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Jul 25, 2013

A failure to communicate: Fed ‘guidance’ fails early test

WASHINGTON (Reuters) – Watch what Federal Reserve officials do, not what they say. That was Wall Street’s reaction to the U.S. central bank’s hints that it could soon begin to wind down its bond-buying stimulus.

Rather than heed Fed Chairman Ben Bernanke’s reassurance that the end of quantitative easing would not presage an imminent rise in interest rates, the bond market pushed borrowing costs sharply higher, a sign the central bank’s reliance on “forward guidance” may not be working as intended.

Jul 11, 2013

Argentine soyoil price plummets due to EU biodiesel duties

BUENOS AIRES, July 11 (Reuters) – The export price of
Argentine soyoil has plummeted 21 percent so far this year, due
to new European biodiesel tariffs, putting one of the country’s
key industries at risk at a time of uncertainty in Latin
America’s third biggest economy.

With annual inflation running at 25 percent and investment
flows reduced by confidence-sucking foreign exchange and import
controls, the government needs all the farm-related tax revenue
it can get.

Jun 27, 2013

Fed’s Lockhart says stimulus pullback on track despite markets

MARIETTA, Georgia (Reuters) – The Federal Reserve can likely begin reducing the pace of its bond-buying stimulus this year, though market turbulence and low inflation bear watching, Atlanta Fed President Dennis Lockhart said on Thursday.

Global financial markets have been turbulent since Fed Chairman Ben Bernanke announced last week the central bank would likely start to dial down the pace of its asset-buying in coming months.

Jun 20, 2013

Bernanke’s stand-off with markets: Who will blink first?

WASHINGTON, June 20 (Reuters) – U.S. Federal Reserve
Chairman Ben Bernanke is playing a potentially dangerous game of
chicken with global financial markets sent reeling by his threat
to scale back the central bank’s huge stimulus program.

The Fed chief stood his ground at a news conference on
Wednesday, laying out in detail a plan to begin winding down the
central bank’s $85 billion a month in bond purchases later this
year. At the same time, he emphasized the Fed does not see such
a move as an outright end to its supportive policy nor would it
mark an imminent start to interest rate increases.

Jun 12, 2013

Yellen overwhelming favorite to replace Bernanke at Fed

WASHINGTON (Reuters) – Janet Yellen, the Federal Reserve’s powerful vice chair, is by far the most likely candidate to replace Ben Bernanke when his second term at the helm of the U.S. central bank ends early next year, according to a Reuters poll of economists.

The poll found that an overwhelming 40 of 44 economists said Yellen, the former president of the San Francisco Federal Reserve Bank, will take over for her boss in February 2014. Support for her nomination was strong but less decisive, with 23 of 38 economists backing Yellen’s bid for the top job.

Jun 12, 2013

Yellen overwhelming favorite to replace Bernanke at Fed: Reuters poll

WASHINGTON (Reuters) – Janet Yellen, the Federal Reserve’s powerful vice chair, is by far the most likely candidate to replace Ben Bernanke when his second term at the helm of the U.S. central bank ends early next year, according to a Reuters poll of economists.

The poll found that an overwhelming 40 of 44 economists said Yellen, the former president of the San Francisco Federal Reserve Bank, will take over for her boss in February 2014. Support for her nomination was strong but less decisive, with 23 of 38 economists backing Yellen’s bid for the top job.

Jun 12, 2013

Reuters poll: Janet Yellen overwhelming favourite to replace Bernanke at Fed

WASHINGTON (Reuters) – Janet Yellen, the Federal Reserve’s powerful vice chair, is by far the most likely candidate to replace Ben Bernanke when his second term at the helm of the U.S. central bank ends early next year, according to a Reuters poll of economists.

The poll found that an overwhelming 40 of 44 economists said Yellen, the former president of the San Francisco Federal Reserve Bank, will take over for her boss in February 2014. Support for her nomination was strong but less decisive, with 23 of 38 economists backing Yellen’s bid for the top job.

Jun 5, 2013

U.S. economy expanding, but still sluggishly: Fed Beige Book

WASHINGTON (Reuters) – The U.S. economy expanded at a “modest to moderate” pace since mid-April while hiring remained relatively subdued, according to a Federal Reserve report based on discussions with business contacts.

Consumer spending picked up and housing continued to show signs of strength, the Fed’s Beige Book showed. The previous report cited “moderate” growth, so the addition of the word “modest” may hint at some weakening.

Jun 5, 2013

Economy expanding, but still sluggishly: Fed Beige Book

WASHINGTON (Reuters) – The economy expanded at a “modest to moderate” pace since mid-April while hiring remained relatively subdued, according to a Federal Reserve report based on discussions with business contacts.

Consumer spending picked up and housing continued to show signs of strength, the Fed’s Beige Book showed. The previous report cited “moderate” growth, so the addition of the word “modest” may hint at some weakening.

May 21, 2013

Argentina says 2013/14 wheat area to expand 40 percent

BUENOS AIRES (Reuters) – High wheat prices, a government tax rebate plan and expected good weather will prompt Argentine farmers to expand planting of the grain by 40 percent this season compared with the 2012/13 crop year, Agriculture Secretary Lorenzo Basso said on Tuesday.

“The area will be close to 4.5 million hectares, for sure,” Basso told the Reuters Latin America Investment Summit.

    • About Pedro

      "Pedro da Costa has been covering economics and financial markets since 2001. He is currently based in Washington and focuses on the Federal Reserve and macroeconomic policy. Da Costa earned a Master's in international relations at the University of California San Diego and studied sociology and political science as an undergraduate at the University of Chicago and the London School of Economics. He grew up in Rio de Janeiro, Brazil."
      Joined Reuters:
      2001
      Languages:
      English, Portuguese, Spanish, French
      Awards:
      2011 Deadline Club Award from the Society of Professional Journalists' New York Chapter
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