NEW YORK (Reuters) – Former Federal Reserve Chairman Ben Bernanke will join the Brookings Institution, a politically centrist policy think tank based in Washington, beginning on Monday.
Bernanke, who stepped down as head of the U.S. central bank on Friday after an eight-year tenure marked by financial crisis and policy experimentation in the face of the Great Recession, will join as a distinguished fellow in residence at its economic studies program, Brookings said on Monday.
MUMBAI/NEW YORK, Jan 31 (Reuters) – The Federal Reserve’s
decision to keep trimming its economic stimulus drew fire on
Friday as India’s central bank chief said Americans should be
more attuned to the global impact of their policies, and the IMF
called for vigilance given strains in financial markets.
The push-back came on Fed Chairman Ben Bernanke’s last day
on the job and two days after the U.S. central bank reduced the
pace of its huge asset purchase program. The Fed made the move
on Wednesday despite a bruising selloff in emerging markets that
was prompted in part by the prospect of less U.S. monetary
(Reuters) – The recent drop in emerging markets and U.S. stocks has not hurt the growing momentum of the U.S. economy or its labor market, a top Federal Reserve official said on Friday, adding the Fed should not focus too much on “short-term developments.”
San Francisco Fed President John Williams, speaking on Fox Business television, said the U.S. central bank is nonetheless carefully monitoring emerging-market turmoil and discussed it at a policy meeting this week.
The last seven days has been a glaring example of fallout from the cross-border carry trade. That’s the sort of trade, well known in currency markets, where investors borrow funds in low-rate countries and invest them in higher-rate ones. Some $4 trillion is estimated to have flooded into emerging markets since the 2008 financial crisis to profit off the ultra accommodate policies of the U.S. Federal Reserve, Bank of Japan, European Central Bank and the Bank of England. Now that central banks in developed economies are looking to reverse course and eventually raise rates, that carry trade is unraveling fast, resulting in the brutal sell-off in emerging markets such as Turkey and Argentina over the last week.
The Fed’s decision on Wednesday to keep cutting its stimulus effectively ignores the turmoil in such developing countries. And while the Fed may well be right not to overreact, it makes one wonder just how much attention major central banks pay to the carry trade and its global effects — and it brings to mind a prescient exchange between some of the brightest lights of western economics, just a week before emerging markets were to run off the rails.
(Reuters) – Ben Bernanke did not hesitate when asked whether he was confident that his signature response to the Great Recession would work.
“Well, the problem with QE is that it works in practice but it doesn’t work in theory,” the head of the U.S. Federal Reserve quipped earlier this month during his last public appearance.
Jan 30 (Reuters) – Ben Bernanke did not hesitate when asked
whether he was confident that his signature response to the
Great Recession would work.
“Well, the problem with QE is that it works in practice but
it doesn’t work in theory,” the head of the U.S. Federal Reserve
quipped earlier this month during his last public appearance.
WASHINGTON (Reuters) – The Federal Reserve on Wednesday decided to trim its bond purchases by another $10 billion as it stuck to a plan to wind down its extraordinary economic stimulus despite recent turmoil in emerging markets.
The action was widely expected, although some investors had speculated that the U.S. central bank might put its plans on hold given the jitters overseas.
WASHINGTON, Jan 29 (Reuters) – The U.S. Federal Reserve on
Wednesday announced a further $10 billion reduction in its
monthly bond purchases as it stuck to a plan to wind down its
extraordinary stimulus despite recent turmoil in emerging
Fed Chairman Ben Bernanke, who hands the central bank’s
reins to Vice Chair Janet Yellen on Friday, also adjourned his
last policy-setting meeting without making any changes to the
U.S. central bank’s other main policy plank: its longer-term
plan to keep interest rates low for some time to come.
(Reuters) – Turmoil in emerging markets and a month of disappointing job growth at home are unlikely to deter the Federal Reserve from trimming its bond-buying stimulus on Wednesday, as Ben Bernanke wraps up his last policy meeting at the helm of the U.S. central bank.
Overall signs of improvement in the U.S. economy suggest Fed officials will stay on track to cut monthly purchases of Treasuries and mortgage-backed securities by $5 billion each, bringing the total of their monthly asset purchases to $65 billion.
NEW YORK (Reuters) – The U.S. Federal Reserve, intent on cutting its stimulus again this week, is not about to blink in the face of a brutal selloff of emerging market assets that could yet gain steam in Turkey, Argentina and elsewhere.
Though the central bank’s 16-month-old bond-buying program is meant to boost the U.S. economy, in the past it has lifted currencies and stocks in emerging markets that have benefited from a rush of international investment and the resulting lower interest rates.