(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.
PHILADELPHIA (Reuters) – The latest U.S. jobs report on Friday showed that government spending cuts have so far not been as damaging as some feared, Philadelphia Fed President Charles Plosser said, adding it only entrenched his opinion that the central bank should reduce its bond buying “now.”
In an interview, the long-time critic of the Fed’s quantitative easing program said he was comfortable with the recent rise in market interest rates as investors increasingly predict he and fellow policy-makers will reduce the pace of accommodation sooner than later.