Fed’s funds rate falls below its target range on the last day of 2015

The Federal Reserve’s policy rate fell below its target range on the last day of 2015, data released Monday by the central bank show, a development that many traders anticipated but nonetheless renewed concerns about market forces threatening the Fed’s ability to control short-term interest rates. The daily benchmark, called the effective federal-funds rate, dipped to 0.20% on Dec. 31, below the Fed’s newly set 0.25%-0.5% range for interest rates on overnight loans between banks…

Fed must weigh wage pressures, U.S. risks falling behind curve on inflation: Fed’s Fisher

(Reuters) – Richard Fisher, president of the Dallas Federal Reserve Bank, said the United States risks falling behind the curve on inflation as wage pressure starts to bubble in some parts of the country. “I think we could suddenly get a patch of high growth, see some wage price inflation,” Fisher said on the Fox […]

Month In Motion – August 2014

U.S. labor market not fully recovered, Fed should move cautiously: Yellen

(Reuters) – U.S. labor markets remain hampered by the effects of the Great Recession and the Federal Reserve should move cautiously in determining when interest rates should rise, Fed Chair Janet Yellen said on Friday in a defense of her policy approach. In a speech at a central banking conference here, Yellen laid out in […]

Yellen: U.S. recovery not yet complete, still needs Fed support

(Reuters) – The U.S. economic recovery remains incomplete, with a still-ailing job market and stagnant wages justifying loose monetary policy for the foreseeable future, Federal Reserve Chair Janet Yellen told a Senate committee on Tuesday. In a strong defense of the central bank’s current stance, Yellen said that early signs of a pickup in inflation […]

Fed won’t raise interest rates merely to burst bubbles: Janet Yellen

No doubt about it: The Federal Reserve’s record low interest rates over the last few years have led some investors to take on riskier investments in search of higher returns. This is part of the reason why stocks keep reaching record highs…

Fed meeting may reveal new details on exit strategy

(Reuters) – The Federal Reserve’s policy committee concludes its latest meeting on Wednesday with little change expected in its outlook for interest rates but the potential for new details to emerge on the planned exit from its current easy monetary policy. The U.S. central bank is widely expected to…

Fed’s super-easy policies could have adverse consequences in the long run

(Reuters) – The Federal Reserve’s super-easy policies, if pursued for too long, could have adverse consequences in the long run, two top Fed officials said on Monday, although the biggest risk is not runaway inflation. Instead, San Francisco Fed President John Williams told reporters after participating in a monetary policy conference at the George W. Bush Institute in Dallas…

Fed may need to dust off its ‘How to’ interest rate guide

(Reuters) – Interpreting Federal Reserve policy is hard enough, but the central bank may need to dust off its ‘How to’ guide to explain the nuts and bolts of new tools it will use when it finally starts to raise interest rates. Traders and analysts in the past were accustomed to just glancing at the traditional federal funds rate…

Lockhart: Fed should make rate projections more consistent with policy statement

(Reuters) – The U.S. Federal Reserve should try to make its communications on the expected path of interest rates more consistent with its policy statements, a top official at the central bank said on Wednesday. Dennis Lockhart, president of the Federal Reserve Bank of Atlanta…

NY Fed poll shows bond dealers expected earlier rate hike after FOMC

(Reuters) – Wall Street bond dealers began anticipating an earlier first interest-rate hike from the Federal Reserve after last month’s policy meeting, according to the results of a poll by the New York Fed released on Thursday. That was exactly what Fed policymakers had feared would happen after…

World markets steady after volatile week over Fed policy, Crimea

(Reuters) – World markets steadied on Friday after a volatile week driven by speculation over shifts in U.S. monetary policy, with equities around the globe on the rise and the euro up against the dollar, while crude oil rose on fear of supply disruptions over Crimea. The benchmark S&P 500 index hit…

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