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Aug 21, 2014

U.S. regulators step up warnings to banks for poor risk-spotting

NEW YORK (Reuters) – U.S. regulators are sending some of the biggest global banks verbal warnings as they crack down on the firms’ poor grasp of their own weaknesses, and push for rapid improvements in risk assessment, according to two sources familiar with the matter.

The firms who received the warnings are among the largest banks in the world, but the sources declined to name individual firms because the enforcement actions are not public. Given the regular contact between supervisors and bank officials, the warnings could have come in meetings, phone calls, or letters.

Aug 21, 2014

Exclusive: U.S. regulators step up warnings to banks for poor risk-spotting

NEW YORK (Reuters) – U.S. regulators are sending some of the biggest global banks verbal warnings as they crack down on the firms’ poor grasp of their own weaknesses, and push for rapid improvements in risk assessment, according to two sources familiar with the matter.

The firms who received the warnings are among the largest banks in the world, but the sources declined to name individual firms because the enforcement actions are not public. Given the regular contact between supervisors and bank officials, the warnings could have come in meetings, phone calls, or letters.

Aug 13, 2014

Fed officials urge changes to still-risky U.S. funding markets

NEW YORK (Reuters) – A serious re-evaluation of the still-risky short-term funding market is overdue, two top Federal Reserve officials said on Wednesday, with one urging a supervisory revamp and higher capital requirements for broker-dealers given the threat they still pose to the U.S. financial system.

Among the U.S. central bank’s most influential voices on regulation, the officials issued their warning to bankers, supervisors and academics gathered at the New York Fed for a conference on risks that remain in wholesale funding markets six years after the financial crisis.

Aug 13, 2014

Fed officials urge changes to still-risky U.S. funding markets

NEW YORK, Aug 13 (Reuters) – A serious re-evaluation of the
still-risky short-term funding market is overdue, two top
Federal Reserve officials said on Wednesday, with one urging a
supervisory revamp and higher capital requirements for
broker-dealers given the threat they still pose to the U.S.
financial system.

Among the U.S. central bank’s most influential voices on
regulation, the officials issued their warning to bankers,
supervisors and academics gathered at the New York Fed for a
conference on risks that remain in wholesale funding markets six
years after the financial crisis.

Aug 13, 2014

Insight – Yellen resolved to avoid raising rates too soon, fearing downturn

WASHINGTON/NEW YORK (Reuters) – Approaching a historic turn in U.S. monetary policy, Janet Yellen has staked her tenure as chair of the Federal Reserve on a simple principle: she’d rather fight inflation than another economic downturn.

Interviews with current and former Fed officials indicate that Yellen and core decision-makers at the U.S. central bank are determined not to raise interest rates too early and risk hurting the fragile U.S. economy.

Aug 12, 2014

INSIGHT: Yellen resolved to avoid raising rates too soon, fearing downturn

WASHINGTON/NEW YORK (Reuters) – Approaching a historic turn in U.S. monetary policy, Janet Yellen has staked her tenure as chair of the Federal Reserve on a simple principle: she’d rather fight inflation than another economic downturn.

    Interviews with current and former Fed officials indicate that Yellen and core decision-makers at the U.S. central bank are determined not to raise interest rates too early and risk hurting the fragile U.S. economy.

Aug 12, 2014

Yellen resolved to avoid raising rates too soon, fearing downturn

WASHINGTON/NEW YORK, Aug 12 (Reuters) – Approaching a
historic turn in U.S. monetary policy, Janet Yellen has staked
her tenure as chair of the Federal Reserve on a simple
principle: she’d rather fight inflation than another economic
downturn.

Interviews with current and former Fed officials indicate
that Yellen and core decision-makers at the U.S. central bank
are determined not to raise interest rates too early and risk
hurting the fragile U.S. economy.

Jul 24, 2014

As U.S. strengthens, sluggish wages explain Fed’s caution

NEW YORK/SAN FRANCISCO (Reuters) – The U.S. Federal Reserve’s policy statement, unchanged for the last four months, will probably stay that way until at least September for one main reason: slow wage growth.

Everything from job growth and inflation to manufacturing and retail sales are stronger now that U.S. economic growth has rebounded from a brutal winter. Some employers are even complaining about a lack of skilled workers, and surveys are showing businesses boosting compensation or planning to do so.

Jul 17, 2014

Are markets poised for Taper Tantrum 2.0?

SAN FRANCISCO/NEW YORK (Reuters) – Investors may be ignoring subtle warnings from the Federal Reserve that a rate rise may come sooner than they think, setting the stage for another painful market contraction much like last year’s “taper tantrum.”

Catching investors off guard is the last thing U.S. central bankers want to do, which helps explain their repeated recent warnings over complacency in financial markets, and Fed Chair Janet Yellen’s pointed comments this week about banks and others building up dangerous “interest rate risk.”

Jul 7, 2014

Central banks ending era of clear promises, return to ‘artful’ policy

NEW YORK/TOKYO (Reuters) – The world’s major central banks are returning to a more opaque and artful approach to policymaking, ending a crisis-era experiment with explicit promises that they found risked their credibility and did not substitute for action.

From Washington to London to Tokyo, the global shift from transparency to flexibility underscores the challenges central bankers face as they test the limits of what monetary policy can achieve.