Nov 1 (Reuters) – Sandra Pianalto, a quietly ardent
supporter of Federal Reserve Chairman Ben Bernanke, turned some
heads this month when she came out against the central bank’s
recent decision to keep pumping so much money into the U.S.
Yet the speech by Pianalto, who is set to retire as
president of the Federal Reserve Bank of Cleveland early next
year, may set the tone for a yet-to-be-named successor who could
return Cleveland to its outspoken, inflation-fighting roots.
By Alister Bull
Christina Romer, former chair of the White House Council of Economic Advisers and a strong advocate for Janet Yellen to take over from Ben Bernanke as the next chair of the Federal Reserve, slammed the Fed in a lecture last week that accused the U.S. central bank of being too meek and of fighting the wrong battle by being fixated on asset bubbles.
Romer, sometimes touted as a potential candidate to fill one of the 3 vacancies on the Fed’s Board in Washington, or maybe run a regional branch (Cleveland has an opening), also discussed deliberately aiming for 3 or 4 percent inflation, as well as targeting nominal GDP.
NEW YORK (Reuters) – Federal Reserve officials sighed in relief on Thursday after the U.S. government avoided a potentially devastating default, relieving the central bank of the need to take yet more extraordinary measures to stabilize the financial system.
But with Washington’s borrowing authority only raised temporarily, the Fed may still be called on in the months ahead to deploy a largely experimental arsenal should another round of political dysfunction result in an actual default.
/NEW YORK (Reuters) – The Federal Reserve will likely defer any decision to trim its massive bond buys until at least December, two top Fed officials suggested on Thursday, although a third Fed policymaker made no bones about her view that she opposes any such delay.
A budget battle in Washington that shut government offices for 16 days and brought the United States to the brink of default has injected uncertainty into the economy’s growth trajectory.
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.”
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.
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.
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.
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.
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.