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ECB policy makers wary of following Fed route

FRANKFURT — There is reluctance among European Central Bank (ECB) policy makers to follow the US Federal Reserve’s move to target an average inflation rate, fearing this could tie their hands, sources involved in a revamp of ECB policy told Reuters.

Central bankers say fiscal aid crucial in pandemic battle

TOP United States and European central bankers on Tuesday called for renewed government spending to support families and businesses as the battle against the coronavirus-triggered recession enters a newly critical phase.

‘Follow the Fed’ rally may soon fizzle across bond markets

A breakneck rally across bond markets may slow as traders come to grips with the notion that the Federal Reserve’s support isn’t unconditional.

Fed’s slowing Treasury purchases may boost yields

NEW YORK — The Federal Reserve’s gradual withdrawal from the US Treasury market as the coronavirus pandemic eases and liquidity improves could dry up appetite for longer-dated government debt and push up long-term interest rates months from now.

Fed aims ‘bazooka’ to lift coronavirus-hit economy

THE US FEDERAL Reserve on Monday rolled out an extraordinary array of programs to backstop an economy reeling from sweeping restrictions on commerce that scientists say are needed to slow the coronavirus pandemic and ultimately keep more people safe.

New York Federal Reserve sees light demand for extra $500B in...

NEW YORK — The New York Federal Reserve saw light demand for an additional $500 billion in support to overnight lending markets on Monday, even after a spike in the cost of overnight loans indicated that companies were still feeling funding strains.

Fed slashes rates to near zero to cushion blow from coronavirus

WASHINGTON — The US Federal Reserve and global central banks moved aggressively on Sunday to buttress a world economy unraveling rapidly amid the coronavirus pandemic, with the Fed slashing interest rates to near zero, pledging hundreds of billions of dollars in asset purchases and backstopping foreign authorities with the offer of cheap dollar financing.

Fed adopts new ‘stress capital buffer’ for banks

WASHINGTON — The US Federal Reserve unveiled new rules on Wednesday that create a “stress capital buffer” to determine how much banks must hold in reserve to guard against downturns.

Fed cuts rates to blunt impact of coronavirus; markets drop

WASHINGTON — The US Federal Reserve cut interest rates on Tuesday in a bid to shield the world’s largest economy from the impact of the coronavirus, but the emergency move failed to comfort US financial markets roiled by worries about a deeper, lasting slowdown.

Fed ready to cut rates despite doubt they can offset virus...

THE FEDERAL RESERVE is now prepared to reduce interest rates this month even though it recognizes monetary policy cannot completely shelter a US economy increasingly threatened by the coronavirus.

US Fed officials cautiously optimistic on economy despite new risks —...

WASHINGTON — Federal Reserve policy makers were cautiously optimistic about their ability to hold interest rates steady this year, minutes of the central bank’s last policy meeting showed, even as they acknowledged new risks caused by the coronavirus outbreak.

Federal Reserve picks Shelton, Waller: two mavericks with little in common

ONE IS A credentialed insider who’s spent years at the Federal Reserve. The other is an idiosyncratic outsider who’s questioned why the Fed even exists.

Fedcoin? The US central bank is looking into it

PALO ALTO, Calif. — The Federal Reserve is looking at a broad range of issues around digital payments and currencies, including policy, design and legal considerations around potentially issuing its own digital currency, Governor Lael Brainard said on Wednesday.

Federal Reserve Bank of New York will continue repo offers into...

THE FEDERAL RESERVE Bank of New York said on Tuesday it will continue to inject liquidity into the overnight lending markets for cash until at least mid-February while slightly reducing offerings on longer term loans.

Fed on hold, but will financial risks matter?

US FEDERAL RESERVE officials may be in broad agreement that interest rates are unlikely to change soon, but they differed Monday on how concerned they are about developing financial risks in assessing when a rate hike might be appropriate.

Fed faces new trade-offs, hunts for new model, in low-rate world

SAN DIEGO — An unprecedented combination of low US unemployment, weak inflation and low interest rates has the US Federal Reserve grappling with how to fight the next recession, as experts debate new approaches to financial regulation as well as a fuller overhaul of Fed strategy.

More Fed officials see little need to change interest rates anytime...

NEW YORK — Two Federal Reserve policy makers on Tuesday made clear that they back the central bank’s current stance, echoing words by other policy makers last week that interest rates are in a sweet spot heading into 2020 and that the bar to cutting or raising them will be high.

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.