CHICAGO/NEW YORK, April 16 (Reuters) – Two top Federal
Reserve policy doves offered clashing views on the U.S. economic
outlook on Tuesday, although both agreed the job market has not
yet improved enough to merit any cuts to the central bank’s
The influential chief of the New York Fed, William Dudley,
told the Staten Island Chamber of Commerce he expects “sluggish”
economic growth of 2 to 2.5 percent this year and only a modest
decline in unemployment.
NEW YORK, April 16 (Reuters) – An influential Federal
Reserve official said on Tuesday the weak March jobs report made
him more cautious on how far the economy has come, and
underscores the need for the U.S. central bank to keep buying
In a breakfast address, New York Fed President William
Dudley said he expects “sluggish” economic growth of 2 to 2.5
percent this year and only a modest decline in unemployment. The
labor market, he said, has not yet shown the substantial
improvement the Fed seeks.
BOSTON (Reuters) – The droves of Americans who have abandoned hope of finding a job should make the Federal Reserve hesitant to remove its support for the economy, according to a study that makes a bold argument for a sustained easy monetary policy.
The findings of the study were the buzz of a high-profile conference at the Boston Federal Reserve Bank last week on how best to return employment to pre-recession levels.
BOSTON (Reuters) – The Federal Reserve should keep buying mortgage bonds even if it starts reducing purchases of Treasuries, and in the years ahead it would be wise to not sell them altogether, a top central banker said.
In an interview, Boston Fed President Eric Rosengren listed three main advantages of holding mortgage-backed securities (MBS) on the Fed’s balance sheet even as the U.S. central bank begins to wind down its ultra accommodative policies.
April 13 (Reuters) – Federal Reserve policymakers went out
of their way on Saturday to play down the risk that aggressive
measures to bolster the U.S. economy would lead to inflation in
the future, in a clear signal of support for its ongoing actions
to spur growth.
The U.S. central bank last month maintained a controversial
program of buying $85 billion of bonds a month, while pledging
to keep interest rates near zero until unemployment hits at
least 6.5 percent, so long as inflation stays under 2.5 percent.
BOSTON (Reuters) – Two dovish Federal Reserve policymakers on Saturday highlighted the central bank’s good record keeping inflation close to target, arguing the Fed needs to stay focused on accommodative policies despite some outsized fears over future inflation.
Chicago Fed President Charles Evans and Narayana Kocherlakota of the Minneapolis Fed, speaking at a forum on how best to heal the troubled U.S. labor market, sought in effect to push back against more hawkish-minded officials who want to wind down the Fed’s extraordinarily easy monetary policies.
BOSTON, April 13 (Reuters) – The U.S. Federal Reserve and
the Bank of England have set monetary policy in similar ways
regardless of their contrasting official mandates, top British
and U.S. policymakers argued at a forum on how central banks can
David Miles, an external member of the Bank of England’s
Monetary Policy Committee, on Saturday threw his weight behind
an argument made a day earlier by Boston Fed President Eric
BOSTON (Reuters) – A top Federal Reserve official on Friday defended the U.S. central bank’s dual mandate of full employment and price stability, and pointed to economic trends that suggest an even more accommodative policy stance might have been needed since the Great Recession.
Boston Fed President Eric Rosengren, redoubling his support of the currently very easy U.S. monetary policies, argued the Fed’s inflation record over the past 15-20 years has been as good as or better than central banks in Europe that have only a single price-stability mandate.