Fed’s Bernanke-Rules for financial giants on track
WASHINGTON, July 20 (Reuters) – U.S. regulators will soon
lay out rules governing financial firms so large their collapse
could rattle global markets, Federal Reserve Chairman Ben
Bernanke said.
Bernanke, in testimony prepared for a Thursday Senate
Banking Committee hearing, also said regulators are looking
into potential gaps in last year’s Dodd-Frank financial
oversight law, including the oversight of money market mutual
funds and the tri-party repo system.
Talk is cheaper
The Federal Reserve is hinting that if it should come to further monetary easing to stimulate growth, it might prefer to talk the talk rather than walk the walk.
Fed Chairman Ben Bernanke said last week the central bank is “ready to respond” if the recovery stalls. While such a move isn’t imminent, he made clear that even with interest rates near zero, the Fed has plenty of options to spur growth if it needs to. When Bernanke in August 2010 spelled out alternative policy measures before launching the Fed’s second round of quantitative easing — $600 billion worth of Treasuries purchases — he listed bond buying first.
Analysis: Core concept: Underlying inflation should ease
WASHINGTON (Reuters) – Don’t expect recent increases in underlying U.S. inflation to stick or to prevent the Federal Reserve from seriously considering more monetary policy stimulus if the recovery looks at risk.
The core consumer price index — which excludes volatile food and energy prices — rose a relatively stiff 0.3 percent in June, pushing the year-on-year rate to 1.6 percent. It was the largest year-on-year gain since January 2010.
The credibles
Is Federal Reserve Chairman Ben Bernanke the Paul Volcker of falling prices?
Just as Volcker cemented the Fed’s inflation-fighting credibility by knocking soaring prices back to earth with recession-causing rate hikes, Bernanke may be carving out a similar niche in thwarting the other dark side of price stability: combating the threat of a deflationary spiral.
In a research note, JPMorgan economist Michael Feroli wonders why inflation has stabilized at low levels despite high unemployment and slow growth. His conclusion: the Fed’s aggressive measures to beat back the recession and support the weak recovery have led markets to be confident the Fed will not allow a deflationary psychology to take hold.
Analysis: Underlying inflation should ease
WASHINGTON (Reuters) – Don’t expect recent increases in underlying inflation to stick or to prevent the Federal Reserve from seriously considering more monetary policy stimulus if the recovery looks at risk.
The core consumer price index — which excludes volatile food and energy prices — rose a relatively stiff 0.3 percent in June, pushing the year-on-year rate to 1.6 percent. It was the largest year-on-year gain since January 2010.
Bernanke warns spending cuts could derail recovery
WASHINGTON (Reuters) – Federal Reserve Chairman Ben Bernanke warned on Thursday that overzealous cuts to government spending in the short term could derail a shaky recovery and said a debt default could wreak financial havoc.
“I only ask … as Congress looks at the timing and composition of its changes to the budget, that it does take into account that in the very near term the recovery is still rather fragile, and that sharp and excessive cuts in the very short term would be potentially damaging to that recovery,” Bernanke told the Senate Banking Committee.
Deep spending cuts could derail recovery – Bernanke
WASHINGTON (Reuters) – U.S. Federal Reserve Chairman Ben Bernanke warned Congress on Thursday that overzealous cuts to government spending could derail an already fragile recovery and said a U.S. debt default could wreak financial havoc.
“I only ask … as Congress looks at the timing and composition of its changes to the budget, that it does take into account that in the very near term the recovery is still rather fragile, and that sharp and excessive cuts in the very short term would be potentially damaging to that recovery,” Bernanke told members of the Senate Banking Committee.
Bernanke repeats Fed to act if recovery stumbles
WASHINGTON (Reuters) – Federal Reserve Chairman Ben Bernanke renewed his promise on Thursday that the central bank could put more monetary stimulus into play if the economic recovery stumbles.
On the second day of delivering the Fed’s semiannual monetary policy report to Congress, Bernanke is also expected to repeat his warning that a debt default would be devastating for the U.S. and the global economy.
Washington Extra-Don’t stop ’til you get enough
WASHINGTON, July 13 (Reuters) – The Fed’s quantitative
easing has been castigated as clueless monetary policy,
provocation of currency war and hooliganism. But that isn’t
stopping Fed chief Ben Bernanke from considering another round
to buck up the flagging U.S. economic recovery.
The Federal Reserve chairman told lawmakers if the economy
can’t shake free of the doldrums, the Fed “remains prepared to
respond.”
Bernanke: Fed “prepared to respond” if economy worsens
WASHINGTON, July 13 (Reuters) – Federal Reserve Chairman
Ben Bernanke said on Wednesday the central bank is ready to
ease monetary policy further if the economy weakens and
inflation moves lower, hinting policymakers were actively
mulling further stimulus.
While holding to a view that recent economic softness would
eventually pass, he appeared less confident in that projection
– and more willing to entertain the possibility of another
round of stimulus.
-
About Mark
-
Follow Mark
