Federal Reserve

  • 2019-08-06 15:49


    By Jean Yung

    WASHINGTON (MNI) - St. Louis Fed President Jim Bullard on Tuesday said he supports one more quarter-point rate cut by December as insurance against the risk that trade policy uncertainty further drags down growth and to bolster inflation.

    Speaking to reporters after giving a speech to the National Economists Club, Bullard said he anticipates trade policy uncertainty to stay high but cautioned that monetary policy should not respond to every threat and counter-threat.

    "I had already penciled in 50 basis points (in cuts) as of June. We made one of those moves at the July meeting and could make another one of those by the end of the year.

  • 2019-08-05 13:39


    By Evan Ryser

    WASHINGTON (MNI) - The Federal Reserve will launch a real-time payment system in 2023-2024 capable of making transactions within the United States in seconds

    The FedNow Service will initially be limited to transactions of no more than $25,000, the Fed said, adding that it will explore how the new service will be able to most effectively support the broader U.S. payment system.

    "FedNow will permit banks of every size in every community across the country to provide real-time payments to their customers," Federal Reserve Governor Lael Brainard said in prepared remarks in a Kansas City Town Hall.

  • 2019-08-02 08:50


    By Jean Yung

    WASHINGTON (MNI) - Federal Reserve Bank of Boston President Eric Rosengren on Friday said he voted against the rate cut this week due to "somewhat elevated" concerns over financial stability and economic indicators showing the Fed is close to achieving its dual mandate.

    "With the unemployment rate near 50-year lows and inflation likely to rise toward the 2% target, and with financial stability concerns being somewhat elevated given near-record equity prices and corporate leverage, I do not see a clear and compelling case for additional monetary accommodation at this time," Rosengren said in a statement posted on the Boston Fed website.

    The Boston Fed chief laid out eight charts that illustrate his point. The charts showed the U.S.

  • 2019-07-31 15:13


    WASHINGTON (MNI) - The following is the portion of a transcript from Federal Reserve Chairman Jerome Powell's press conference after the FOMC meeting Wednesday:

    Q: Hi, Jean with MNI. Can you give us an update on the ongoing reassessment of the inflation framework, and have the discussions this year had any bearing on todays discussion?

    A: The monetary policy review is really for -- it's really there to look at the way we make policy in the longer run. And it's not something that enters directly into our discussions today. We've -- so far we've had a series of meetings called Fed Listens at almost all the reserve banks, soon it will be all the reserve banks. We meet there with the constituencies we serve.

  • 2019-07-31 15:04


    WASHINGTON (MNI) - The following is the portion of a transcript from Federal Reserve Chairman Jerome Powell's press conference after the FOMC meeting Wednesday:

    Q: You've talked in this press conference about being data-dependent going forward, and this is not the start of a series of rate cuts. But the financial markets seem to think that this is the start of a series of rate cuts, and they're predicting three or four cuts this year. Is this your effort to try to damp down that thinking?

    A: Let me be clear. I said it's not the beginning of a long series of rate cuts. I didn't say it's just one or anything like that. I said when you think about rate cutting cycles they go on for a long time. The committee is not seeing that, not seeing us in that place.

  • 2019-07-31 14:58


    WASHINGTON (MNI) - The following is the portion of a transcript from Federal Reserve Chairman Jerome Powell's press conference after the FOMC meeting Wednesday:

    Q: The President has repeatedly called for this rate like and for the Fed to end the runoff of the balance sheet. What do you say to those that say that the Fed gave into what the President wanted today and could you also elaborate on why the Fed decided to speed up its runoff two months earlier today.

    A: I gave my reasons -- our reasons, really -- for doing this. And, you know, just to touch on that again, this action is designed to ensure against downside risks due to weak global growth, outset the effect and promote return to 2% inflation rate. That's what we've been talking about all year long.

  • 2019-07-31 14:50


    WASHINGTON (MNI) - The following is the portion of a transcript from Federal Reserve Chairman Jerome Powell's press conference after the FOMC meeting Wednesday:

    Q: Hi. Are there any circumstances under which you would decide to pause at one interest rate cut, today's interest rate cut, and not go ahead with further monetary easing at this stage, or are you predicting that, you know, once you have embarked on this easing, you will have to at least move by one more notch going forward?

    A: So our policy will depend on the implications of incoming data for the economic outlook, as well as evolving risks to the outlook. So we're going to be monitoring the implications of incoming information for the outlook, as I mentioned.

  • 2019-07-31 14:44


    WASHINGTON (MNI) - The following is the portion of a transcript from Federal Reserve Chairman Jerome Powell's press conference after the FOMC meeting Wednesday:

    Q: I want to follow up on that. Would you say we're -- you guys have gotten into a new regime here? This is an insurance cut and not a data-dependent cut? Are we now more in the realm of watching headlines of trade talks than we are watching unemployment rate and inflation numbers and growth numbers? How do we know what you're going to do next and why now in this new regime?

    A: I gave three reasons for what we did -- that is to ensure against downside risks to the outlook from weak global growth and trade tensions. That is a risk management point. And that is a bit of insurance.

  • 2019-07-31 14:42


    WASHINGTON (MNI) - The following is the portion of a transcript from Federal Reserve Chairman Jerome Powell's press conference after the FOMC meeting Wednesday:

    Q: You say the Fed is data-dependent. Much of the data we've seen since the June meeting has surprised or been in line with expectations. Can you give us a sense of how that better than expected data impacted the FOMC's thinking, and if we keep seeing these upside surprises, does that change or evolve any FOMC thinking going forward?

    A: Yes. I think we, of course, you know, what we do at every meeting, as I noted, is we do a deep dive into U.S. economic activity, and global activity, and certainly carefully went through U.S. economic activity, which there's been some positive and some negative. Overall the U.S.

  • 2019-07-31 14:40


    WASHINGTON (MNI) - The following is the portion of a transcript from Federal Reserve Chairman Jerome Powell's press conference after the FOMC meeting Wednesday:

    Q: There's a perception that in this case the Fed is a hammer in search of a nail. The latest consumer spending reports, as you suggested, don't seem to show any kind of demand problem in the U.S. When you look at mortgage rates, auto lending rates, they've all come down. And so I'm wondering exactly what problem lower capital costs will solve.

    A: So, you're absolutely right. The performance of the economy has been reasonably good. The position of the economy is as close to our objectives as it's been in a long time. And the outlook is also good.