Business

Fed rolls out bond-buying 'taper,' holds to 'transitory' inflation belief

WASHINGTON (Reuters) – The Federal Reserve on Wednesday said it will begin trimming its monthly bond purchases in November with plans to end them in 2022, but held to its belief that high inflation would prove “transitory” and likely not require a fast rise in interest rates.Slideshow ( 2 images )However, the U.S. central bank […]

Business

Fed's bond-buying timeline: roaring entry, boring exit?

(Reuters) – It is hardly a secret by now that the Federal Reserve is going to reduce its support for the U.S. economy soon: starting this month it will likely begin to pare its monthly asset purchases by $15 billion each month until ending them by mid-2022.FILE PHOTO: Federal Reserve Board building is pictured in […]

Business

Fed report shows wage pressures amid 'modest to moderate' economic growth

(Reuters) -U.S. employers reported significant increases in prices and wages even as economic growth decelerated to a “modest to moderate” pace in September and early October, the Federal Reserve said on Wednesday in its latest compendium of reports about the economy.FILE PHOTO: The Federal Reserve building is set against a blue sky in Washington, U.S., […]

Business

Analysis-Fed prepared to handle September jobs report with kid gloves

(Reuters) – U.S. hiring probably accelerated last month, a range of high-frequency indicators suggests, as the effects of the latest COVID-19 surge began to subside, but even a second straight weak employment report would be unlikely to derail the Federal Reserve’s plans to begin reducing its support for the economy.FILE PHOTO: Federal Reserve Chair Jerome […]

Business

Fed's Daly says equity is path to faster U.S. growth

FILE PHOTO: San Francisco Federal Reserve Bank President Mary Daly poses at the bank’s headquarters in San Francisco, California, U.S., July 16, 2019. REUTERS/Ann Saphir(Reuters) – San Francisco Federal Reserve Bank President Mary Daly on Wednesday intensified her call for a concerted effort to address racial and other inequalities as a way to boost the […]

Business

Two Fed policymakers say bar for taper met, nod to next debates

(Reuters) -A pair of Federal Reserve policymakers on Friday said they felt the U.S. economy is already in good enough shape for the central bank to begin to withdraw support for the economy, setting up for the next big debates for the central bank: when to raise interest rates and what to do with the […]

Business

Fed likely to open bond-buying 'taper' door, but hedge on outlook

WASHINGTON (Reuters) – The Federal Reserve is expected to clear the way on Wednesday for reductions to its monthly asset purchases later this year and show in updated projections whether higher-than-expected inflation or a resurgent coronavirus pandemic is weighing more on the economic outlook.FILE PHOTO: Federal Reserve Chair Jerome Powell testifies during a U.S. House […]

Business

Analysis-Investors betting on 'stable' choice of Powell renomination at Fed

NEW YORK (Reuters) – A potential renomination of Jerome Powell at the helm of the U.S. Federal Reserve would provide a needed sense of stability as the central bank prepares to pull back its emergency-level support, investors say, even while some chide the Fed chief for policies they say have pumped excessive liquidity into markets.FILE […]

Business

Five challenges the Fed chief may face in the next four years

(Reuters) – U.S. President Joe Biden’s coming decision of whether to reappoint Federal Reserve Chair Jerome Powell after his term expires in February or hand the reins to somebody else will arrive at a critical juncture for the central bank.FILE PHOTO: Federal Reserve building is pictured in Washington, DC, U.S., August 22, 2018. REUTERS/Chris Wattie/File […]

Business

Fed's Daly: Appropriate to consider tapering later this year

FILE PHOTO: Federal Reserve Board building is pictured in Washington, U.S., March 19, 2019. REUTERS/Leah Millis/File Photo(Reuters) -Federal Reserve Bank of San Francisco President Mary Daly said the U.S. central bank may be able to start reducing “a little bit” of its extraordinary support for the U.S. economy by the end of this year. “The […]