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Jun 29, 2015

Greek drama not likely to waylay Federal Reserve

WASHINGTON (Reuters) – The fuse may be lit for a Greek exit from the euro zone but the fallout in the United States is expected to be modest and not enough to throw the Federal Reserve’s likely September rate hike off course, said former Fed officials and outside analysts watching the latest turn in Greece’s crisis.

Major U.S. stock indexes were lower on Monday by a little more than a percentage point. Yields on Treasury bonds fell and the dollar rose against the euro, indicating the typical push into U.S. securities in times of overseas stress – but not to such an extent it would waylay the Fed.

Jun 26, 2015

GE Capital, Senator Brown among April meetings for Fed Chair

WASHINGTON, June 26 (Reuters) – Federal Reserve Chair Janet
Yellen met with top executives from GE Capital prior to
the company’s move to shed financial assets, and she met with a
top Democrat who opposes legislation aimed at Fed reform, her
April calendar shows.

Yellen’s April calendar, released on Friday through a
freedom of information request, also included a gathering with
UBS Chairman Axel Weber and a meeting with European
Central Bank President Mario Draghi.

Jun 4, 2015

Fed’s Tarullo, BlackRock’s Fink cite bond market liquidity concerns

NEW YORK (Reuters) – Financial regulators are paying close attention to liquidity concerns surfacing across the U.S. bond market, a top Federal Reserve official said on Thursday.

Fed Governor Daniel Tarullo, the U.S. central bank’s top financial regulation official, said that while bond liquidity is a concern, the behavior of the market is not yet showing significant fluctuations in pricing.

Jun 3, 2015

Fed’s Bullard cites near-term economic concerns

LOUIS (Reuters) – A Federal Reserve official known as a policy hawk on Wednesday cited near-term concerns looming over the U.S. economy, adding his voice to a chorus of U.S. central bankers who are cautious about the economic outlook.

James Bullard, president of the St. Louis Federal Reserve, who has repeatedly said the U.S. central bank has been too patient in removing its accommodative monetary policy, struck a more cautious tone than he has previously. He pointed to weaker-than-expected consumer data such as retail sales as among worrying trends in the U.S. economy.

May 27, 2015

Fed’s Lacker says letting banks fail will restore market discipline

By Michael Flaherty

BATON ROUGE, La. (Reuters) – Policymakers must ensure that financial industry creditors do not expect government bailouts and must be willing to let firms fail in order to restore market discipline, a top Federal Reserve official said on Tuesday.

The remarks by Jeffrey Lacker, president of the Richmond Federal Reserve Bank, repeated much of what he has previously said about what regulators need to do to make the financial system safer. Lacker, a voting member this year on the Fed’s policy-setting committee, did not discuss monetary policy.

May 22, 2015

Fed on track to hike rates as economic headwinds wane: Yellen

WASHINGTON/PROVIDENCE (Reuters) – Federal Reserve Chair Janet Yellen on Friday said she expected the central bank to raise interest rates this year, as the U.S. economy was on course to bounce back from a sluggish first quarter and headwinds at home and abroad waned.

Yellen spoke amid growing concern at the Fed about possible market volatility once it begins to raise rates, and a desire to begin coaxing skeptical investors towards accepting the inevitable: ending a 6-1/2-year stretch of near-zero interest rates.

May 21, 2015

U.S. House panel issues subpoena to Fed over 2012 information leak

WASHINGTON, May 21 (Reuters) – The chairman of a U.S.
congressional committee on Thursday subpoenaed Federal Reserve
documents and communications related to a 2012 leak of
information related to monetary policy, ramping up his attack of
the central bank’s handling of the case.

Republican Jeb Hensarling of Texas, who chairs the U.S.
House of Representatives Financial Services Committee, said in a
release that the Fed failed to comply with document requests
from the panel related to market-sensitive information that was
leaked to a private financial newsletter.

May 21, 2015

Senate panel’s bank oversight bill gets no Democratic votes

WASHINGTON (Reuters) – The largest overhaul of U.S. financial industry reform since the 2008 crisis hit a roadblock on Thursday, as a regulation relief bill passed a Senate committee with zero Democrats in support.

The Senate Banking Committee cleared the Financial Regulatory Improvement Act of 2015 with all 12 Republicans voting in favor, and all 10 Democrats voting against.

May 20, 2015

Fed officials see June rate hike as unlikely: minutes

WASHINGTON (Reuters) – U.S. Federal Reserve officials believed it would be premature to raise interest rates in June and that a bump in inflation was being offset by a weaker labor market and softer data, according to minutes from the central bank’s April policy meeting.

“Many participants, however, thought it unlikely that the data available in June would provide sufficient confirmation that the conditions for raising (interest rates) had been satisfied …,” said the minutes, which were released on Wednesday.

May 19, 2015

U.S. Senate Democrats counter Shelby with own bank regulation bill

WASHINGTON, May 19 (Reuters) – Democrats on the Senate
Banking Committee on Tuesday released their own version of a
regulation relief bill, keeping the proposed changes tightly
focused on small banks and consumer protection.

The Democrats’ bill is a rebuke to committee Chairman
Richard Shelby, who officially released his wide-ranging
legislation on Monday after circulating a draft version early
last week.

    • 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
      Peninsula Press Club, 2002, Reuters Journalist of the Year, 2007, M&A International, 2007
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