Federal Reservations

The Federal Reserve is pausing after a six-month campaign to boost growth, while policy makers assess a puzzling economic outlook.

Originally from WSJ.com: Economy

The Federal Reserve is pausing after a six-month campaign to boost growth, while policy makers assess a puzzling economic outlook.

Originally from WSJ.com: Economy

I always read Jon Hilsenrath's articles on the Fed very closely. Right now the Fed seems uncertain about QE3, and the decision remains data dependent (as always) ... from Hilsenrath at the WSJ: Fed Takes a Break To Weigh Outlook

Fed officials meeting next week are unlikely to take any new actions to spur the recovery, and they are likely to emerge with a slightly more upbeat—but still very guarded—assessment of the economy's performance.
...
A big question is whether the Fed will launch a new bond-buying program in an effort to push down already low long-term interest rates.
...
Mr. Bernanke signaled to Congress last week that he had doubts about the sustainability of the employment gains. Fed officials aren't inclined to move while they try to solve the puzzle. "In light of the somewhat different signals received recently from the labor market than from indicators of final demand and production," he said, "it will be especially important to evaluate incoming information to assess the underlying pace of economic recovery."

Several economists still expect QE3 to be announced at one of the two day meetings in April or June - or maybe in Q3.

Goldman Sachs economists wrote on Friday:

We expect that the Fed will ultimately announce a return to balance sheet expansion sometime in the first half of 2012, likely including purchases of mortgagebacked securities (MBS).

And Merrill Lynch noted last week:

In our view, it is wishful thinking to believe the Fed will do QE when the data flow is healthy. We expect renewed QE only after Operation Twist ends in June ... only if the economy is slowing ... Under our growth forecast ... QE3 comes in September.

If the economy slows, and key inflation measures start falling again - then QE3 is very likely. But right now, with most data a little better than expected, and inflation a little higher than the Fed's target, the Fed is back to "wait and see". The next FOMC meeting is on Tuesday March 13th.

Yesterday:
• Summary for Week ending March 2nd
• Schedule for Week of March 4th

Originally from Calculated Risk

NEW YORK (Reuters) - Wall Street's biggest banks are locked in an increasingly frantic struggle with the Federal Reserve over the right to retain the jewels of their commodity trading empires: warehouses, storage tanks and other hard assets worth billions of dollars.

Originally from Reuters: Business News

WASHINGTON (MarketWatch) -- The Federal Reserve extended by a month the period to comment on the prudential standards and early remediation requirements of the Dodd-Frank bank reform law. Commenters now have until April 30 to submit views on issues including capital, liquidity, single counterparty credit limits, stress testing, risk management, and early remediation requirements.

Originally from MarketWatch

U.S. economic growth has been anemic and the Federal Reserve must "keep applying monetary policy stimulus vigorously," San Francisco Federal Reserve President John Williams said on Thursday.

Originally from All News, Video and Posts related to TOPIC: Federal Reserve

HONOLULU, Hawaii (Reuters) - Higher oil prices are affecting U.S. growth but are currently not a reason to think the economy will stall, a top Federal Reserve official said on Thursday.

Originally from Reuters: Business News

WASHINGTON (Reuters) - Federal Reserve Chairman Ben Bernanke and other top officials of the U.S. central bank on Thursday highlighted risks to the economic recovery despite recent signs of strength, but offered few hints that any additional monetary stimulus might be needed.

Originally from Reuters: Business News

The Senate Banking, Housing and Urban Affairs Committee and Federal Reserve chairman Ben Bernanke discuss jobs growth in America and whether long-term infrastructure investments are key for economic growth.

Originally from All News, Video and Posts related to TOPIC: Federal Reserve

WASHINGTON (MarketWatch) -- Cleveland Federal Reserve Bank President Sandra Pianalto said Thursday that she is comfortable with the current stance of monetary policy. "I would prefer nothing more that to support an increase in interest rates before late 2014 on the basis of a brighter outlook for economic growth - but I am not there yet," Pianalto said in a speech to The City Club of Cleveland. Pianalto said she does not support "doing more" at this time because it could create too much inflation risk. Doing less could risk weakening an already slow expansion, she said. Pianalto is a voting member of the Federal Open Market Committee this year.

Originally from MarketWatch