31 Mar. Federal Reserve Bank of St. Louis President James Bullard addressed members of various financial institutions in London. He delivered remarks titled “U.S. Monetary Policy and the Path to Normalization.” During his presentation, Bullard explained how the Fed’s second round of quantitative easing (QE) was “a classic easing of monetary policy” and “an effective [...]
01 May. The US Federal Reserve took steps toward creating tools that could help it eventually withdraw the billions of dollars it pumped into the economy to support economic recovery. The Fed has authorized a term deposit facility, similar to certificates of deposits banks offer their customers, that could be used by the Fed to [...]
The Federal Reserve has not been clear enough about how it intends to unwind its unprecedented monetary easing campaign, and some of the tools it expects to use may not work, monetary experts will tell Congress. John Taylor, a Stanford University economist and author of a key central banking rule of thumb, will testify before [...]
08 Mar. The Fed pumped more than $1 trillion dollars into the economy quickly, but it plans to take it out glacially, said Brian Sack, who runs the markets group at the New York Fed. The Fed is on course to own more than $1.25 trillion worth of mortgage backed securities by the end of [...]
Fed Chairman Bernanke yesterday provided more clarity about the Fed’s exit strategy from the current accommodative policy stance. In fact, he outlined a possible sequence: Test its tools for draining reserves, which include reverse repos and term deposits. For the former, he said the Fed is in the process of expanding its counterparties and developing [...]