Fed’s Powell Reassures on Balance Sheet Runoff, Rate Hikes, Ultimate Control of Inflation – With Reservations
–Labor Supply Can Become an Issue Going Forward for Inflation–Whether There are Three Rate Hikes This Year Depends on Data By Denny Gulino WASHINGTON (MaceNews) – Without getting too specific, Federal Reserve Chair Jay Powell Tuesday pledged to quickly leave behind the era of emergency measures, fighting inflation while aware its current causes are largely […]
KC Fed’s George Prefers Shrinking Balance Sheet ‘Earlier Rather Than Later’
– ‘Time Has Come’ To Transition to More ‘Normal’ Monetary Stance – Urges FOMC Should ‘Take First Step’ to Tighten Monetary Policy – FOMC Could Raise Rates First, but Must Start to Shrink Balance Sheet By Steven K. Beckner (MaceNews) – Kansas City Federal Reserve Bank President Esther George asserted the need Tuesday for a […]
<strong>Powell Vows to Keep ‘Elevated’ Inflation From Getting ‘Entrenched;’ Doesn’t Say How</strong>
By Steven K. Beckner (MaceNews) – Federal Reserve Chair Jerome Powell pledges the Fed will act to prevent already “elevated” inflation from becoming further “entrenched” in congressional testimony prepared for delivery Tuesday morning. However, the Fed chief does not elaborate on how precisely he and his fellow policymakers will proceed to combat wage-price pressures in […]
FOMC Minutes Reflect Surprising Amount of Discussion Re More Aggressive Tightening – But No Conclusions
WASHINGTON (MaceNews) – The latest minutes of the Federal Open Market Committee released Wednesday afternoon surprised the markets with the amount of discussion about potentially more aggressive than expected tightening moves, despite the lack of any conclusions. Not only did “many participants” judge that the appropriate pace of balance sheet runoff would likely be faster […]
Fed’s Waller Urges March Funds Rate Liftoff, Followed by Balance Sheet Shrinking
By Steven K. Beckner (MaceNews) – Federal Reserve Governor Christopher Waller Friday said the Fed should start raising short-term interest rates “shortly” after it finishes buying bonds in March – perhaps immediately thereafter. What’s more, Waller advocated starting to shrink the Fed’s bloated balance sheet soon after it starts raising the federal funds rate, which […]
Analysis: Fed Ponders What Puts Out This Peculiar Inflation Fire
–Overheating or Super Squeezing? By Denny Gulino WASHINGTON (MaceNews) – Federal Reserve Chair Jay Powell Wednesday reassured his press conference viewers the central bank has the tools it needs to make sure aggressive inflation doesn’t last too long, reinforcing the narrative this inflation episode will meet its match. But what if the seeds of deflation […]
FOMC Doubles Taper to End Bond Buying in March as Inflation Forces Hawkish Tilt
—Three 2022 Rate Hikes Now Projected By FOMC Participants –Powell Hints At Quick Start To Funds Rate Liftoff After Taper Ends By Steven K. Beckner (MaceNews) – Federal Reserve policymakers moved dramatically, though not unexpectedly, Wednesday to adopt a more aggressive stance against inflation. The FOMC said it anticipates “similar reductions” in subsequent months, although […]
TEXT: FOMC Statement: Doubles Pace of Taper
WASHINGTON (MaceNews) – The Federal Open Market Committee Wednesday met expectations for a doubling of the pace of tapering and participants increased their calls for three rate hikes next year. The text of the policy statement follows: The Federal Reserve is committed to using its full range of tools to support the U.S. economy in […]
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 […]