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Mar 2, 2015

Philadelphia Fed names Patrick Harker as Plosser’s successor

March 2 (Reuters) – The Philadelphia Federal Reserve on
Monday named Patrick Harker, one of its directors and the head
of the University of Delaware, as its president and the newest
U.S. monetary policymaker.

Harker, 56, begins the job July 1 and succeeds Charles
Plosser, an outspoken and hawkish Fed official who retired on
Sunday after more than eight years at the helm.

Feb 27, 2015

BOJ’s Nakaso says commitment to price goal ‘unshakable’

NEW YORK (Reuters) – The Bank of Japan’s commitment to achieving its 2 percent price target is “unshakable,” its deputy governor said on Friday, signaling that he has no intention of watering down the goal despite a slowdown in inflation driven by slumping oil prices.

BOJ Deputy Governor Hiroshi Nakaso said Japan now has a good chance of witnessing a “true dawn” with the economy emerging from the hit from last year’s consumption tax hike and now back on a sustained growth path.

Feb 27, 2015

Dudley, top U.S. economists urge later Fed rate hike

NEW YORK (Reuters) – Raising interest rates too late is safer than acting too early, an influential Federal Reserve official said on Friday, endorsing a high-profile research paper that argues that the U.S. economy, given time, can rebound to normal growth.

The paper by four top U.S. economists, presented on Friday to a roomful of powerful central bankers in New York, argues the Fed would be wise to keep rates at rock bottom for longer than planned and then tighten monetary policy more aggressively.

Feb 27, 2015

Fed urged to wait before steeper U.S. rate hikes

NEW YORK (Reuters) – The Federal Reserve should keep interest rates at rock bottom for longer than planned and then tighten monetary policy more aggressively since there is little evidence that the U.S. economy has entered a new era of slower growth, according to findings by an influential group of economists.

The research paper, presented on Friday to a roomful of powerful central bankers in New York, concludes that the Fed cannot be certain to what level it should aim to ultimately raise its key rate. But this equilibrium level, they say, has not fallen as low as claimed by those who warn of a “secular stagnation” in the United States.

Feb 26, 2015

Fed’s Bullard warns over sharp ‘wake up’ call in markets

NEW YORK (Reuters) – Low-yielding bond markets could abruptly “wake up” and reprice for tighter U.S. monetary policy, posing problems for the Federal Reserve as it approaches an interest rate hike, a top Fed official said on Thursday.

St. Louis Fed President James Bullard said in an interview with Reuters that the longer the U.S. central bank keeps rates near zero amid such booming markets, the greater the risk of damaging asset-price bubbles over the next few years.

Feb 23, 2015

Local bankers emerge as Fed ally in fight against audit bill

COLUMBUS, Ohio (Reuters) – Local bankers are joining the
fight against a congressional proposal to audit the U.S. Federal
Reserve’s policy decisions, with more expected to lobby against
the bill if it gains traction in Washington.

The Audit the Fed bill, championed by Rand Paul of Kentucky,
a Republican Senator and likely presidential candidate, would
encourage interference from lawmakers into the central bank’s
monetary policy discussions. A similar Fed audit bill passed the
House of Representatives late last year and a hearing on Fed
transparency is expected to be formally called by the Senate
banking committee, according to people familiar with the matter.

Feb 23, 2015

Exclusive: Local bankers emerge as Fed ally in fight against audit bill

COLUMBUS, Ohio (Reuters) – Local bankers are joining the fight against a congressional proposal to audit the U.S. Federal Reserve’s policy decisions, with more expected to lobby against the bill if it gains traction in Washington.

The audit the Fed bill, championed by Rand Paul of Kentucky, a Republican Senator and likely presidential candidate, would encourage interference from lawmakers into the central bank’s monetary policy discussions. A similar Fed audit bill passed the House of Representatives late last year and a hearing on Fed transparency is expected to be formally called by the Senate banking committee, according to people familiar with the matter.

Feb 20, 2015

Poor Fed communication risks market ‘snap back’: Plosser

PHILADELPHIA (Reuters) – Ineffective communication from the Federal Reserve has increased the risk of a volatile market reaction when the time comes to raise interest rates, the outgoing head of the Philadelphia Fed said on Friday.

In an interview a week before stepping down as president of the Philadelphia branch of the U.S. central bank, Charles Plosser said the Fed will likely have to move at its policy meeting next month to drop a reference to patience in describing its approach to tightening monetary policy.

Feb 18, 2015

Fed aims not to surprise markets when it drops ‘patient’: Powell

NEW YORK (Reuters) – A Federal Reserve official, asked how the central bank plans to manage market expectations when it eventually drops the key “patient” word from its policy statement, said the Fed aims not to surprise investors.

“Our agenda is not to surprise markets,” Fed Governor Jerome Powell said on Wednesday at New York University. “It is to be as clear and transparent as possible, to keep our framework out there, and let markets understand where we’re going.”

Feb 17, 2015

Another Fed official slams ‘Audit’ bill as political incursion

PHILADELPHIA, Feb 17 (Reuters) – Another top Federal Reserve
official on Tuesday joined the battle against proposed U.S.
legislation that would audit the central bank’s policy
decisions, saying it would undermine the Fed’s credibility and
hurt the country.

In his last speech as head of the Philadelphia Fed, Charles
Plosser slammed the so-called “Audit the Fed” bill championed by
Republicans. He added that separate congressional efforts,
including by Democrats, to make presidents of the regional Fed
banks political appointees also amounted to short-term partisan
interference.