Chief Correspondent, Hong Kong
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Mar 19, 2015

Fed opens door wider for rate hike but downgrades economic outlook

WASHINGTON (Reuters) – The Federal Reserve on Wednesday moved a step closer to hiking rates for the first time since 2006, but downgraded its economic growth and inflation projections, signaling it is in no rush to push borrowing costs to more normal levels.

The U.S. central bank removed a reference to being “patient” on rates from its policy statement, opening the door wider for a hike in the next couple of months while sounding a cautious note on the health of the economic recovery.

Mar 18, 2015

Fed opens door for rate hike even as it downgrades economic outlook

WASHINGTON, March 18 (Reuters) – The Federal Reserve on
Wednesday moved a step closer to a much anticipated first rate
hike since 2006 by removing “patient” from its language,
although markets bet on a September hike after it downgraded the
expected pace of growth and inflation.

Stock markets rallied after the Fed statement, while the
U.S. 10-year Treasury yield dipped below 2 percent for the first
time since March 2 and the euro rose against the dollar on the
more dovish forecasts that appeared to argue against a June
move.

Mar 18, 2015

Fed opens door further for June interest rate hike

WASHINGTON (Reuters) – The Federal Reserve on Wednesday moved a step closer to a much anticipated first rate hike since 2006 by removing “patient” from its language, although markets bet on a September hike after it downgraded the expected pace of growth and inflation.

Stock markets rallied after the Fed statement, while the U.S. 10-year Treasury yield dipped below 2 percent for the first time since March 2 and the euro rose against the dollar on the more dovish forecasts that appeared to argue against a June move.

Mar 18, 2015

Fed set to ditch ‘patient’ rate vow as it eyes U.S., world growth

WASHINGTON (Reuters) – The Federal Reserve on Wednesday is expected to lay the groundwork for its first interest rate hike in nearly a decade, as it continues to weigh whether the U.S. recovery can hold up against collapsing oil prices and a soaring dollar.

The U.S. central bank’s latest policy meeting will conclude with certainty expected on one point: it will likely discard a pledge to remain “patient” before hiking rates, trimming one of the final verbal cues it has used through crisis, recession and recovery to describe its intent to keep rates near zero for a period of time.

Mar 13, 2015

New York Fed targeted by Senate Banking committee

WASHINGTON, March 13 (Reuters) – As the Senate Banking
committee pushes ahead with its agenda, one target emerging on
both sides of the political aisle is the New York Federal
Reserve Bank and its role in the financial industry.

The New York Fed has come under increased pressure from
lawmakers who say the bank is too cozy with Wall Street, a
charge that gained attention from bank examiner tapes leaked
last fall.

Mar 13, 2015

New York Fed in crosshairs of Senate Banking committee

WASHINGTON, March 12 (Reuters) – The Senate Banking
Committee is zeroing in on the New York Federal Reserve Bank in
its reform effort aimed at the U.S. central bank.

And while the New York Fed is a common ground in political
attacks on the U.S. central bank, Republicans and Democrats have
yet to agree on what changes to impose.

Mar 10, 2015

U.S. Fed’s Fisher calls for ‘prompt’ rate hike in final speech

HOUSTON/WASHINGTON, March 9 (Reuters) – The U.S. Federal
Reserve should promptly end its easy monetary policy and press
ahead with an interest rate hike, followed by a set of gradual
moves higher, the head of the Dallas Fed said on Monday in his
final speech as a policymaker.

Richard Fisher, president of the Dallas Federal Reserve
Bank, shrugged off stagnate wage growth, calling it a lagging
indicator, and said inflation will bounce back once energy
prices stabilize.

Mar 5, 2015

U.S. officials push to speed up sale of Fannie, Freddie assets

WASHINGTON (Reuters) – Two U.S. government officials on Thursday said the nation’s biggest mortgage finance companies need to speed up the sale of their non-performing loans.

Michael Stegman, the counselor to the Treasury’s secretary for housing finance policy, advocated for programmatic sales of non-performing loans at Fannie Mae and Freddie Mac and for a faster reduction in the most illiquid assets held by the two government-sponsored enterprises (GSEs).

Mar 4, 2015

Fed struggled with 2009 bailouts, bond-buying: transcripts

WASHINGTON/NEW YORK (Reuters) – The Federal Reserve struggled with the message being sent by its involvement in bank bailouts in 2009 and worried about its implementation of a bond-buying program aimed at easing the financial crisis, according to transcripts released by the U.S. central bank on Wednesday.

The transcripts from Fed meetings in 2009 reveal intense discussions on how to prop up the U.S. banking system and stimulate an economy reeling from the biggest financial shocks since the Great Depression.

Mar 4, 2015

U.S. Fed struggled with 2009 bailouts, bond-buying -transcripts

WASHINGTON/NEW YORK, March 4 (Reuters) – The Federal Reserve
struggled with the message being sent by its involvement in bank
bailouts in 2009 and worried about its implementation of a
bond-buying program aimed at easing the financial crisis,
according to transcripts released by the U.S. central bank on
Wednesday.

The transcripts from Fed meetings in 2009 reveal intense
discussions on how to prop up the U.S. banking system and
stimulate an economy reeling from the biggest financial shocks
since the Great Depression.

    • 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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