GREENVILLE, South Carolina (Reuters) – The U.S. Federal Reserve can begin winding down its bond-buying stimulus later this year as the economy improves, but will likely need to keep official interest rates near zero for another two years, Chicago Fed President Charles Evans said on Friday.
While Evans did not specify an exact month for the start of a reduction in the Fed’s purchases of mortgage and Treasury bonds, his timeline appears to make him reticent about making such a move in September, as most investors now expect.
, Sept 6 (Reuters) – The U.S. Federal
Reserve can begin winding down its bond-buying stimulus later
this year as the economy improves, but will likely need to keep
official interest rates near zero for another two years, Chicago
Fed President Charles Evans said on Friday.
While Evans did not specify an exact month for the start of
a reduction in the Fed’s purchases of mortgage and Treasury
bonds, his timeline appears to make him reticent about making
such a move in September, as most investors now expect.
WASHINGTON (Reuters) – The U.S. economy expanded at a “modest to moderate” pace in most of the country between early July and late August, according to a Federal Reserve report that was just strong enough to reinforce the prospect of a pullback in monetary stimulus.
With most Fed officials seemingly bent on moving away from controversial asset purchases aimed at keeping long-term rates down, investors are expecting the Fed to begin reducing the pace of its $85 billion monthly bond buys at policymakers’ next meeting later this month.
NEWPORT NEWS, Virginia (Reuters) – The U.S. Federal Reserve should begin reducing purchases of mortgage bonds, part of its monetary stimulus program, at its meeting next month, Richmond Fed President Jeffrey Lacker said on Thursday.
The outlook for the U.S. labor market had improved substantially since the Fed launched its most recent bond-buying stimulus last year, meeting the central bank’s stated precondition for a retreat from such purchases, Lacker said.
WASHINGTON (Reuters) – Lawrence Summers may be a poster-child for the lucrative revolving door between Wall Street and Washington. But Federal Reserve Vice Chair Janet Yellen, his chief opponent in the tight race to replace Ben Bernanke at the helm of the U.S. central bank, is not exactly struggling financially.
Yellen, a former university professor who until recently was seen as a favorite to take the top spot at the Fed when Bernanke’s second term ends early next year, holds assets worth between $3.8 million and $11.1 million, according to 2012 disclosure forms released on Tuesday. Including the holdings of her husband, a nobel-prize-winning economist, she owns between $4.8 million and $13.2 million worth of assets.
, Aug 25 (Reuters) – The recent selloff in
emerging markets is a classic case of being careful what you
When the Federal Reserve was ramping up its asset purchases
to support a flagging U.S. economy, many officials overseas
criticized the United States for putting undue upward pressure
on their currencies. Most memorably, Brazilian Finance Minister
Guido Mantega suggested rich countries were engaged in a
“currency war” or a race to devalue to gain a trade advantage.
JACKSON HOLE, Wyoming (Reuters) – Emerging market nations can be adversely affected by large swings in investment and, therefore, must develop tools to control credit flows or risk relinquishing any independent monetary policy, a study shows.
These findings were presented at the Kansas City Federal Reserve’s monetary policy symposium at Jackson Hole, which highlighted the global impact of the unconventional monetary policy of the United States and other major central banks.
JACKSON HOLE, Wyoming (Reuters) – The Federal Reserve should concentrate its unconventional monetary stimulus on mortgage asset purchases, according to a new study released on Friday, ditching Treasury bond buys which the authors say have not had much of an effect.
Presented at the Kansas City Fed’s annual Jackson Hole conference, the paper argues rather controversially that the central bank should begin its exit strategy by selling Treasuries, something that is hard to conceive given the recent speedy selloff in government bonds.
, Aug 23 (Reuters) – Central banks in rich
countries cannot ignore the international effects of their
policies, and conducting monetary policy in a vacuum could spark
another financial crisis, Mexico Central Bank Governor Agustin
Carstens said on Friday.
Speaking at the Kansas City Federal Reserve’s annual Jackson
Hole conference, Carstens warned about the dangers of a
mismanaged exit from unconventional monetary policies in
countries like the United States for their developing world
ATLANTA, Aug 13 (Reuters) – The Federal Reserve could begin
reducing its bond-buying stimulus as early as its September
meeting despite inflation being below target, Atlanta Fed
President Dennis Lockhart said on Tuesday.
U.S. economic performance remains too mixed for Federal
Reserve policymakers to lay out a detailed path for reducing and
eventually halting their asset-purchasing program next month,