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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.

Jul 3, 2014

Bullish US June jobs report prompts economists to eye earlier rate hike

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.

Jul 2, 2014

Yellen drives wedge between monetary policy, financial bubbles

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.

Jul 2, 2014

Monetary policy not best financial stability tool: Yellen

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.

Jun 26, 2014

Fed’s Lacker says U.S. jobless rate accurate gauge of labor slack

, 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
offset.

    • 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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