, 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
It will be a tough one to avoid. Federal Reserve Chairman Ben Bernanke’s absence from Jackson Hole is just one in a series of strong hints he will step down at the end of his second term in January. So, it is only natural that a lot of the talk on the sidelines of this year’s conference will inevitably revolve around the issue of his replacement.
But there is another, potentially more important question that needs to be answered in the shadow of Wyoming’s majestic Grand Teton peaks: Why have top U.S. Fed officials, even dovish ones, become increasingly queasy about asset purchases despite falling inflation?
With all the back-and-forth in the Yellen versus Summers Fed chair showdown, it’s easy to forget that the two once played for the same team – the Clinton administration.
This incredible photo from the Reuters archive features many of the key players in U.S. economic policy over the last two decades, tracing the arch of the 1990s tech boom, the early 2000s housing surge and the financial crisis of 2008-2009. They include Fed Vice Chair Janet Yellen, then advisor to Clinton, and Larry Summers, then Deputy Treasury Secretary. Both are now seen as leading candidates to replace Ben Bernanke as Fed chair next year.
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,
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.
Lost in the bizarre Yellen vs. Summers tug-of-war into which the debate over the next Federal Reserve Chairman has devolved, is the notion that President Barack Obama is getting a second shot at revamping the U.S. central bank.
The perk of a two-term president, Obama will get to appoint another three, potentially four officials to the Fed’s influential seven-member board of governors in Washington. This may buy the president some political wiggle room when it comes to his pick for Fed chair, since he might be able to placate Republicans with one or two “concession” appointments. Every Fed governor gets a permanent voting seat on the policy-setting Federal Open Market Committee.
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.