Volker Wieland is Professor of Monetary Theory and Policy at Goethe University of Frankfurt since 2000 and a Founding Professor of the Institute for Monetary and Financial Stability. Prior to joining the Frankfurt faculty he was a senior economist at the Federal Reserve Board in Washington, DC.
WASHINGTON — Federal Reserve Chairman Ben Bernanke said on Wednesday the U.S. central bank still expects to start scaling back its massive asset purchase program later this year, but left open the option of changing that plan in either direction if the economic outlook shifted.
While sticking closely to a timeline he first outlined last month that the Fed would halt bond buying by mid-2014, when unemployment was projected to be around 7%, Bernanke went out of his way to stress that nothing was set in stone.
Soon we won’t have Ben Bernanke to kick around anymore. Janet Yellen will head the Federal Reserve Bank.
What does it mean to you?
In an ideal world, it would mean nothing. You would shrug and go back to your morning coffee. Fed chairmen (and chairwomen), like referees, should not have such an impact on the game.
Competence in an economist is hard to measure, like knowing whether your auto mechanic is really any good.
The release of the statement from the Federal Reserve's latest FOMC monetary policy meeting today and Fed Chairman Ben Bernanke's subsequent press conference sent bonds tumbling. The chart below shows the exact moments that triggered the sell-off in 10-year Treasury futures that caused bond yields to soar today.
The non-news of the day is Bernanke says scope for more Fed easing
Federal Reserve Chairman Ben Bernanke says there’s room for the central bank to take more action in responding to critical questions from a top lawmaker on Capitol Hill.
Haruhiko Kuroda showed Wednesday he’s following in the footsteps of Ben Bernanke and Mario Draghi as he swung the Bank of Japan from incremental moves to unprecedented stimulus at the governor’s first policy meeting.
The BOJ will double the monetary base by the end of 2014 through buying government bonds, the central bank said in Tokyo, in Japan’s biggest round of quantitative easing. JPMorgan Chase & Co. said the Japanese and U.S. central banks are now “in the same camp” when it comes to monetary stimulus.