By Michael Flaherty
(Reuters) – The Federal Reserve should delete the word “patient” from its next policy statement, a top Fed official said on Tuesday, which would give the central bank more flexibility on when to raise interest rates.
St. Louis Fed President James Bullard, speaking on a panel of economists at the University of Delaware, also downplayed the Fed’s reference to international developments in its last policy statement, and called for breaking up big banks.
WASHINGTON, Jan 30 (Reuters) – The Federal Reserve plans to
propose a rule that applies minimum margin requirements to
certain forms of securities financing deals, in a move aimed at
reining in the shadow banking industry, a top Fed official said
Fed Governor Daniel Tarullo, the central bank’s chief
overseer of its bank regulation, said the Fed aims to take a
margin requirement rule passed last year by the Financial
Stability Board (FSB), a global group of regulators, and apply
it to the United States.
WASHINGTON, Jan 28 (Reuters) – The Federal Reserve on
Wednesday said the U.S. economy was expanding “at a solid pace”
as it largely looked through weakness overseas in a signal that
it remains on track to raise interest rates later this year.
The U.S. central bank repeated it would be “patient” in
deciding when to raise benchmark borrowing costs from zero,
where they have been stuck since late-2008.
WASHINGTON, (Reuters) – The Federal Reserve on Wednesday repeated that it will remain “patient” in deciding when to raise interest rates, and said the U.S. economy is on track despite turmoil in other markets around the world.
Concluding their first policy-setting meeting of the year,
Fed officials looked past the urgent moves made by other central
banks this month to boost their struggling economies and saw
continued economic expansion in the United States.
“The committee judges that it can be patient in beginning to normalize the stance of monetary policy,” the Fed’s policy statement said.
WASHINGTON (Reuters) – Republican Senator Rand Paul, a potential 2016 presidential candidate, on Wednesday re-introduced a bill that would expose the Federal Reserve’s monetary policy discussions and decisions to a congressional audit.
The Kentucky senator’s move to re-introduce the bill, along with 30 co-sponsors, comes as Republican lawmakers and some Democrats increase their efforts to rein in the U.S. central bank and make it more transparent.
WASHINGTON, Jan 28 (Reuters) – Republican Senator Rand Paul,
a potential 2016 presidential candidate, on Wednesday
re-introduced a bill that would expose the Federal Reserve’s
monetary policy discussions and decisions to a congressional
The Kentucky senator’s move to re-introduce the bill, along
with 30 co-sponsors, comes as Republican lawmakers and some
Democrats increase their efforts to rein in the U.S. central
bank and make it more transparent.
WASHINGTON, Jan 28 (Reuters) – The Federal Reserve is
expected to signal it remains on track to begin raising interest
rates later this year, as the central bank shows confidence that
low inflation and rising risks from abroad have yet to derail
the U.S. economic recovery.
The Fed’s first two-day policy meeting of the year concludes
on Wednesday, and policymakers will likely restate their
“patient” approach to raising rates, while also voicing faith
that the economy will continue improving.
WASHINGTON, Jan 26 (Reuters) – Federal Reserve nominee Allan
Landon has up to $40.1 million worth of personal assets,
according to government disclosure forms obtained by Reuters,
which would make him one of the wealthiest Fed governors if
confirmed to the post.
The White House put Landon’s name forward earlier this month
to fill one of the two empty Fed governor seats, touting the
former Bank of Hawaii chief executive officer’s
experience in the community banking industry.
WASHINGTON (Reuters) – Federal Reserve policymakers, already struggling to assure investors that they remain on track for a mid-year interest rate rise, will find the task has just become harder with their peers in Europe and elsewhere headed in the opposite direction.
The swelling ranks of central banks cutting rates and ramping up stimulus make it more difficult and riskier for the Fed to proceed with plans to end crisis-era policies, according to Fed analysts and former staffers.
WASHINGTON (Reuters) – The U.S. Federal Reserve said Friday it will establish a community advisory council of 15 citizens to meet regularly with central bank officials for a broad conversation on the state of the economy.
The move comes as the Fed is pressured by labor and low-income groups arguing for continued low interest rates. Fed Chair Janet Yellen and other Fed officials have met with these groups from late last year to hear their concerns, a departure from the practice of previous central bank leaders.