ECB wants to avoid Fed’s 2013 ‘Taper Tantrum’

FRANKFURT — The European Central Bank is focused on avoiding a policy error committed four years ago by its big brother, the Federal Reserve. When the Fed indicated — on May 21, 2013 — that it would gradually wind down its $85 billion-a-month bond-buying program, asset prices and currencies plunged around the world in an episode known as the taper tantrum…

Policymakers think Fed will begin trimming its $4.5 trillion balance sheet later this year: minutes

Most Federal Reserve policymakers think the central bank should take steps to begin trimming its $4.5 trillion balance sheet later this year as long as the economic data holds up, minutes from their last meeting showed. The minutes released on Wednesday of the March 14-15 policy discussion, at which the Fed voted 9-1 to raise interest rates, also showed that the rate-setting committee had a broad discussion about whether to phase out or halt reinvestments all at once…

Fed tapers bond-buying program again, leaves rates unchanged

WASHINGTON (AP) — The U.S. economy still isn’t healthy enough to grow at a consistently strong pace without the Federal Reserve’s help. That was the message Fed Chair Janet Yellen sent Wednesday at a news conference after the central bank ended a two-day policy meeting…

Senate confirms economist Stanley Fischer for Fed board

The Federal Reserve’s board of governors is poised to get a host of new voices over coming months, a shuffling of personality and perspective that comes as a debate over when to start raising interest rates begins to get louder. The most prominent incoming governor is economist Stanley Fischer…

Fed sees strength in U.S. economy, ignores first quarter number

(Reuters) – The Federal Reserve on Wednesday looked past a dismal reading on first quarter U.S. growth and gave a mostly upbeat assessment of the economy’s prospects as it announced another cut in its massive bond-buying stimulus. Recent information “indicates that growth in economic activity has picked up…

Fed to shift focus from bond taper to three ‘big’ issues

(Reuters) – Federal Reserve policymakers this week are set to continue paring their massive bond-buying stimulus, but below the smooth surface of a likely unanimous vote lies a deeply divided Fed struggling to lay the groundwork for more difficult decisions ahead. Fed Chair Janet Yellen hinted at the U.S. central bank’s broad agenda a couple weeks ago…

When Will The Fed Hike Interest Rate?

According to Chief Economist Jans Hatzius at Goldman Sachs, Feds will hike interest rate in 2016, especially after today’s Nonfarm Payroll which showed strength in the US labor market despite of a severe winter.  Here are the highlights for NFP on March 7, 2014: (US) FEB CHANGE IN NONFARM PAYROLLS: +175K V +149KE Two-month Net […]

Research shows Fed’s Bullard had the biggest impact on bond markets in 2013

(Reuters) – Federal Reserve Bank of St Louis President James Bullard had the biggest impact on bond markets of all Fed policymakers in 2013, according to a new tally. Research by Macroeconomic Advisers showed Bullard, seen as a policy centrist, beat former Fed Chairman Ben Bernanke for the mantle of most market-moving U.S. central banker…

Threshold for changing course on tapering is ‘pretty high’: Fed’s Dudley

(Reuters) – The U.S. economic outlook would have to change substantially for the Federal Reserve to alter the pace at which it is winding down asset purchases, a top U.S. central banker said on Thursday. While growth is likely to quicken this year, the threshold for changing course on stimulus withdrawal is “pretty high,” said New York Fed President William Dudley during an event hosted by The Wall Street Journal…

US ADP NFP Employment Change | March 5, 2014 | Currency News

US ADP NFP Employment Change release will once again be one of the many focuses of the week, and with the NFP scheduled on Friday, and sharp deviation will be market changing, if not trend changing… 8:15am NY Time US ADP NFP Change Forecast 159K Previous 175K Deviation: 50K (BUY USD 209K / SELL USD […]

U.S. factory output drops to 4-1/2 years low in January amid cold weather

(Reuters) – U.S. manufacturing output unexpectedly fell in January, recording its biggest drop in more than 4-1/2 years, as cold weather disrupted production in the latest indication the economy got off to a weak start this year. Though consumer sentiment was steady in early February, there are worries the harsh weather…

Fed officials likely to continue tapering path

Federal Reserve officials don’t appear inclined to alter the course they have set out for monetary policy, despite a disappointing jobs report Friday that raised questions about the economy’s underlying strength. Central bank officials are on a path to reduce their monthly bond buying by $10 billion at coming policy meetings….

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