OTTAWA — Two of the world’s most powerful central banks will likely find themselves at odds this week.
The U.S. Federal Reserve is expected on Wednesday to maintain its current interest rate level, while focusing on gradually tightening borrowing costs as the economy improves — although the next hike may still be some ways off.
Federal Reserve Chair Janet Yellen said the central bank has a “continuing commitment” to support the recovery even as policy makers now see the economy reaching full employment by late 2016.
In a speech that outlined the disciplined policy framework she uses, Yellen told investors to pay attention to shortfalls in both inflation and the jobless rate for signals on the Federal Open Market Committee’s decisions on the policy rate.
WASHINGTON (Reuters) - The most revealing thing about Janet Yellen's widely praised Senate confirmation hearing performance last week might not have been what she said, but what she didn't say - and how she didn't say it.
Larry Summers and Janet Yellen would both lead the Fed well. But Ms Yellen is the safer choice BARACK OBAMA will soon make one of the biggest economic decisions of his presidency: who should replace Ben Bernanke as chairman of the Federal Reserve. Since America’s monetary decisions reverberate far beyond its borders, the world has an interest in having the best person in that job.
While Janet Yellen's testimony will be uneventful, with her toeing the party line, and the fluff Q&A largely priced in - although everyone is eagerly looking forward to the Maxine Waters grilling - far more interesting in today's Monetary Policy and State of the Economy hearing, will be the Part 2, where various experts (full list here), mostly hawks as it would appear, will provide their rebuttals to Yellen's views.
Federal Reserve Chairman Janet Yellen said more work is needed to restore the labour market to health and pledged to maintain her predecessor’s policies to ensure a return to full employment and stable prices.
Janet Yellen has spoken and the word was "hold." And not only that, the FOMC median forecast now only implies two rate hikes for 2016 versus four as the Fed's own outlook converges on market expectations. The read through on the US economy was relatively benign but worries about global markets persist, and the very fact that that has become what certainly appears to be a deciding factor in these decisions speaks to the notion that the invisible "third mandate" is becoming more and more apparent with each passing meeting.
By Neil Irwin Here is how to think about the July jobs numbers the government released Friday: Whatever you thought about the economy, or financial markets or the proper course of Federal Reserve policy at 8:29 am, just before the numbers were released, you have every reason to have also believed it at 8:31 am, just after. Employers added 215,000 jobs last month, but the average over the past six months is 213,000. The unemployment rate was 5.3 per cent, but that was the same as in June.
(WASHINGTON) — Renewed questions about the economy’s health and uncertainty surrounding the government’s budget fight will likely lead the Federal Reserve on Wednesday to maintain the pace of the stimulus it’s supplying to the economy. That expectation marks a reversal from just six weeks ago, when almost everyone expected the Fed to start trimming its $85 billion in monthly bond purchases. The bond buying is intended to keep long-term interest rates low to help the economy rebound from the Great Recession.