Week of November 6, 2011 thru November 12, 2011

Fed William's Q&A:Data Deluge Cld Make Spotting Sys Risk Hard

WASHINGTON (MNI) - The Federal Reserve, along with other regulators, is amassing huge amounts of information to bolster its enhanced macroprudential supervisory role, but there is a real concern that an information overload could impede its ability to spot developing systemic risks, San Francisco Federal Reserve President John Williams said Friday.

Speaking during a panel discussion at the IMF's annual Jacques Polak research conference, Williams noted that the Fed is collecting a lot of data as it looks to forestall the next crisis, but he worries how the central bank will analyze all the data.

"How do we 'slice and dice' it?" and pinpoint where the risk is, he asked.

Federal Reserve State of Play - By Steve Beckner - 11 Nov'11

Although the Federal Open Market Committee left monetary policy on hold, Federal Reserve officials have been making it abundantly clear that further easing is quite possible.

White House Text: Obama Urges Super Committee To Reach A Deal

WASHINGTON (MNI) - The following is the text of a statement by the White House Friday:

Today, the President reached out separately by phone to Senator Murray and Representative Hensarling. With the Joint Select Committee's deadline to report approaching, the President wanted to hear from the bipartisan leadership of the committee on the status of their discussions.

The President urged them to encourage the Committee to reach a deal. The President reminded them that he put forth a very detailed plan for deficit reduction to the Committee, and reiterated that any approach must be balanced, and will require tough choices by both sides, including looking at revenues and entitlements.

Fed's Yellen Q&A: Important To Overlap Mon Pol, Fin Stability

CHICAGO (MNI) - Federal Reserve Board of Governors Vice Chair Janet Yellen Friday said that "it is important to have overlap between those responsible for monetary policy and those responsible for financial stability."

In addition, she said "it is important for those making monetary policy to keep in mind that very low levels of interest rates can potentially increase leverage in the financial system." She was answering questions from the audience after a speech at the Chicago Federal Reserve Bank.

Taking questions from the audience at a Chicago Federal Reserve Bank conference on international banking, Yellen noted that while FSOC (Financial Stability Oversight Council) is a new organization, "getting around the table, from different persp

Fed's Yellen: Rising EU Debt Sprds Show Need'Forceful Action'

(MNI) - Warning of potential damage to the U.S. financial system, Federal Reserve Vice Chairman Janet Yellen called Friday for "forceful action" to resolve the European debt crisis.

Although U.S. banks' direct exposure to European debtor nations is "manageable," they are more vulnerable to European banks, and that vulnerability could worsen if the debt crisis intensifies Yellen told a conference in Chicago co-sponsored by the Federal Reserve Bank of Chicago and the European Central Bank.

So European authorities need to complete a more detailed bailout plan and speedily implement it, she said in remarks prepared for delivery to the conference.

Fed Williams: Mon Pol Will Need To Be More Active In Fin Stab

--Not Convinced Fin Reg Reforms Enough To Forestall Another Crisis

WASHINGTON (MNI) - While micro and macroprudential policies are the appropriate "first lines of defense" against financial instability, the concern that these defenses could be breached means monetary policymakers will need to be more involved in forestalling the next crisis, San Francisco Federal Reserve President John Williams said Friday.

In prepared remarks during a panel discussion monetary and macroprudential policies hosted by the International Monetary Fund, Williams warned that "despite serious reforms to strengthen our financial system, significant risk remains that another asset bubble could develop.

ECB Stark: ECB Can Never Become Lender of Last Resort

FRANKFURT (MNI) - The European Central Bank will never become a lender of last resort but stands ready to further ease interest rates should the crisis spark deflationary risks, ECB Executive Board member Juergen Stark said.

In an interview with Swiss newspaper Neue Zuercher Zeitung due for publication on Saturday, Stark said that "the ECB will never become a lender of last resort." He added that the ECB is legally not permitted and will not monetize public debt.

Asked about the risk that a default in Italy might push the euro zone into recession, Stark said: "I don't want to speculate about such a scenario.

EMU Data: MNI Survey Of Econ Data Forecasts November 14 to 18

GDP - Q3 Industrial Production %q/q %y/y %m/m Sept %y/y

Median Forecast 0.2 1.4 -2.4 3.1 High forecast 0.3 1.6 1.3 4.2 Low forecast 0.1 1.4 -3.4 2.3 Previous period 0.2 1.6 1.2 5.3 - Number of responses 12 8 8 4

4Cast 0.2 1.4 N/A N/A Action Economics 0.1 N/A -3.0 N/A Barclays 0.2 N/A -2.8 N/A BNP Paribas 0.3 1.5 -2.5 2.8 Capital E

Germany Data: MNI Survey Of Econ Data Forecasts Nov 14 to 18

GDP - Q3 ZEW - November %q/q %y/y Current conditions

Median Forecast 0.5 2.5 35.0 High forecast 0.7 2.7 37.5 Low forecast 0.1 2.2 25.0 Previous period 0.1 2.8 38.4 - Number of responses 12 7 7

4Cast 0.5 2.5 35.0 Barclays 0.5 N/A N/A Action Economics 0.3 N/A N/A BNP Paribas 0.6 2.4 37.5 Capital Econ

France Data: MNI Survey Of Econ Data Forecasts Nov 14 to 18

GDP - Q3 %q/q %y/y

Median Forecast 0.35 1.6 High forecast 0.40 1.7 Low forecast 0.10 1.5 Previous period 0.00 1.7 - Number of responses 10 5

Action Economics 0.2 N/A Barclays 0.4 N/A BNP Paribas 0.3 1.6 Capital Economics 0.3 N/A Commerzbank 0.3 1.5 DZ Bank 0.4 1.6 ING 0.4 1.6 SEB 0.1 N/A Soc.