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.
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.
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.
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.
WASHINGTON, July 3 (Reuters) – A bullish U.S. jobs report
prompted several economists to toy with the idea of bringing
forward their forecasts for a Federal Reserve interest rate
hike, although most held firm, preferring to wait for more data.
Interest rate futures showed traders ramping up bets
slightly that the U.S. central bank will lift rates in June of
next year. The probability of a June rate hike implied by rate
futures rose to 58 percent from 51 percent before the data.
WASHINGTON (Reuters) – Monetary policy faces “significant limitations” as a tool to counter financial stability risks, Federal Reserve Chair Janet Yellen said on Wednesday, adding that heading off the U.S. housing bubble with higher interest rates would have caused major economic damage.Weighing in on a global debate, Yellen reiterated her view that regulation – not rate policy – needs to play the lead role in combating excessive financial risk-taking.
“The potential cost … is likely to be too great to give financial stability risks a central role in monetary policy discussions,” Yellen said at an event sponsored by the International Monetary Fund.
WASHINGTON (Reuters) – Monetary policy faces “significant limitations” as a tool to address financial stability risks, and would have caused major economic damage if it had been used to head off the U.S. housing bubble, Federal Reserve Chair Janet Yellen said on Wednesday. Weighing in a global central banking debate, Yellen reiterated her view that regulatory policy needs to play the lead role in combating excessive financial risk-taking.
She said, however, that an increased focus on financial stability in monetary policy deliberations was appropriate, but that central banks should only shift interest rates to combat risks to stability in rare circumstances.
, June 26 (Reuters) – The U.S. jobless rate is
likely giving an accurate read on the amount of slack in the
labor market, with an unusually high level of long-term
unemployment reflecting those who lack skills needed to find
work, a top Federal Reserve official said on Thursday.
Richmond Federal Reserve Bank President Jeffrey Lacker told
a group of local business leaders a drop in labor force
participation and historically high long-term unemployment
largely reflected structural trends that monetary policy cannot
WASHINGTON (Reuters) – Stanley Fischer’s nomination to be vice chairman of the U.S. Federal Reserve advanced in the Senate on Tuesday, along with two other nominees to the U.S. central bank, setting the table for their expected confirmation later this week.
The former governor of the Bank of Israel, who was separately confirmed to a Fed board seat last month, is widely expected to win approval for a concurrent four-year term as the Fed’s No. 2 when the Senate votes on Thursday.
WASHINGTON (Reuters) – The Federal Reserve should let its balance sheet begin shrinking before raising interest rates, Kansas City Federal Reserve President Esther George said on Tuesday in remarks that highlight divisions over how to wind down years of crisis response.
The Fed is on pace to end monthly asset purchases by October or December. In a speech prepared for delivery in Colorado, George said that once that happens, and before the Fed begins raising interest rates, the central bank should also stop reinvesting the proceeds as its $4 trillion in holdings of U.S. Treasury and other securities mature.