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Aug 24, 2013

Emerging countries must be able to control capital flows: study

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.

Aug 23, 2013

Fed should focus on mortgage buys, sell Treasuries: study

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, 2013

Central banks must consider spillover effects: Mexico’s Carstens

, 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
counterparts.

Aug 13, 2013

Fed could begin reducing bond buys in Sept -Lockhart

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,
Lockhart said.

Aug 13, 2013

Too early to lay out full exit from asset buys: Fed’s Lockhart

ATLANTA (Reuters) – U.S. economic performance remains too mixed for Federal Reserve policymakers to lay out a detailed path for reducing and eventually halting their asset-purchase stimulus plan at their September meeting, a top Fed official said on Tuesday.

Still, Atlanta Fed President Dennis Lockhart did not rule out some kind of decrease next month in the $85 billion monthly pace of bond buys currently under way. He simply suggested this would be a decision to be adjusted over time, not the beginning of a pre-ordained pullback.

Aug 5, 2013

Shrunken workforce gives Fed added policy headroom

WASHINGTON (Reuters) – So many workers have left the job market in recent years that the decline in the official unemployment rate to 7.4 percent last month may understate the extent of weakness in employment prospects.

This gives Federal Reserve officials considerable room to keep interest rates near zero, potentially well beyond current expectations of rate increases beginning in 2015.

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 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.

    • 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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