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Sep 20, 2013

Fed officials criticize, explain taper delay

NEW YORK (Reuters) – An outspoken Federal Reserve hawk warned on Friday that the U.S. central bank had harmed its credibility by delaying a highly anticipated reduction in monetary stimulus this week, but another official argued it had been the right thing to do.

Policymakers hit the speech circuit as financial markets continued to puzzle over Wednesday’s shock decision by the Fed not to scale back its massive bond buying program, after allowing the impression over the summer that it would do so.

Sep 20, 2013

Fed need not rush to taper while inflation is low -Bullard

NEW YORK, Sept 20 (Reuters) – Low readings on inflation
allow the U.S. Federal Reserve to be patient in deciding when to
scale back its pace of asset purchases, a senior Fed official
said on Friday, cautioning that he would not back action until
price pressures picked up.

“While I expect inflation to rise during the coming
quarters, I want to see evidence of such an increase before
endorsing less accommodative policy action by the FOMC,” James
Bullard, president of the St. Louis Federal Reserve, said.

Sep 20, 2013

U.S. Fed can be patient on tapering while inflation is low – Bullard

NEW YORK (Reuters) – Low readings on inflation mean that the U.S. Federal Reserve can be patient on deciding when to scale back its pace of asset purchases, a senior Fed official said on Friday, cautioning that he would not back action until price pressures picked up.

“While I expect inflation to rise during the coming quarters, I want to see evidence of such an increase before endorsing less accommodative policy action by the FOMC,” James Bullard, president of the St. Louis Federal Reserve, said.

Sep 20, 2013

Fed can be patient on tapering while inflation is low: Bullard

NEW YORK (Reuters) – Low readings on inflation mean that the U.S. Federal Reserve can be patient on deciding when to scale back its pace of asset purchases, a senior Fed official said on Friday, cautioning that he would not back action until price pressures picked up.

“While I expect inflation to rise during the coming quarters, I want to see evidence of such an increase before endorsing less accommodative policy action by the FOMC,” James Bullard, president of the St. Louis Federal Reserve, said.

Sep 19, 2013

Fed delay both delights, confounds investors

NEW YORK (Reuters) – Wall Street’s knee-jerk reaction to the Federal Reserve choosing to keep the pedal to the monetary policy metal was loud and clear on Wednesday: Buy Buy Buy!

That initial exuberance, however, masks a nagging worry and no shortage of confusion about the Fed’s reluctance to act after the central bank had positioned markets for a reduction in its $85 billion per month bond buying program. It left many investors in a fog about what comes next.

Sep 18, 2013

Analysis: Fed delay both delights, confounds investors

NEW YORK (Reuters) – Wall Street’s knee-jerk reaction to the Federal Reserve choosing to keep the pedal to the monetary policy metal was loud and clear on Wednesday: Buy Buy Buy!

That initial exuberance, however, masks a nagging worry and no shortage of confusion about the Fed’s reluctance to act after the central bank had positioned markets for a reduction in its $85 billion per month bond buying program. It left many investors in a fog about what comes next.

Sep 17, 2013

Foreigners buy U.S. bonds in July after June selloff

NEW YORK, Sept 17 (Reuters) – Foreign investors rediscovered
a taste for long-term U.S. securities in July as Japan and China
increased holdings of U.S. government bonds, which had suffered
a record outflow in June.

According to U.S. Treasury data released on Tuesday, foreign
holdings of long-term U.S. securities increased by $31.1 billion
in July after plunging by $67 billion the prior month.

Sep 11, 2013

Emerging-market investors get picky with Fed set to taper

NEW YORK (Reuters) – Investors bracing for the U.S. Federal Reserve to wind down its monetary stimulus have fled emerging markets in recent months, and while the impact of slow capital flows is likely to be felt for some time, some countries will fare much better than others.

The U.S. central bank is expected to begin trimming its massive $85 billion bond-buying program as early as next week. That will mean fewer Fed-created dollars sloshing around the global financial system.

Sep 11, 2013

Analysis: Emerging-market investors get picky with Fed set to taper

NEW YORK (Reuters) – Investors bracing for the U.S. Federal Reserve to wind down its monetary stimulus have fled emerging markets in recent months, and while the impact of slow capital flows is likely to be felt for some time, some countries will fare much better than others.

The U.S. central bank is expected to begin trimming its massive $85 billion bond-buying program as early as next week. That will mean fewer Fed-created dollars sloshing around the global financial system.

Aug 27, 2013

U.S. home prices rise but at slower pace, consumers optimistic

NEW YORK, Aug 27 (Reuters) – U.S. home prices rose in June,
extending a multi-month rebound, though the pace of gains
cooled, suggesting higher mortgage rates may end up slowing
momentum as the year winds down.

Separate data released on Tuesday showed consumer confidence
rebounded in August. Consumers were more optimistic about the
future even though their assessment of their current standing
fell.