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Apr 16, 2014

Yellen says full U.S. employment coming into view, slowly

NEW YORK (Reuters) – Federal Reserve Chair Janet Yellen said on Wednesday the U.S. economy appeared to be slowly moving toward full employment, but that it would need help from the central bank for some time to come. In her second public speech since taking the Fed’s helm, Yellen said it was “quite plausible” the economy would be back to near full employment and a healthier level of inflation by the end of 2016.

“I do think we are seeing very meaningful progress, although clearly … the goal has not been achieved at this point,” she told the Economic Club of New York.

Apr 16, 2014

Yellen stresses employment, inflation in Fed’s coming decision

NEW YORK (Reuters) – The Federal Reserve’s still distant decision to raise interest rates will depend on how far the U.S. economy remains from the central bank’s employment and inflation goals, and how long it will likely take to meet them, Fed Chair Janet Yellen said on Wednesday.

Yellen, in her second public speech as Fed chair, largely restated the U.S. central bank’s stance, stressing that it would respond to shifting economic conditions as it judges when to finally tighten monetary policy after years of unprecedented stimulus.

Apr 16, 2014

Yellen stresses employment, inflation in Fed’s coming tightening decision

NEW YORK (Reuters) – The Federal Reserve’s still distant decision to raise interest rates will depend on how far the U.S. economy remains from the central bank’s employment and inflation goals, and how long it will likely take to meet them, Fed Chair Janet Yellen said on Wednesday.

Yellen, in her second public speech as Fed chair, largely restated the U.S. central bank’s stance, stressing that it would respond to shifting economic conditions as it judges when to finally tighten monetary policy after years of unprecedented stimulus.

Apr 15, 2014

Yellen prepares Wall Street for more wholesale funding rules from Fed

NEW YORK/ATLANTA (Reuters) – The U.S. Federal Reserve is considering adopting yet more measures to address the remaining stability risks in the short-term wholesale funding markets that seized during the 2008 financial crisis, Fed Chair Janet Yellen said on Tuesday.

In a video speech, Yellen praised new liquidity standards for global banking firms, but warned that they do not apply to so-called shadow banks or to the financial system as a whole.

Apr 14, 2014

ECB prepared to ease if inflation low for too long – Noyer

NEW YORK, April 14 (Reuters) – The European Central Bank
stands ready to take unconventional policy steps to fend off a
“too prolonged” period of low inflation, though for now it
expects inflation to rebound slowly, an ECB policymaker said on
Monday.

“Should we note a deviation from this path, we will use
every instrument within our mandate, including unconventional
ones, in order to cope effectively with risks of a too prolonged
period of low inflation,” European Central Banker Christian
Noyer told a luncheon at the New York Stock Exchange.

Apr 13, 2014

Poland c.bank ‘preparing’ not ‘planning’ to use unconventional policies

WASHINGTON, April 13 (Reuters) – Poland’s central bank is
“preparing” to possibly use unconventional policy instruments if
need be, but not “planning” on it, its governor said on Sunday.

Marek Belka, speaking at an International Monetary Fund
event in Washington, said the instruments could be used to
intervene in different asset classes. Referring to
macroprudential policymaking, he said Poland needed to “brace
ourselves for the unthinkable.”

Apr 10, 2014

Cool reception for RBI chief urging global cooperation

WASHINGTON (Reuters) – The head of the Reserve Bank of India (RBI) ran into a wall of resistance on Thursday when he urged some counterparts in developed economies to more formally consider the effects their domestic stimulus has on emerging markets.

Alongside central bankers from the United States, Europe, and Brazil, Raghuram Rajan took the stage at a high-profile event here to list his proposals for better monetary cooperation and a global “safety net” that could provide funds for countries in case of economic emergency.

Apr 10, 2014

Cool reception for India central banker urging global cooperation

WASHINGTON, April 10 (Reuters) – The head of India’s central
bank ran into a wall of resistance on Thursday when he urged
some counterparts in developed economies to more formally
consider the effects their domestic stimulus has on emerging
markets.

Alongside central bankers from the United States, Europe,
and Brazil, Raghuram Rajan took the stage at a high-profile
event here to list his proposals for better monetary cooperation
and a global “safety net” that could provide funds for countries
in case of economic emergency.

Apr 10, 2014

Fed officials fretted over investor reaction to rate forecasts – minutes

WASHINGTON/SAN FRANCISCO (Reuters) – Federal Reserve officials fretted last month that investors would overreact to policymakers’ fresh forecasts on interest rates that appeared to map out a more aggressive cycle of rate hikes than was actually anticipated.

The published rate forecasts of the current 16 Fed policymakers, known as the “dots” charts, suggested the federal funds rate would end 2016 at 2.25 percent, a half percentage point above Fed officials’ projections in December. Bonds fell when the charts were initially released, at the close of the U.S. central bank’s March 18-19 meeting, as investors priced in slightly sharper rate rises.

Apr 10, 2014

Fed’s Tarullo sees little need for rapid U.S. rate hikes

WASHINGTON (Reuters) – The modest pace of U.S. economic growth in recent years suggests that when the time comes to raise interest rates the Federal Reserve will be able to do so gradually without fear of a sudden surge in inflation, a top Fed official said on Wednesday.

Many economists, both at the Fed and outside, had expected the economy to roar back after the Great Recession, requiring a rapid tightening of policy at some point, Fed Board Governor Daniel Tarullo told a dinner forum in Washington, D.C.