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 […]
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 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 […]