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Sep 26, 2013

Fed needs better way to signal policy, officials say

, Sept 26 (Reuters) – The
Federal Reserve confused financial markets over scaling back its
bond buying, three top officials said on Thursday, with one
arguing the central bank should link tapering to drops in the
jobless rate and another calling for a broad remake of strategy.

Fed Board Governor Jeremy Stein said he would have been
comfortable with acting at the Sept. 17-18 meeting, and the
decision to keep buying bonds at an $85 billion monthly pace had
been, for him, a “close call”.

Sep 26, 2013

Easy central bank policy risks new crises – Rajan

FRANKFURT (Reuters) – Central banks risk sparking new crises by keeping their loose policy in place for too long, Reserve Bank of India’s (RBI) head said on Thursday.

Central bankers were “heroes” for restoring financial stability during the financial crisis, but it was not clear they could be called the same for restoring economic growth, Raghuram Rajan, the governor of RBI, said.

Sep 26, 2013

Easy central bank policy risks new crises – Reserve Bank of India’s Rajan

FRANKFURT, Sept 26 (Reuters) – Central banks risk sparking
new crises by keeping their loose policy in place for too long,
India’s central bank head said on Thursday.

Central bankers were “heroes” for restoring financial
stability during the financial crisis, but it was not clear they
could be called the same for restoring economic growth, Raghuram
Rajan, the governor of the Reserve Bank of India, said.

Sep 26, 2013

Fed officials admit communication problems over taper

FRANKFURT/STOCKHOLM (Reuters) – The Federal Reserve confused financial markets over scaling back bond buying, two senior officials said on Thursday, with one arguing the central bank should explicitly link tapering to drops in the jobless rate to be more predictable in the future.

Fed Board Governor Jeremy Stein said he would have been comfortable with acting at the September 17-18 meeting, and the decision to keep buying bonds at an $85 billion monthly pace had been, for him, a “close call”.

Sep 26, 2013

Fed’s Stein: need to be more predictable on bond taper

FRANKFURT (Reuters) – The Federal Reserve should make itself more predictable about scaling back its massive bond buying campaign, a top U.S. central banker said on Thursday, acknowledging that it had confused markets by not tapering at its meeting last week.

Fed Governor Jeremy Stein said he would have been comfortable starting to reduce asset purchases at the September 17-18 meeting, and that the decision to keep buying at an $85 billion monthly pace had been, for him, a “close call”.

Sep 21, 2013

Merkel concludes campaign trying to fend off Eurosceptic threat

BERLIN/FRANKFURT (Reuters) – Angela Merkel wrapped up her re-election campaign on Saturday with an appeal to defend Europe and her center-right coalition against Eurosceptics who threaten to break into the German parliament for the first time in Sunday’s election.

With a third of the 62 million voters still undecided and the small Alternative for Germany (AfD) tapping into impatience with euro zone bailouts, Europe’s most powerful leader risks spending her third term in an awkward right-left coalition.

Sep 21, 2013

Merkel concludes campaign trying to fend off Eurosceptic threat

BERLIN/FRANKFURT, Sept 21 (Reuters) – Angela Merkel wrapped
up her re-election campaign on Saturday with an appeal to defend
Europe and her centre-right coalition against Eurosceptics who
threaten to break into the German parliament for the first time
in Sunday’s election.

With a third of the 62 million voters still undecided and
the small Alternative for Germany (AfD) tapping into impatience
with euro zone bailouts, Europe’s most powerful leader risks
spending her third term in an awkward right-left coalition.

Sep 18, 2013

ECB advisers call for more long-term loans

FRANKFURT, Sept 18 (Reuters) – Another round of ultra-long
European Central Bank loans early next year would help boost
market confidence and lower money market rates, several members
of an ECB expert group said at a meeting earlier this month.

Markets have already begun to speculate on the chances of
another of the operations which saw the ECB flood banks with
more than 1 trillion euros in cheap three-year loans in late
2011 and early 2012.

Sep 17, 2013

Beer washes out German inflation angst

Germans, many say, have inflation angst in their DNA. But there is one exception to that. Beer.

Although prices at Oktoberfest have been inflation-beating for years, consumption keeps rising. Average price of the 1-liter (35 oz) stein of beer will be 9.66 euros ($ 12.85), up 3.6 percent from last year’s festivities, compared with German overall annual inflation of 1.5 percent.

Sep 17, 2013

German investor sentiment brightens on euro zone outlook

MANNHEIM, Germany (Reuters) – German analyst and investor sentiment jumped more than expected in September thanks to the improved outlook for the euro zone, a survey showed on Tuesday in welcome news for Chancellor Angela Merkel who is seeking a third term in an election on Sunday.

A monthly poll of economic sentiment rose to 49.6 from 42.0 in August, ZEW economic think tank said, reaching the highest level since April 2010 and surpassing the consensus forecast in a Reuters poll for a rise to 46.0.

    • About Sakari

      "I am part of the Reuters team covering the European Central Bank. Before moving to Frankfurt in early 2009, I was based in Helsinki, where I wrote about the Finnish economy and paper industry."
      Hometown:
      Helsinki
      Joined Reuters:
      2006
      Languages:
      Finnish, English, German, Swedish
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