Federal Reserve

  • 2019-11-20 14:00


    WASHINGTON (MNI) - The following is an excerpt of the Federal Open Market Committee minutes describing committee's policy action, published Wednesday for the October meeting:

    With regard to monetary policy beyond this meeting, most participants judged that the stance of policy, after a 25 basis point reduction at this meeting, would be well calibrated to support the outlook of moderate growth, a strong labor market, and inflation near the Committees symmetric 2 percent objective and likely would remain so as long as incoming information about the economy did not result in a material reassessment of the economic outlook.

  • 2019-11-20 14:00


    WASHINGTON (MNI) - The following is an excerpt of the Federal Open Market Committee minutes describing committee's policy action, published Wednesday for the October meeting:

    Many participants noted that, once an ample supply of reserves is firmly established, there might be little need for a standing repo facility or for frequent repo operations. Some of these participants indicated that a basic principle in implementing an ample-reserves framework is to maintain reserves on an ongoing basis at levels that would obviate the need for open market operations to address pressures in funding markets in all but exceptional circumstances.

  • 2019-11-20 14:00


    WASHINGTON (MNI) - The following is an excerpt of the Federal Open Market Committee minutes describing committee's policy action, published Wednesday for the October meeting:

    Participants discussed the relative merits of qualitative, date-based, and outcome-based forward guidance. A number of participants noted that each of these three forms of forward guidance could be effective in providing accommodation, depending on circumstances both at and away from the ELB. They also suggested that different types of forward guidance would likely be needed to address varying economic conditions, and that the communications regarding forward guidance needed to be tailored to explain the Committees evaluation of the economic outlook.

  • 2019-11-14 12:00


    By Jean Yung

    WASHINGTON (MNI) - Federal Reserve Bank of New York President John Williams said Thursday that monetary policy is in a good place and only a material change would prompt a change in rates.

    The three rate cuts this year were meant to provide insurance against downside risks emanating from slowing investment and growth due to trade disputes and geopolitical tensions, "and that's what they've done," he said.

    "The economy is in a good place, and monetary policy is as well," he said in remarks prepared for a San Francisco Fed conference.

  • 2019-11-08 11:45


    By Jean Yung

    WASHINGTON (MNI) - Climate change deserves consideration in the Federal Reserve's setting of monetary policy as the risks are projected to have "profound effects" on the U.S. economy and financial system, Fed Governor Lael Brainard said Friday.

    "To fulfill our core responsibilities, it will be important for the Federal Reserve to study the implications of climate change for the economy and the financial system and to adapt our work accordingly," she said in remarks prepared for a San Francisco Fed conference on climate change.

    It is vital for policymakers to understand the nature of climate disturbances to the economy, including how natural disasters affect labor markets, household and business spending, output and prices, she said.

  • 2019-11-07 21:48


    By Evan Ryser

    NEW YORK (MNI) - The Federal Reserve Bank of Atlanta's President Raphael Bostic indicated Thursday that he will support an interest rate pause with the economy and inflation in a good place.

    "Right now, I think the changes that need to happen in the economy for me to feel like we are running too hot would be significant. At the same time, very similarly, the changes to suggest we are running significantly below my long-run average, that is going to be significant as well," Bostic said to reporters in New York City.

    "I am of the view that we should let the data tell us what the appropriate action is," Bostic said.

  • 2019-11-07 19:09


    -- Strongly Favor Weighing Incoming Data Over Coming Months

    NEW YORK (MNI) - Atlanta Federal Reserve President Raphael Bostic said Thursday that he is comfortable with the current stance of monetary policy in the face of "gathering storm clouds" that include trade policy and slowing global growth.

    "I am fairly comfortable standing pat with policy and strongly favor weighing the incoming data, both macro and micro, over the coming months before deciding on any further adjustments," Bostic said in prepared remarks for the Money Marketeers of New York University.

    "I do think that the economy today is on a solid footing and is likely to remain so," Bostic said.

  • 2019-11-06 15:20


    Harker Silent On Interest Rate Policy

    NEW YORK (MNI) - Federal Reserve Bank of Philadelphia leader Patrick Harker said Wednesday that tight labor markets and developments in artificial intelligence present an opportunity to improve the workforce.

    "Unemployment is at a half-century low. Businesses are having trouble finding skilled workers. This has, to some extent, forced us to view the workforce from a new perspective," Harker said in prepared remarks to be delivered at Drexel University in Philadelphia.

    "For one, the change is coming a lot faster than it used to. For another, the labor market itself is different.

  • 2019-10-30 14:16


    WASHINGTON (MNI) - The following is the portion of a transcript from Federal Reserve Chairman Jerome Powell's press conference after the FOMC meeting Wednesday:

    Q: Given this sustained level of low inflation even in this country, do you think -- there seems to be a higher possibility that lower expected -- lower inflation expectation will remain going forward. Do you think a Japan-like situation or Japan (inaudible) of chronically low inflation and interest rates the U.S. is getting trapped by the Japanification of this situation? Do you think so?

    A: So we, of course, have watched the situation in Japan and now the situation in Europe and we note that there are significant disinflationary pressures around the world.

  • 2019-10-30 14:15


    WASHINGTON (MNI) - The following is the portion of a transcript from Federal Reserve Chairman Jerome Powell's press conference after the FOMC meeting Wednesday:

    Q: Have the problems in repo market led you looking to whether the liquidity and capital requirements for banks are too high? Is that something that the Fed might review?

    A: So we are -- I think again the most important basic thing is to get the level of reserves back up so that reserves move up and down with sol volatility. We don't want them to move below the level they were at in the beginning of September which is again between 1.45 and 1.5 trillion. That's the main thing. That's the first thing and we are on a path to do that between our temporary open market operations and also our bill purchases.