Jonathan's Feed
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.

Jun 27, 2013

Fed bond-buying could be more aggressive than new timeline: Dudley

NEW YORK (Reuters) – The Federal Reserve’s asset purchases would be more aggressive than the timeline Chairman Ben Bernanke outlined last week if economic growth and the labor market turn out weaker than expected, the influential head of the New York Fed said on Thursday.

Pushing back hard against market concerns over the withdrawal of quantitative easing, William Dudley stressed in a speech that the newly adopted timeline for reducing the pace of bond buying depends not on calendar dates but on the economic outlook, which remains quite unclear.

Jun 25, 2013
via MacroScope

Full blown damage control?

Photo

Call it the great wagon circling.

Central bankers are talking tough in the face of the wild gyrations in financial markets. But it’s becoming increasingly clear they are sweating – and drawing up contingency plans to assuage the panic that’s taken hold since Chairman Ben Bernanke last week¬†sketched out the Fed’s plan for winding down its QE3 bond-buying program. U.S. policymakers in particular must have predicted investors would react strongly. But now that longer-term borrowing costs have spiked to near a two-year high, they look to be entering full-blown damage control.

Here’s Richard Fisher, head of the Dallas Fed, speaking to reporters in London on Monday:

Jun 24, 2013

Two Fed officials downplay worries over end to U.S. stimulus

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.

Jun 24, 2013

Financial crises may call for easier monetary policies: Fed’s Dudley

By Jonathan Spicer

(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.

Jun 24, 2013

When the Ben and Beijing party comes to an end

By Jonathan Spicer

(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.