NEW YORK/SAN FRANCISCO, Sept 19 (Reuters) – Federal Reserve
Chairman Ben Bernanke’s shock announcement on Wednesday that the
U.S. central bank was not ready to pare back its stimulus
program could make it more difficult for his successor to
navigate the Fed’s way out of its extraordinarily aggressive
Economists had expected Bernanke to follow through with the
rough chart he had drafted in June: trimming the Fed’s
bond-buying program before year-end and ending it by mid-2014,
when he expected the unemployment rate to be around 7 percent.
Sept 12 (Reuters) – Heads of the 12 U.S. Federal Reserve
regional banks on Thursday strongly criticized a component of a
U.S. Securities and Exchange Commission proposal aimed at
preventing runs on money-market funds, saying it does little to
change current rules.
The measure, part of a series of proposed SEC changes to
reduce risks in the $2.5 trillion money-market industry, would
let funds ban withdrawals or charge fees for them in times of
stress like the 2008 credit crisis.
NEW YORK (Reuters) – Heads of the 12 U.S. Federal Reserve regional banks on Thursday strongly criticized a component of a U.S. Securities and Exchange Commission proposal aimed at preventing runs on money-market funds, saying it did little to change current rules.
The measure, part of a series of proposed SEC changes to reduce risks in the $2.5 trillion money-market industry, would let funds ban withdrawals and charge fees for them in times of stress like the 2008 credit crisis.
NEW YORK (Reuters) – The beginning of the end of the Federal Reserve’s determined support for the U.S. economy is expected to come next week when top officials gather for one of the most highly anticipated meetings since the end of the Great Recession.
Despite a lackluster August jobs report, the U.S. central bank will probably reduce its bond-buying program from the current $85 billion per month, given the progress the economy has made over the last year.
“Money for Nothing: Inside the Federal Reserve” is a slick, thoughtful and alternately infuriating-and-funny documentary that premiered in New York’s Florence Gould Hall last night. It gives the U.S. central bank a pretty thorough lashing, especially Alan Greenspan. The former Fed Chairman is strung up like a piñata and smacked around as the culmination of long-misguided U.S. monetary policy that, crisis after crisis, lacks the creativity and courage to remove the proverbial punch bowl when the time is right.
The film, by writer and director Jim Bruce, is narrated by Liev Schreiber but almost doesn’t need him given the series of interviews that drive an account of the Fed over the 100 years of its existence. Paul Volcker, Alice Rivlin, Charles Plosser, Jeffrey Lacker, Allan Meltzer, Raghuram Rajan, Alan Blinder and Jim Grant are among those who weigh in. Oh and Janet Yellen, but not Lawrence Summers.
NEW YORK/WASHINGTON, Sept 8 (Reuters) – The Federal Reserve
is developing yet another tool to help it keep borrowing costs
on target when the era of zero-interest rates eventually ends,
suggesting policymakers may doubt their existing ways and means
can handle the task on their own.
The newfangled tool is designed to mop up excess cash in the
financial system, which if left unchecked could keep rates lower
than perhaps desired by the Fed at a later date. If successful,
it could smooth what may be a rocky transition to tighter
monetary policy when the U.S. central bank finally decides the
economy is strong enough to withstand higher interest rates.
WASHINGTON/NEW YORK (Reuters) – The White House has yet to begin vetting Federal Reserve Vice Chair Janet Yellen to take over the top job at the U.S. central bank, according to three sources with knowledge of the situation, after one report said the process had begun for her main rival for the job.
Picking a replacement for Fed Chairman Ben Bernanke, whose second four-year term ends in January, is one of the most important jobs President Barack Obama faces. The White House has said the president has not made up his mind and that no announcement is likely until the fall.
Aug 23 (Reuters) – The Federal Reserve faces more severe
risks if it tightens policies too early than if it waits too
long, a potential long-shot candidate to run the U.S. central
bank wrote in a paper published this month.
Former Fed Vice Chairman Donald Kohn said the decision to
exit easy-money policies will be more difficult this time
around, arguing that a move to raise interest rates should hinge
on “the risk of overheating and of a sustained rise in inflation
(Reuters) – Three U.S. Federal Reserve officials weighed in on Friday on the key question of when to reduce the central bank’s bond buying, but their divergent views offered little more clarity for investors trying to predict what will happen at a Fed policy meeting next month.
The comments by Atlanta Fed President Dennis Lockhart, his St. Louis counterpart, James Bullard, and John Williams of the San Francisco Fed all suggested U.S. monetary policymakers want to keep their options open headed into a much-anticipated meeting in Washington on September 17-18.
NEW YORK, Aug 23 (Reuters) – A new chairman is just the
beginning of what could be a big leadership change at the
Federal Reserve next year, giving investors yet another reason
to second-guess the U.S. central bank’s plan to scale back its
support for the economy.
Up to six officials who would otherwise vote on monetary
policy, or half of the central bank’s voting ranks, could
conceivably be gone in 2014, most of them by the end of January.