Fed's Waller says high inflation through year end may need 'aggressive' response

WASHINGTON (Reuters) – If high inflation continues through the end of the year the Fed may have to adopt “a more aggressive policy response” to control it, Federal Reserve Governor Christopher Waller said in remarks on Tuesday outlining the case for why Fed officials may have misdiagnosed the current pace

Inflation from supply crunch giving central banks an unfixable problem

HONG KONG (BLOOMBERG) – The global economy’s supply crunch is propelling inflation at such a fast pace that central bankers may be forced to respond, even though fixing that imbalance is beyond their power. Their dilemma is that it is hard to tell just how much of the inflation is

November? December? Fed's 'taper' timeline tied to volatile jobs data

WASHINGTON (Reuters) – The Federal Reserve, facing a labor market that may be stalling or on the cusp of a surge, is expected next week to open the door to reducing its monthly bond purchases while tying any actual change to U.S. job growth in September and beyond.FILE PHOTO: The

Dollar recovers ground as jobless claims data helps

NEW YORK (Reuters) – The U.S. dollar edged higher on Thursday, recovering some of the ground lost in the prior session after the head of the Federal Reserve told Congress he saw no need to rush the shift towards tighter post-pandemic monetary policy.Slideshow ( 2 images )The dollar index, which

Fed may opt for faster phase-out of housing-backed bond purchases

(Reuters) – The Federal Reserve could stop adding to its holdings of mortgage-backed securities (MBS) several months before it finishes increasing its stockpile of Treasuries, if the findings of a Reuters poll of economists are a guide.FILE PHOTO: The Federal Reserve Bank of Boston’s President and CEO Eric S. Rosengren

How the Fed saved 2020

(NYTIMES) – By the middle of March 2020, a sense of anxiety pervaded the US Federal Reserve. The fast-unfolding coronavirus pandemic was rippling through global markets in dangerous ways. Trading in Treasuries – the government securities that are considered among the safest assets in the world, and the bedrock of

Bank of Korea slashes rate in emergency move after US Fed cut

SEOUL (BLOOMBERG) – The Bank of Korea slashed its benchmark interest rate to a record low of 0.75 per cent in an emergency move following actions by the Federal Reserve and other central banks to combat economic damage from the coronavirus outbreak. The BOK convened its first emergency board meeting