WASHINGTON (Reuters) – The Federal Reserve on Wednesday pressed ahead with its plan to wind down its bond-buying stimulus and upgraded its assessment of the U.S. economy, while reaffirming it is in no rush to raise interest rates.
The central bank cut its monthly asset purchases to $25 billion from $35 billion, leaving it on course to shutter the program this fall.
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.
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
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.
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.
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.
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.
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.
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.
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.
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.