Chief Correspondent, Hong Kong
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Aug 22, 2014

As Fed debates rate path, focus on jobs data stirs its own debate

JACKSON HOLE, Wyo, Aug 22 (Reuters) – The Federal Reserve’s
intensive focus on a wide range of labor market data to guide
policy-making is driving a wedge between its core
decision-makers and others who feel the central bank is straying
from traditional guideposts.

In a speech here on Friday, Fed Chair Janet Yellen gave her
most detailed analysis yet of what still plagues the American
labor market five years after the recession, from stagnant wages
to the large number of part-time workers to those who have given
up the search for work.

Jul 31, 2014

Fed nods to firmer prices yet still focused on labor weakness

WASHINGTON (Reuters) – The Federal Reserve on Wednesday reaffirmed it was in no rush to raise interest rates, even as it upgraded its assessment of the U.S. economy and expressed some comfort that inflation was moving up toward its target.

After a two-day meeting, Fed policymakers took note of both faster economic growth and a decline in the unemployment rate, but expressed concern about remaining slack in the labor market.

Jul 30, 2014

Fed nods to firmer inflation, still focused on labor weakness

WASHINGTON, July 30 (Reuters) – The Federal Reserve on
Wednesday upgraded its assessment of the U.S. economy, taking
note of a decline in the jobless rate and signaling more comfort
that inflation was moving up toward its target.

Still, after a two-day meeting, Fed policymakers reiterated
concerns about slack in the labor market and reaffirmed that it
is in no rush to raise interested rates.

Jul 30, 2014

Fed presses forward with bond buying, cites uptick in inflation

WASHINGTON (Reuters) – The Federal Reserve on Wednesday pressed ahead with its plan to wind down its bond-buying stimulus and upgraded its assessment of the U.S. economy, while reaffirming it is in no rush to raise interest rates.

The central bank cut its monthly asset purchases to $25 billion from $35 billion, leaving it on course to shutter the program this fall.

Jul 30, 2014

U.S. House panel approves bill to force Fed to follow rule

WASHINGTON, July 30 (Reuters) – The U.S. House of
Representatives Financial Services Committee narrowly approved a
bill on Wednesday that would require the Federal Reserve to set
a specific rule to follow when implementing monetary policy.

The bill, which is opposed by the U.S. central bank, passed
the panel on a 32-26 vote, clearing it for possible
consideration by the full House.

Jul 30, 2014

Fed seen trimming bond buys, could offer vague rate clues

WASHINGTON, July 30 (Reuters) – The U.S. Federal Reserve on
Wednesday looks certain to press forward with its plan to wind
down its bond-buying stimulus, and could offer some vague clues
on how much nearer it might be to finally raising interest
rates.

The central bank is widely expected to cut its monthly asset
purchases to $25 billion from $35 billion, which would leave it
on course to shutter the program this fall.

Jul 17, 2014

Fed’s Bullard backs repo rate, cites bond bubble worry

By Michael Flaherty

OWENSBORO Ky. (Reuters) – St. Louis Federal Reserve President James Bullard threw his weight behind the reverse repo, calling it the Fed’s most important rate, and said he was worried about bond yields being “exceedingly low.”

Bullard also took a strong stance against views of Fed Chair Janet Yellen, saying that people should not expect an influx of workers to join the work force as the economy improves.

Jul 16, 2014

Yellen defends Fed independence, faces House Republican criticism

WASHINGTON, July 16 (Reuters) – Federal Reserve Chair Janet
Yellen defended the central bank’s independence on Wednesday at
a U.S. congressional hearing, handling tough questions from
Republican lawmakers who want to rein in the Fed’s authority.

Yellen’s prepared remarks on the economy and Fed policy were
identical to those from her appearance on Tuesday before the
Senate Banking Committee, where she stood by her view that an
accommodative monetary policy is still needed even though the
economy is recovering.

Jul 15, 2014

Fed’s Yellen says U.S. recovery incomplete, defends loose policy

WASHINGTON, (Reuters) – The U.S. economic recovery remains incomplete, with a still-ailing job market and stagnant wages justifying loose monetary policy for the foreseeable future, Federal Reserve Chair Janet Yellen told a Senate committee on Tuesday.

In a strong defense of the central bank’s current stance, Yellen said that early signs of a pickup in inflation aren’t enough for the Fed to accelerate its plans for raising interest rates, a move currently expected in the middle of next year.

Jul 7, 2014

House Republicans propose Fed reforms, set hearing

WASHINGTON (Reuters) – Republicans in the U.S. House of Representatives on Monday introduced a bill that would require the Federal Reserve to disclose more information, and set a hearing to discuss reform at the U.S. central bank.

The title of the hearing is “Legislation to Reform the Federal Reserve on Its 100-year Anniversary,” according to an announcement by the U.S. House Financial Services Committee. The hearing was set for Thursday, 10:00 am EST.

    • About Michael

      "In June 2009, Michael Flaherty became a Chief Correspondent for Reuters News, leading a team of journalists who cover investment banking, mergers & acquisitions, private equity and hedge funds, equity capital markets, natural resources and property across Asia. He arrived in Hong Kong in Feb. 2008 as Reuters' Asia Financial Services correspondent, covering the investment banks and M&A. Flaherty was hired by Reuters in New York in Dec. 2003. He was voted Reuters Journalist of the Year for his 2007 coverage of the U.S. private equity boom and bust. He started at Reuters with the consumer group covering office retailers ..."
      Joined Reuters:
      Dec. 1, 2003
      Awards:
      Peninsula Press Club, 2002, Reuters Journalist of the Year, 2007, M&A International, 2007
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