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Fed keeps rates on hold, points to ‘favorable’ economic outlook

WASHINGTON — The US Federal Reserve on Wednesday held interest rates steady and signaled borrowing costs will not change anytime soon, with moderate economic growth and historically low unemployment expected to persist through the 2020 presidential election.

As US Fed reiterates rate pause, forecasts seen blown off course

WASHINGTON — Friday’s booming US jobs report should give the Federal Reserve all it needs to stick to its plan not to cut interest rates further in the near future, so when US central bankers meet this week, most of the focus will be on their outlook for next year and beyond.

Repo market blowup fueled by big banks and hedge funds, BIS...

THE SEPTEMBER MAYHEM in the US repo market suggests there’s a structural problem in this vital corner of finance and the incident wasn’t just a temporary hiccup, according to a new analysis from the Bank for International Settlements (BIS).

US Federal Reserve, trade war make $488-B Japan fund a Treasuries...

JAPAN’S Asset Management One Co. has a bullish call on Treasuries. One for the long, long run.

US monetary policy ‘in a good spot,’ says Mester

COLLEGE PARK, Md. — The current level of interest rates is appropriate for the US economy and the Federal Reserve should now pause as it monitors how the economy evolves, Cleveland Fed President Loretta Mester said on Monday.

Big bets in Asia on Fed have traders guessing who’s paying

THE EURODOLLAR options market, where investors bet on US interest rates, is typically quiet during Asian trading hours. The lack of liquidity hasn’t stopped the building of huge positions in recent weeks.

Easing slowdown seen pushing yields up

THIS YEAR’S flood of monetary easing is slowing to a trickle as the world’s central banks judge they’ve done enough to avoid a recession, giving investors cause to think sovereign bond yields have finally bottomed.

Fed is data-dependent from here, NY Federal Reserve’s Williams says

NEW YORK — New York Federal Reserve President John Williams said Wednesday any changes in interest rates from here will depend on the incoming economic data but policy makers should be preemptive in taking steps to keep the expansion alive.

US Fed cuts key rates to boost economy, signals it is...

WASHINGTON — The Federal Reserve on Wednesday cut interest rates for the third time this year to help sustain US growth despite a slowdown in other parts of the world, but signaled there would be no further reductions unless the economy takes a turn for the worse.

Dollar bides time before Federal Reserve decision

TOKYO — The dollar traded narrowly as markets braced for a rate cut by the Federal Reserve later on Wednesday, while sterling steadied after Britain’s lower house of parliament approved calling an early election in December that might break the Brexit deadlock.

Fed copies 1990s playbook in bid to avert downturn

WASHINGTON — In the midst of what became a golden decade for the US Federal Reserve, central bankers twice in the 1990s cut interest rates in short bursts that managed to help the US economy continue growing despite slowing investment and weak growth overseas.

Fed must be ‘aggressive’ to boost inflation in low rate world

PEORIA, ILL. — A low interest rate environment sets limits on what the Federal Reserve can accomplish with monetary policy, making it important for the Fed to “proactively” cut rates when risks appear to provide a buffer for the economy, Chicago Fed President Charles Evans said Wednesday.

Uncertainty to persist along with Fed’s divide

LOS ANGELES — With two weeks to go until their next policy meeting, US central bankers appear unconvinced a partial US-China trade deal is enough to dispel the policy uncertainty that has weighed on economic growth for months.

US growth sustainable: Powell

DENVER — Federal Reserve chairman Jerome Powell on Tuesday flagged openness to further rate cuts to fend off global economic risks, repeating that the central bank will act “as appropriate” amid an economy that he said is likely to continue to expand.

Federal Reserve policy makers say lower rates are helping

EFFINGHAM, ILL./SAN FRANCISCO — The Federal Reserve has delivered a boost to the economy this year not only with interest-rate cuts but also because it shifted away from its earlier view that it would need to raise rates in 2019, two Fed policy makers said on Monday.

Fed shuns negative rates, looks to other tools to boost economy

FEDERAL RESERVE Chairman Jerome Powell and his colleagues are loath to follow Europe and Japan into negative interest rate territory — no matter what President Donald Trump might want or how bad the US economy might get.

Fed divided on rate cut, wanted to avoid hinting on more...

WASHINGTON — Federal Reserve policy makers were deeply divided over whether to cut interest rates last month but were united in wanting to signal they were not on a preset path to more cuts, a message not likely to sit well with US President Donald Trump.

Fed’s Daly says she doesn’t see a recession on horizon

THE US ECONOMY doesn’t appear to be headed toward a recession, Federal Reserve Bank of San Francisco President Mary Daly said.

Fed’s Rosengren wants evidence of economic slowdown for easing

FEDERAL RESERVE Bank of Boston President Eric Rosengren continued to push back against further interest-rate cuts by the central bank, arguing he’s not convinced that slowing trade and global growth will significantly dent the US economy.

Powell seen using Jackson Hole to suggest fresh cut

FEDERAL RESERVE Chairman Jerome Powell will have no lack of material to choose from when he kicks off the central bank’s annual Jackson Hole symposium Friday with a speech on the challenges for monetary policy.

Former Fed chairs say US central bank must be free of...

WASHINGTON — The four living former chairs of the Federal Reserve on Monday called for the US central bank to remain free to work independently and without fear of political reprisals in a rare joint public statement.

Fed cuts interest rates, signals it may not need to do...

WASHINGTON — The Federal Reserve cut interest rates on Wednesday, but the head of the US central bank said the move might not be the start of a lengthy campaign to shore up the economy against risks including global weakness.

Fed’s regional structure aids policy independence

THE FEDERAL Reserve’s unique structure helps preserve monetary policy independence, according to a new academic study that comes at a time of heightened tensions between the White House and the central bank.

Asset bubbles to zombie companies: the dark side of interest rate...

WARREN BUFFETT’S warning that you only learn who’s swimming naked when the tide goes out is hardly heard these days as waves of easy monetary policy wash over the world’s financial markets.

What’s next after the Fed cuts its benchmark rate?

SAN FRANCISCO — US central bankers are expected to lower borrowing costs this week for the first time since the depths of the financial crisis more than a decade ago. That’s the easy part.

Fed to cut rates for first time in a decade this...

A QUARTER-POINT Federal Reserve interest rate cut in July is almost a done deal, according to economists in a Reuters poll, who expect another later in the year amid rising economic risks from the ongoing US-China trade war.

Tightening to end as central banks sound retreat

THE ERA of quantitative tightening by major central banks is proving to be short-lived.

Fed leaning toward a quarter-point July interest rate cut led by...

FEDERAL RESERVE Chairman Jerome Powell and his colleagues look primed to cut interest rates by a quarter percentage point later this month, eschewing a bigger move in what would be their first reduction in borrowing costs in more than a decade.

US Fed seen launching repo facility next year

THE FEDERAL RESERVE may launch a policy tool to lend to banks using Treasuries and other securities as collateral in early 2020, with possible testing to begin later this year, a Deutsche Bank strategist said.

Trump’s Fed nominees likely to support easier policy

AFTER A yearlong assault on the Federal Reserve and its chairman, US President Donald Trump has tapped two wildly different economists to the central bank’s board who seemingly have one important thing in common.

Exotic derivatives bet on Fed policy disappointment

A DOVISH Federal Reserve may be boosting bonds and giving a fillip to stocks, but UBS Group AG is dangling a strategy for traders to wager the honeymoon won’t last.

Federal Reserve may cut rates if inflation weakens

HONG KONG — Further weakness in inflation could prompt the US Federal Reserve to cut interest rates, even if economic growth maintains its momentum, James Bullard, President of the Federal Reserve Bank of St. Louis, said on Wednesday.

Fed policy maker sees no strong case for hike or cut

NEW YORK — Strong US economic growth and subdued inflation mean there is no strong argument for a rate hike or cut right now, though business confidence is fragile, a Federal Reserve policy maker said on Wednesday.

Fed’s Williams says policy makers need to better prepare for lower...

TORTUROUSLY SLOW recoveries from recessions and low inflation are here to stay unless policy makers can get a better grip on how to stabilize the global economy in an era of lower interest rates, a top Federal Reserve policy maker said on Tuesday.

Fed’s Clarida rejects rate-cut pressure

FEDERAL RESERVE Vice-Chairman Richard Clarida pushed back against speculation in financial markets the central bank will cut interest rates to boost softening inflation up to its 2% target.

Fed plans new regulatory regime for foreign banks

WASHINGTON — The US Federal Reserve on Monday proposed a new regulatory regime for 23 foreign banks operating in the US that could make life easier for some lenders, while tightening up rules for more risky foreign firms.

Rate-hike patience may cost Fed if inflation softens

FEDERAL RESERVE officials say they’re willing to tolerate an overshoot of their inflation goal. If the opposite happens, the plan is less clear.

US Federal Reserve’s jumbled talk leaves balance-sheet message in ‘disarray’

THE FEDERAL RESERVE’S best laid plan for a below-the-radar rundown of its $4.1 trillion balance sheet has gone awry.

Leading Fed hawk Esther George urges peers to be patient on...

FEDERAL RESERVE Bank of Kansas City President Esther George, who has been one of the most hawkish members of the central bank’s policy group, urged her peers to be patient and pause before considering additional rate increases.

Fintech firms want to shake up banking, and that worries Fed

WASHINGTON — The US Federal Reserve is wary of giving “fintech” firms such as OnDeck Capital Inc. or Kabbage Inc. access to the country’s financial infrastructure, putting the central bank at odds with other regulators looking to bring them into the fold.

FOMC minutes to reveal debates behind unanimous rate decision

INVESTORS MAY have moved on from the Federal Reserve’s December policy meeting after Chairman Jerome Powell offered more-soothing remarks two weeks later, saying the central bank is “prepared to adjust policy quickly.”

Federal Reserve may get less bang for buck if it repeats...

FOR THE Federal Reserve, 2019 has started out looking a lot like 2016: the last time uncertainty over global growth roiled financial markets for months on end.

Federal Reserve’s Williams says strong economy warrants further rate hikes

FEDERAL RESERVE Bank of New York President John Williams gave an optimistic review of the US economy, reiterated his support for further gradual interest-rate increases and expressed no concern that market participants have dialed back expectations for policy tightening in 2019.

After hike, Fed minutes may hint on path ahead

MARKET PARTICIPANTS have a burning question for the Federal Reserve: How high will policy makers hike interest rates before pausing for a breather?

Federal Reserve chief sees muted inflation risk in ‘extraordinary economy’

FEDERAL RESERVE Chairman Jerome Powell welcomed recent increases in Americans’ wages while expressing confidence that low unemployment won’t spur a takeoff in prices that would force him to hike interest rates aggressively.