard and Charles Plosser, his counterpart at the Philadelphia Fed, sat on the same panel at a conference here, but sang quite different tunes on what to do about the U.S. central bank’s massive bond-buying program.

Jul 12, 2013

Fed official calls for harder policy-tightening plan

JACKSON HOLE, Wyoming (Reuters) – The U.S. Federal Reserve should commit to tightening policy when the unemployment rate falls to a 6.5-percent “trigger,” instead of just using that level as a rough guidepost for considering a rate rise, a top U.S. central bank official said on Friday.

The proposal by Philadelphia Fed President Charles Plosser runs against the grain of most other U.S. monetary policy-makers, who have increasingly stressed that interest rates could well stay near zero well after the U.S. jobless rate hits that level.

Jul 12, 2013

Analysis: Fed mulls adjusting its tune to quell jittery markets

By Ann Saphir and Jonathan Spicer

(Reuters) – Federal Reserve officials are considering moving the goal posts on U.S. monetary policy with a promise to keep interest rates low for longer in the hopes of heading off a troubling rise in market-set borrowing costs.

Top Fed officials, who have pulled out all the stops to boost the U.S. recovery from recession, have worried for months that investors might drive bond yields up when the time came to reduce the central bank’s bond-buying program.

Jul 3, 2013

Fed’s word is its bond, now lost in translation

WASHINGTON/NEW YORK (Reuters) – It probably seemed like a good idea to Federal Reserve officials at the time.

But their decision to stick Fed Chairman Ben Bernanke out on live television two weeks ago to explain how the Fed aims to scale back and eventually end its massive economic stimulus program, without having the message in a well-parsed policy statement he could hide behind, backfired badly.

Jul 2, 2013

High hurdle to ramping up QE3, but possible – U.S. Fed’s Dudley

STAMFORD, Connecticut (Reuters) – The U.S. economic recovery would need to stumble badly to spur the U.S. Federal Reserve to ramp up the pace of its stimulative asset purchases, William Dudley, head of the powerful New York Fed, said on Tuesday.

“If we were very definitely surprised on the downside and things looked really, really weak, I certainty wouldn’t want to rule out raising the pace of asset purchases from the current $85 (billion per month),” he told the Business Council of Fairfield County, noting the current pace is not “hard wired.”

Jul 2, 2013

High hurdle to ramping up QE3, but possible: Fed’s Dudley

STAMFORD, Connecticut (Reuters) – The U.S. economic recovery would need to stumble badly to spur the U.S. Federal Reserve to ramp up the pace of its stimulative asset purchases, William Dudley, head of the powerful New York Fed, said on Tuesday.

“If we were very definitely surprised on the downside and things looked really, really weak, I certainly wouldn’t want to rule out raising the pace of asset purchases from the current $85 (billion per month),” he told the Business Council of Fairfield County, noting the current pace is not “hard wired.”

Jun 28, 2013

Fed’s Stein puts focus on September as time to assess QE3

, June 28 (Reuters) -
S eptember could be an opportune time for the Federal Reserve
to consider scaling back its assets purchase, an influential
official of the U.S. central bank said on Friday, though he said
the Fed must take a long view of economic progress and not be
blinded by the most recent data.

The remarks by Fed Governor Jeremy Stein drew the attention
of economists and investors after he ticked off several examples
of improvement in the labor market since the Fed launched its
bond-buying program last September.

Jun 28, 2013

Highlighting September, Fed’s Stein urges broad assessment of QE3

NEW YORK, June 28 (Reuters) – The Federal Reserve’s eventual
decision to scale back its asset purchases must be based on the
overall economic progress since it launched the stimulus and not
be “excessively sensitive” to the most recent economic data, a
top Fed official said on Friday.

Highlighting the upcoming September policy meeting as a
possible time when the U.S. central bank will need to consider
reducing the quantitative easing program, Fed Governor Jeremy
Stein ticked off several examples of improvement in the labor
market since it was launched in September of last year.

Jun 28, 2013

Latest U.S. data should not be deciding factor in QE3: Fed’s Stein

NEW YORK (Reuters) – As it considers scaling back asset purchases, the Federal Reserve must consider the overall economic improvements since it launched the stimulus and not give undue weight to the most recent economic data, a top Fed official said on Friday.

Highlighting the upcoming September policy meeting as a possible time when the U.S. central bank will need to consider reducing the quantitative easing program, Fed Governor Jeremy Stein ticked off several examples of improvement in the labor market since it was launched in September of last year.

Jun 27, 2013

Closing ranks, Fed officials push back on ‘out of sync’ markets

NEW YORK/WASHINGTON (Reuters) – In remarkably similar tones, two influential Federal Reserve policymakers on Thursday sought to dissuade investors that monetary accommodation was fading any time soon, each going so far as to say markets have misinterpreted the U.S. central bank’s intentions.

The separate speeches from New York Fed President William Dudley and Fed Governor Jerome Powell underscore how uneasily U.S. policymakers have been watching the sharp retrenchment in global markets since last week, when the central bank unveiled a timeline for the reduction and eventual end to asset purchases.