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 […]
FOMC Set To Taper In November Amid Mounting Inflation Worries
– Pace of Tapering Adjustable; Funds Rate Liftoff Timing Uncertain By Steven K. Beckner (MaceNews) – The fateful moment is nearly upon us – when the Federal Reserve at last starts trimming the aggressive bond buying it’s been doing to support a pandemic-weakened but rapidly recovering economy. Having prepared financial markets as much as it […]
Fed’s Beige Book Sees ‘Significantly Elevated Prices’
WASHINGTON (MaceNews) – The Federal Reserve’s survey of economic conditions coast to coast Wednesday found “significantly elevated prices” and some regional Fed districts in which growth slowed, hampered by labor shortages, supply disruptions and, of course, the Delta variant. Auto sales declined and some districts “noted increased uncertainty and more cautious optimism than in previous […]
BofA Global Research Fund Manager Survey: Increasingly Negative World Growth Outlook Prompt Former Bulls To Retreat in October
By Vicki Schmelzer — Record Underweight in Bonds On Rate Hike Jitters NEW YORK (MaceNews) – World growth expectations fell more markedly in October, prompting formerly bullish global investors to retreat, according to the findings of BofA Global Research’s monthly fund manager survey, released Tuesday. Growth expectations were weighed by fears of higher interest rates, […]
NY Fed’s Williams Opposes Raising FOMC Inflation Target From 2%
–Stresses Need To Anchor Inflation Expectations at 2% By Steven K. Beckner (MaceNews) – New York Federal Reserve Bank President John Williams defended the Fed’s 2% average inflation target Friday, while emphasizing the need to solidify expectations around that rate. Williams, vice chairman of the Fed’s policymaking Federal Open Market Committee, acknowledged that the real […]
<strong>Minutes Show FOMC Preparing Taper Amid Fear of Upside Inflation Risks</strong>
Taper Could Start Soon as Mid-November, End Mid-2022, Assuming More Progress FOMC Liked Staff Plan to Cut MBS $5 Billion, Treasuries $10 Billion Per Month By Steven K. Beckner (MaceNews) – Federal Reserve officials expressed heightened concern about inflation along with greater satisfaction with labor market improvements at the Sept. 21-22 meeting of the Fed’s […]