FRANKFURT/NEW YORK (Reuters) – Two senior Federal Reserve officials on Tuesday played down chances that the U.S. central bank would signal a readiness to taper bond buying at its meeting next month, dampening speculation the Fed might soon dial back its ultra-easy policy.

New York Federal Reserve Bank President William Dudley and St. Louis Fed chief James Bullard, both of whom will vote at the June 18-19 meeting, made clear further economic progress was needed before they would support curtailing bond purchases.

FRANKFURT (Reuters) – A top U.S. Federal Reserve official urged the European Central Bank on Tuesday to consider employing a U.S.-style quantitative easing programme to counter slowing inflation and recession in the euro zone.

The ECB has engaged in bond purchases in the past but has always withdrawn an equivalent amount of money from markets to ensure its interventions are neutral for the money supply, fearful of stoking inflationary pressures.

FRANKFURT, May 21 (Reuters) – Massive asset purchases are
the closest thing to normal monetary policy once interest rates
get near zero, a senior U.S. Federal Reserve official said on
Tuesday, recommending that the European Central Bank weigh such
action if inflation falls further.

St. Louis Federal Reserve Bank President James Bullard, a
voting member of the Fed’s policy-setting committee this year,
also said the U.S. central bank should keep buying bonds, while
adjusting the pace of purchases up or down, according to
incoming economic data.

FRANKFURT (Reuters) – The European Central Bank is closer to lowering interest rates than at any time since it last cut them in July 2012 and is likely to shave a quarter-point off at its policy meeting next week.

Senior sources involved in the deliberations say momentum is building for action to help a euro zone economy which has slipped back into recession, a move that some policymakers wanted to take earlier this year.

FRANKFURT (Reuters) – The European Central Bank is closer to lowering interest rates than at any time since it last cut them in July 2012 and is likely to shave a quarter-point off at its policy meeting next week.

Senior sources involved in the deliberations say momentum is building for action to help a euro zone economy which has slipped back into recession, a move that some policymakers wanted to take earlier this year.

TOKYO/FRANKFURT (Reuters) – It is your first day as the new U.S. Federal Reserve chief: the main interest rate is 4.50 percent, the economy is overheating and the task is to keep inflation and unemployment low.

Once in a while there is a curve ball — an oil crisis or a dollar spike — and if you move rates up or down appropriately you will be reappointed.

TOKYO/FRANKFURT, April 18 (Reuters) – It is your first day
as the new U.S. Federal Reserve chief: the main interest rate is
4.50 percent, the economy is overheating and the task is to keep
inflation and unemployment low.

Once in a while there is a curve ball — an oil crisis or a
dollar spike — and if you move rates up or down appropriately
you will be reappointed.

FRANKFURT (Reuters) – Modeled on the hawkish, inflation-fighting Bundesbank, the European Central Bank is used to focusing on containing price rises rather than worrying about them increasing too slowly – or even falling.

But now ECB policymakers are keenly aware that inflation in their 17-country euro zone risks slipping further below their target of just under 2 percent, even if they insist deflation is not a threat.

FRANKFURT (Reuters) – The European Central Bank this week will try to calm investors worried about the euro zone crisis flaring up again, pledging to keep the banking system lubricated after Cyprus’s brush with financial meltdown.

The central bank is widely expected to hold off an interest rate cut this month, instead waiting to see if a grim economic picture in the euro zone brightens before using its limited remaining margin for maneuver to lower borrowing costs further.

FRANKFURT (Reuters) – Lending to euro zone businesses rose on the month in February for the first time since July, showing patchy and fragile gains that offer a glimmer of hope for the euro zone’s crisis-hit economy.

Banks granted non-financial firms 2 billion euros (1.69 billion pounds) more of loans in February than in the previous month, European Central Bank data adjusted for sales and securitisations showed on Thursday.