Fed offers hints at potential for early rate hike August 20, 2014 THE FEDERAL Reserve may raise interest rates at a faster pace than currently expected, if the country’s recent rapid growth continues. Minutes from the latest meeting of the US central bank’s Federal Open Market Committee (FOMC) said yesterday that “it might become appropriate to begin removing monetary policy accommodation sooner than they currently anticipated” if [...]
Fed minutes: what you need to know August 20, 2014 The Federal Reserve has released the minutes from its 29-30 July meeting on monetary policy. As with the minutes published by the Bank of England earlier today, there was a certain amount of dissent from some of those present regarding the key issue of interest rate rises. From the release: Some participants viewed the actual [...]
Fed intends to keep interest rates low long after tapering ends July 30, 2014 Today's dovish monetary policy statement from the Federal Reserve confirmed expectations that it would look to delay the hiking of interest rates for a long time after tapering ends. It affirmed its commitment to stimulating the economy, saying that it wants to hold short-term interest rates near zero until well into 2015. Also [...]
Fed chair Janet Yellen defends low interest rates amid concern over frothy prices July 16, 2014 Federal Reserve chair Janet Yellen held the line during a grilling from US politicians yesterday, arguing that the economic climate meant that very low interest rates were still appropriate. “If the Fed [and Yellen] is going make a change in rhetoric, it is likelier to come at the September meeting, because that is the next [...]
Federal Reserve sees social media and biotech valuations as “substantially stretched” July 15, 2014 The Federal Reserve has joined the voices calling out biotech and social media stocks as over-priced. In its Monetary Policy Report, the Fed says "valuation metrics in some sectors do appear substantially stretched," singling out smaller firms in both social media and biotechnology. So what valuation metrics might the Fed be using? The most popular [...]
Top economists aren’t convinced by Republican proposal for Federal Reserve monetary policy rule July 14, 2014 Economists aren't impressed by the latest bright idea out of Washington. A Republican proposal to have the Federal Reserve bound by a formal rule, that would mandate a relationship between the Federal funds rate and macroeconomic measures, is failing to win many fans among academic economists. Those behind the legislation are fans of economists like [...]
Fed minutes: QE stimulus to end in October July 9, 2014 The US Federal Reserve plans to end its program of quantitative easing in October according to minutes released from meetings in June. US markets dipped briefly on the news but quickly moved higher. The end of the bond buying program which began in September 2012 has already slowed by $10bn each month and the US [...]
Federal Reserve’s chair Janet Yellen stays firm on low interest rates July 2, 2014 Federal Reserve chair Janet Yellen yesterday stuck by the US central bank’s loose monetary policy, reiterating her view that regulation should be the key tool used to combat financial stability risks. She argued that interest rates should seldom be used to combat risks to financial stability and that doing so to counter the US housing [...]
Asian markets climb after upbeat Fed comments June 19, 2014 Asian markets are up after positive comments from both the Federal Reserve and Chinese Premier Li Keqiang, with the situation in Iraq failing to dampen optimism. The US central bank has indicated that rates will remain low for some time to come after a two-day policy review. The remarks sent the S&P 500 to a [...]
S&P hits record after Fed assures markets on rates and economy June 18, 2014 THE S&P 500 closed at a new record high last night as US stocks rose in the wake of the Federal Reserve striking a doveish tone in its post-meeting statement. The Fed hinted at a slightly faster pace of interest rate increases starting next year, but also suggested long-term rates would be lower than indicated [...]
