June 24 (Reuters) – Less than a week after the U.S. Federal
Reserve set off a cascade of selling in global markets, two of
its top officials downplayed the notion of an imminent end to
monetary stimulus and said on Monday the market reaction was not
yet cause for concern.
The Fed is center stage for investors after Chairman Ben
Bernanke last week said the central bank expected to reduce its
bond-buying later this year, and to halt the stimulus program
altogether by mid-2014 if the economy improves as forecast.
(Reuters) – Monetary policies may need to be “more accommodative than otherwise” in the wake of financial crises that impair a central bank’s ability to nurture the real economy, an influential Federal Reserve policymaker argued on Monday.
In his first public comments since the Fed last week unveiled a plan for reducing its stimulative asset purchases, New York Fed President William Dudley said the U.S. central bank must consider financial instability when formulating its policies.
(Reuters) – Through the dark days of the financial crisis, and the grey days of the halting recovery that have followed, investors have always been able to count on backing from two sources – Ben Bernanke and Beijing.
They have provided stimulus, mainly by pumping funds into the U.S. and Chinese economies in various ways, when other pillars of support had become unreliable.