Analysis: Inflation-Wary FOMC Seems Headed Toward a Quicker Pace of Tapering, Rate Hikes
– Wage-Price Trends Have Dramatically Changed the Fed’s Policy Calculus By Steven K. Beckner (MaceNews) – Who would have imagined just a short time ago that the Federal Reserve would not only be accelerating reductions of asset purchases before year’s end, but signaling an intention to raise short-term interest rates sooner and more rapidly than […]
FOMC Minutes: No Wage-Price Spiral But Ready to Accelerate Taper if Inflation More Persistent, Aggressive
WASHINGTON (MaceNews) – The minutes of the Nov 2-3 Federal Open Market Committee meeting released Wednesday repeated familiar themes about pandemic-caused inflation factors, labor supply issues and so far, the absence of a wage-price spiral. Members advocated contninued vigilance about the intensity of price pressures. Fears that inflation expectations were being elevated beyond previous ranges […]
Text of Joint Announcement by Regulators on Bank Handling of Crypto Assets
WASHINGTON (MaceNews) – The following is the text of the joint announcement of the Federal Reserve, FDIC and OCC on future regulatory work on bank handling of crypto assets: Board of Governors of the Federal Reserve SystemFederal Deposit Insurance CorporationOffice of the Comptroller of the Currency November 23, 2021 Joint Statement on Crypto-Asset Policy Sprint […]
Text of President Biden’s Announcement of Intent to Nominate Powell to Again be Fed Chair, and Brainard as Vice Chair
WASHIINGTON (MaceNews) – The following is the text of Monday morning’s announcement by President Biden that he intends to nominate Jay Powell for another term as Federal Reserve chair, with Lael Brainard vice chair. Both intended nominees will appear with the president at 1:20 p.m. ET for remarks: Today, President Biden announced his intent to […]
Fed’s Waller Favors ‘Faster’ Pace of ‘Tapering,’ Earlier ‘Liftoff’ Given Inflation
— If Speed Tapering in January; Could Raise Funds rate in Second Quarter By Steven K. Beckner (MaceNews) – Federal Reserve Governor Christopher Waller said Friday he is leaning toward a “faster” pace of “tapering” Fed asset purchases, and he suggested he would also favor a relatively early “liftoff” of the federal funds rate from […]
Fed’s Clarida: FOMC Should Consider Faster Pace of Tapering at December Meeting
By Steven K. Beckner (MaceNews) – Federal Reserve Vice Chairman Richard Clarida said Friday that he would be open to consider accelerating the pace at which the Fed reduces its bond buying. Clarida, responding to questions after speaking to a Federal Reserve Bank of San Francisco Asia Economic Policy Conference, pointed to a combination of […]
San Fran Fed’s Daly Calls For ‘Patience’ Regarding Monetary Tightening
–Wants More ‘Clarity” Before Adjusting Taper Pace, Funds Rate –Moved Liftoff Date From 2024 to 2023; Not Sure About 2022 Given Delta –Data Too ‘Cloudy’; Tightening Policy Further Could Be ‘Costly,’’Mistake’ By Steven K. Beckner (MaceNews) – San Francisco Federal Reserve Bank President Mary Daly called Tuesday for “patience” and urged the Fed to await […]
KC Fed’s George Questions Whether Fed Should Be ‘Patient” About Inflation
— “The argument for patience in the face of these inflation pressures has diminished.” By Steven K. Beckner(MaceNews) – — “The argument for patience in the face of these inflation pressures has diminished.” (MaceNews) – Kansas City Federal Reserve Bank President Esther George appeared to challenge Fed Chairman Jerome Powell’s recently enunciated premise that the […]
FOMC: Tapering of Bond Buying to Start Later This Month, Continue in December
– Fed To Cut Treasury Securities By $10 Billion; MBS $5 Billion Per Month – Powell: Tapering Apt to End Mid-2022, but Adjustable Depending on Conditions – FOMC Still ‘Expects’ Inflation To Be ‘Transitory,’ but Powell More Worried – Powell Says ‘Won’t Hesitate’ To Raise Rates to Counter Inflation if Needed By Steven K. Beckner […]
FOMC: Tapering to Begin This Month at the Expected Pace
WASHINGTON (MaceNews) – The Federal Open Market Committee Wednesday fulfilled expectations that tapering will get underway, starting the process this month while making no reference to the timeline of eventual liftoff other than the usual goals of maximum employment and 2% inflation. The policy announcement follows: With progress on vaccinations and strong policy support, indicators […]