Jonathan's Feed
Aug 14, 2013

Yellen seen as likely next Fed chair despite Summers chatter: Reuters poll

NEW YORK (Reuters) – Janet Yellen is still seen as the most likely successor to U.S. Federal Reserve Chairman Ben Bernanke, according to a Reuters poll of economists, despite a swell of speculation in recent weeks that Lawrence Summers might have the inside track.

The poll, released Wednesday, found that 26 out of 39 economists predicted that Yellen, the Fed’s current vice chairman, would take the reins at the U.S. central bank in February, 2014. Only eight thought the job would go to Summers, a former U.S. Treasury secretary.

Jul 18, 2013
via MacroScope

Curse of the front-runner a bad omen for Fed contender Yellen?

Photo

The buzz on who will replace Ben Bernanke as Federal Reserve chairman has grown this year and amplified recently with talk of Lawrence Summers as a real possibility. There is also lingering speculation over Timothy Geithner, another previous U.S. Treasury Secretary, and former Fed Vice Chair Roger Ferguson among others as possible successors. Bernanke has provided no hint he wants to stay for a third term.

But above the din the central bank’s current vice chair, Janet Yellen, has remained the front-runner. Her deep experience and implicit policy continuity has crowned her the heirĀ apparentĀ until proven otherwise. A Reuters poll of economists showed Yellen was seen as far and away the most likely candidate.

Jul 17, 2013

Facing lawmakers, Bernanke to walk a fine line on Fed policy

July 17 (Reuters) – Federal Reserve Chairman Ben Bernanke on
Wednesday is expected to balance a message of enduring central
bank support for the U.S. economy with a reminder that the Fed’s
ultra-easy policies cannot last forever.

The head of the U.S. central bank will probably seek to use
his testimony to Congress on monetary policy to calm the nerves
of jittery investors worried about life without the Fed’s $85
billion in monthly bond purchases.

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.