WASHINGTON, Feb 24 (Reuters) – The Federal Reserve is
preparing to consider interest rate hikes “on a meeting by
meeting basis,” Fed Chair Janet Yellen told a congressional
committee on Tuesday in a subtle change of emphasis in how the
Fed has been speaking about its plans for the first interest
rate increase since 2006.
In prepared remarks to the Senate Banking Committee Yellen
described how the Fed’s rate-setting policy committee will
likely proceed in coming months – an effort to increase the
Fed’s flexibility and mute any potential market reaction as the
central bank approaches its “liftoff” date.
WASHINGTON (Reuters) – Federal Reserve Chair Janet Yellen is expected to face pointed questions this week from U.S. lawmakers aimed at revealing details about the Fed’s timing on interest rate hikes, as well as fresh scrutiny about transparency at the central bank.
Yellen will likely give away little in her prepared testimony for the Senate Banking Committee on Tuesday, and the House Financial Services Committee on Wednesday. But her answers to lawmakers’ questions will be parsed for insight into the her thinking about issues like persistently weak inflation, stagnant wage growth and whether she still feels the nation’s falling unemployment rate disguises lingering ills in the labor market.
WASHINGTON (Reuters) – The Senate Banking committee is expected to hold a hearing next week on reforms aimed at the Federal Reserve, a Senate aide said on Monday, as lawmakers push for more transparency at the U.S. central bank.
The hearing will be scheduled for the afternoon of March 3, the aide said. Gathering economists and other central banking experts in front of the Senate Banking, Housing and Urban Affairs committee to discuss Fed reforms is the fulfillment of a promise made by the panel’s new chair, Richard Shelby.
WASHINGTON, Feb 19 (Reuters) – Freddie Mac saw
$3.4 billion in quarterly derivative losses due to declining
interest rates, the government-controlled mortgage finance
company said on Thursday.
The losses caused a $1.9 billion drop in fourth-quarter
earnings to $227 million, the company said, its lowest profit in
that quarter since 2001.
WASHINGTON (Reuters) – Federal Reserve policymakers expressed concern last month that raising interest rates too soon could pour cold water on the U.S. economic recovery, and fretted over the impact of dropping “patient” from the central bank’s rate guidance.
The minutes from the Fed’s Jan. 27-28 policy-setting meeting, released on Wednesday, show officials grappling to square solid U.S. economic growth with the weakness in international markets as well as worrying about falling inflation expectations in the United States.
WASHINGTON, Feb 11 (Reuters) – Democrats on the Senate
Banking committee on Wednesday voiced opposition to a bill that
would expose the U.S. Federal Reserve to a full government
The support from Democrats shows they are starting to form a
united front against Republican-led efforts to
WASHINGTON, Feb 10 (Reuters) – Republican lawmakers in the
U.S. House of Representatives and Senate are discussing a joint
effort to repeal a key section of the landmark Wall Street
reform law, seeking to limit the U.S. government’s role in
supporting financial institutions on the brink of collapse,
according to people familiar with the matter.
Efforts by Republicans to revamp the 2010 Dodd-Frank Act,
including its handling of failing banks, went nowhere in the
past because the Democrat-controlled Senate defended the law.
By Michael Flaherty
RALEIGH, N.C. (Reuters) – The Federal Reserve should raise interest rates in June, a top Fed official said on Tuesday, saying the U.S. economy is strengthening and that inflation will move back to the central bank’s target.
“At this point, I think June looks like the attractive option” to raise interest rates, Richmond Fed President Jeffrey Lacker told reporters here. “The data could change that, but it would have to be surprising data for me.”
WASHINGTON (Reuters) – The Federal Reserve could be hamstrung in its response to any future crisis if Congress approves legislation deepening its oversight of the central bank, Fed governor Jerome Powell said on Monday.
In a strong defense of the central bank’s continued independence, Powell told a Catholic University law school audience that various proposals being debated in Congress carried more risk for the economy than proponents realize.
WASHINGTON (Reuters) – The Federal Reserve should likely raise interest rates in the first half of this year to account for an economic recovery that continues to build momentum, Cleveland Federal Reserve President Loretta Mester said on Wednesday.
Mester said she regards the U.S. recovery as deeply rooted, with labor markets steadily improving, households and businesses freer from the heavy debt loads that constrained them, and low oil prices providing a “tailwind” to boost consumer spending.