Monday, November 17, 2014

Dec 16-17 is the final Fed meeting for this year

The final Fed meeting of the year is scheduled for Dec. 16 and Dec. 17, 2014 followed by a summary of economic projections and a news conference with central bank chair Janet Yellen. 

Meanwhile, the Fed is hosting a meeting Monday with banks and regulators to discuss the development of a reference rate alternative to Libor, the London interbank rate that was at the center of a global rigging scandal.

Tuesday, November 11, 2014

Janet Yellen asks central bankers to fix their economies

U.S. Federal Reserve Chair Janet Yellen on Friday called on politicians across the globe to get their fiscal houses in order during good times to prop up economies during times of turmoil.

While speaking in Paris, France- Janet Yellen blamed part of the slow global economic recovery on weak government support.

She took aim at both U.S. political gridlock after the 2007-2009 financial crisis and the austere policies across Europe as the region struggles with persistently low inflation.

The crisis led major central banks to deploy unconventional tools to spur recovery. For its part, the Fed cut interest rates to zero and more than quadrupled its balance sheet to $4.4 trillion through three rounds of bond buying, eliciting howls of protest from some politicians who feared the monetary largesse would spark an unwanted inflation. It announced an end to its latest asset purchase program just last week.

While the unconventional tools helped support domestic recovery and global economic growth, more action from fiscal authorities would have strengthened the recovery, Yellen said.

"In the United States, fiscal policy has been much less supportive relative to previous recoveries," she said during a panel discussion at the Bank of France.

Yellen cited data that compared the large increase in U.S. government payrolls after the 2001 recession to the decline of 650,000 government jobs after 2008.

AS central banks seek to promote healthy economies, she said a sharpened focus on financial stability would play a key role.

Yellen did not comment on U.S. monetary policy, specifically, but said central banks globally would need to normalize policy as economic activity and inflation return to normal.

The timing and speed of policy normalization will vary across countries, Yellen added, and could lead to financial volatility.

Tuesday, November 4, 2014

Janet Yellen meets Obama for first meeting

President Barack Obama and Federal Reserve Chair Janet Yellen discussed the outlook for the U.S. and global economies and the implementation of Wall Street reforms during an Oval Office meeting on Monday, the White House said.

It was the first one-on-one meeting between Obama and Yellen since she took the helm of the central bank, which sets the nation's monetary policy but operates independently from the White House.

The Federal Reserve and other financial regulators are still finalizing rules from the 2010 Dodd-Frank Wall Street reform act, which aimed to strengthen the financial system after the 2007-2009 credit crisis shattered confidence throughout global markets.

Obama and Yellen talked about the near- and long-term outlook for the economy in the United States and around the world, the White House said. They also discussed the Consumer Protection Act.