Jonathan's Feed
Oct 17, 2013

Fed’s Fisher warns of potential U.S. housing bubble, MBS buys

NEW YORK (Reuters) – A top Federal Reserve official said on Thursday he is seeing fresh signs of a U.S. “housing bubble” and warned about the central bank’s ongoing purchases of mortgage-based bonds.

“I’m beginning to see signs not just in my district but across the country that we are entering, once again, a housing bubble,” Dallas Fed President Richard Fisher told reporters after a speech in New York. “So that leads me … to be very cautious about our mortgage-backed securities purchase program.”

Oct 15, 2013

Exclusive: Fed’s Fisher, vocal hawk, sees no QE cuts this month

NEW YORK (Reuters) – “Reckless” U.S. fiscal policy will likely force the Federal Reserve to stand pat on monetary policy this month, one of the Fed’s biggest critics of the U.S. central bank’s bond-buying program said on Tuesday.

Richard Fisher, the hawkish president of the Federal Reserve Bank of Dallas, said that the fiscal standoff means even he would find it difficult to make a case for scaling back bond purchases at the Fed’s policy meeting on October 29-30.

Oct 15, 2013

Fed’s Fisher, vocal hawk, sees no QE cuts this month

NEW YORK, Oct 15 (Reuters) – “Reckless” U.S. fiscal policy
will likely force the Federal Reserve to stand pat on monetary
policy this month, one of the Fed’s biggest critics of the U.S.
central bank’s bond-buying program said on Tuesday.

Richard Fisher, the hawkish president of the Federal Reserve
Bank of Dallas, said that the fiscal standoff means even he
would find it difficult to make a case for scaling back bond
purchases at the Fed’s policy meeting on Oct. 29-30.

Oct 14, 2013

Fed’s Yellen often warns about lingering unemployment -ECB official

NEW YORK, Oct 14 (Reuters) – Janet Yellen, the nominee
expected to run the U.S Federal Reserve beginning next year,
regularly warns at meetings of the world’s central bankers that
short-term unemployment can evolve into more permanent
“structural” unemployment, a top European Central Bank official
said on Monday.

“When central bankers meet every two months in Basel
(Switzerland), the one central banker who has spoken out very
strongly about this message is Mrs. Janet Yellen,” said Ewald
Nowotny, a member of the ECB’s Governing Council.

Oct 10, 2013

Fed officials split on policy, united on default danger

ST LOUIS/ BOISE, Idaho (Reuters) – While officials of the Federal Reserve have sparred over whether the U.S. central bank should continue full-bore with its massive bond-buying stimulus, two Fed officials with differing policy views agreed on Thursday that a national debt default could have devastating effects.

Budget gridlock at the U.S. Congress led to an October 1 partial government shutdown that threatens to hurt economic growth and has already delayed the release of key economic data such as the September jobs report. Lawmakers are now locked in debate over how to raise the government’s borrowing limit and avoid a U.S. debt default on October 17.

Oct 10, 2013

Fed’s Bullard – fiscal problems make October QE cut less likely

LOUIS (Reuters) – The Federal Reserve is less likely to reduce its bond-buying program this month given the U.S. government shutdown and resulting lack of economic data, as well as the ongoing debate over the debt ceiling, a top central bank policymaker said on Thursday.

St. Louis Fed President James Bullard, a voter on policy this year, said the fiscal problems in Washington have “changed the odds” on whether the central bank will trim the monthly $85-billion (53.2 billion pounds) quantitative easing program (QE) at a meeting set for October 29-30.

Oct 10, 2013

Fed less likely to trim QE this month due to fiscal problems: Bullard

LOUIS (Reuters) – A reduction in the Federal Reserve’s bond-buying program is less likely to take place later this month given the U.S. government shutdown and resulting lack of economic data, as well as the ongoing debate over the debt ceiling, a top central bank policymaker said on Thursday.

St. Louis Fed President James Bullard, a voter on policy this year, said the fiscal problems in Washington have “changed the odds” on whether the central bank will trim the monthly $85-billion quantitative easing program at a meeting set for October 29-30.

Oct 9, 2013

U.S. Treasury, Fed planning for possible default: source

WASHINGTON/NEW YORK (Reuters) – U.S. Treasury and Federal Reserve officials worried about the growing possibility of a catastrophic default are crafting contingency plans to mitigate the economic fallout if Congress fails to extend America’s borrowing authority, a source familiar with the plans said.

With just eight days before the Treasury Department says the U.S. will hit its $16.7 trillion borrowing limit, lawmakers and the White House remain far from a deal to extend it. Officials are examining what options might be available to calm financial markets if a U.S. debt payment is missed.

Oct 9, 2013

Fed shock decision not to taper QE was ‘close call’: minutes

NEW YORK/SAN FRANCISCO (Reuters) – The Federal Reserve’s shock decision last month not to reduce its support for the U.S. economy was a “relatively close call” for policymakers, according to minutes of the meeting that also suggested there was still broad support to trim bond-buying this year.

Since last month’s meeting, the outlook for scaling back bond purchases has grown cloudier.

Oct 8, 2013

In tight decision, a Fed centrist wanted to trim QE

/NEW YORK (Reuters) – A Federal Reserve official known for her centrist views said on Tuesday she wanted to reduce the U.S. central bank’s asset purchases last month, adding her voice to the Fed’s so-called policy hawks who have spoken out against the shock decision to leave monetary policy unchanged.

The admission by Sandra Pianalto, who is retiring as president of the Cleveland Fed early next year, may come as a surprise given her long-standing support of Chairman Ben Bernanke’s concerted effort to boost the U.S. economy in the wake of the Great Recession.