Central Banks

  • 2020-01-28 00:25

    TOKYO (MNI) - Japan's government on Tuesday nominated Seiji Adachi, 54, chief economist at Marusan Securities, as a successor to BOJ board member Yutaka Harada, Diet officials confirmed to MNI.

    A series of nominations to a key parliamentary committee for candidates to replace officials in major positions expiring by April included that for the replacement BOJ board position, the official said.

    Pending parliamentary approval, Adachi will replace Harada, whose five-year term on the nine-member BOJ board ends Mar. 25.

  • 2020-01-27 01:11

    TOKYO (MNI) - Japan's government will submit the names of candidates to take major government posts to the Diet on Jan. 27, a Diet official said Monday.

    The official didn't elaborate on what positions would be among the nominations, but the lists will likely include candidate of Yutaka Harada, Bank of Japan board member and whose five-year term ends on Mar.

  • 2020-01-24 10:45

    --Ex-Kansas Fed President Sees Steady Rates This Year

    WASHINGTON (MNI) - The Federal Reserve won't be able to reverse ultra-easy monetary policies for at least a decade, adding risk to the financial system, former Kansas City Fed President Thomas Hoenig told MNI.

    The Fed is getting stuck in a world of ample bank reserves and extensive bond purchases in a financial system already characterized by excess leverage, Hoenig said in an interview. Hoenig also saw little chance the Fed will move its policy rate this year.

    "Now QE is the policy tool -- they're trapped and I don't see how they're getting out of it anytime soon," he said.

  • 2020-01-23 19:44

    TOKYO (MNI) - The Bank of Japan must consider possible pre-emptive policy options to cope with greater downside risks to economic activity and prices, a few Board members suggested at the December 18-19 policy-setting meeting, according to the minutes released Friday.

    However, many board members were prepared to stick with the current easy policy, while closely watching developments.

    One member voiced concern over side-effects from the Bank's easy policy, citing the deceleration in lending by regional financial institutions.

    The BOJ voted 7-2 to left monetary policy unchanged at the meeting, as widely expected, repeating that "downside risks concerning overseas economies seem to remain significant, and it also is necessary to pay close attention to their impact on firms'

  • 2020-01-22 01:49

    TOKYO (MNI) - The Bank of Japan warns that corporate investment may slow if profits at automobile-related goods and capital goods firms declined, according to full text of the quarterly Outlook Report published Wednesday.

    "Business fixed investment, (a main pillar for an economic recovery), is expected to remain steady overall as firm investments in construction as well as in software and research and development offset weak machinery investment by manufacturers," the report said.

    "However, since some weakness has continued in exports and production - particular in automobile-related goods and capital goods, both of which have a large impact on Japan's economy - due attention needs to be paid to the possibility that firms' investment stance may become cautious if profits

  • 2020-01-21 14:11

    By Evan Ryser

    WASHINGTON (MNI) - The Federal Reserve is practically engaging in quantitative easing without officially announcing such a policy, President Donald Trump's top economic adviser Larry Kudlow said Tuesday.

    Asked whether the Fed's Treasury bill purchases is another way for the Fed to quietly do QE, "I basically do," Kudlow said in a panel in Davos, Switzerland.

    "The net effect is they are expanding the balance sheet, whatever you wish to call it. I think it's not a coincidence that the stock market and housing market -- and indeed asset prices -- are rising again," he told the World Economic Forum.

    "The stock market has been a mirror of all this stuff. It's almost uncanny," Kudlow said.

  • 2020-01-20 07:00

    By Evan Ryser

    WASHINGTON (MNI) - Climate change threatens the price stability targets of central banks and the damage could force them to rescue the financial system again, the Bank for International Settlements said in a research paper Monday.

    Central banks may have to become "climate rescuers of last resort" and buy large sets of devalued or carbon-intensive assets, said the paper from the Switzerland-based BIS.

    "A new global financial crisis triggered by climate change would render central banks and financial supervisors powerless," said the paper by BIS Deputy General Manager Luiz Awazu Pereira da Silva and co-authors Patrick Bolton, Morgan Despres, Frederic Samama and Romain Svartzman.

    Central banks have a role to play in avoiding such an outcome, like providi

  • 2020-01-17 12:45

    By Jean Yung

    WASHINGTON (MNI) - Federal Reserve Governor Randy Quarles on Friday laid out proposals to increase transparency in how the Fed supervises banks, including giving them more time to review their stress test results and seeking public and Congressional input on the Fed's supervisory guidance.

    The Fed Board could provide more transparency on the design of its stress test, make their requirements less "volatile" from year-to-year and allow firms more time to review their results, Quarles said in remarks prepared for an American Bar Association meeting in Washington.

  • 2020-01-17 08:34

    By Evan Ryser

    WASHINGTON (MNI) - President Donald Trump is sending long-delayed Federal Reserve Board of Governors nominations of Judy Shelton and Christopher Waller to the Senate for confirmation, according to an announcement from the White House on Thursday.

    Shelton, a former adviser to President Trump's 2016 presidential bid and controversial economist who most recently served as the U.S. executive director at the European Bank for Reconstruction and Development, and Waller, the research director and executive vice president of the St. Louis Fed, were originally named as potential nominees by Trump in early July in the form of a tweet.

    Shelton has been nominated to a term expiring in Jan. 2024 and Waller to a term expiring in Jan. 2030.

  • 2020-01-16 10:00

    By Evan Ryser

    WASHINGTON (MNI) - National indicators suggest a positive outlook for the housing sector over the next several quarters despite headwinds due to tight labor markets hitting some building companies and a declining presence of community banks, Federal Reserve Board Governor Michelle Bowman said Thursday.

    The economy is in a good place with a baseline outlook for continued moderate growth over the next few years, Bowman said. Unemployment is expected to remain low and inflation though it has been muted is expected to rise gradually to the FOMC's 2% objective.

    "I remain optimistic about the outlook for housing," Bowman said before the Home Builders Association of Greater Kansas City.