If the first fear is global recession, the second is that central banks have run out of fixes. They do have means to respond, but only with radical and possibly dangerous policies whose efficacy is dubious. These nuclear monetary weapons might be better kept locked away. Printing money — or quantitative easing — has always [...]
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 [...]
09 Dec. The Bank of England maintains bank rate at 0.5% and the size of the asset purchase programme at £200 billion. The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases [...]
Faced with unusually sharp ideological attacks after its latest bid to stimulate the economy, the Federal Reserve now faces a challenge far removed from the conduct of monetary policy: how to defend itself in a hyperpartisan environment without becoming overtly political. Caught off guard by accusations from Congressional Republicans, Sarah Palin, Tea Party activists and [...]
20 Nov. Ben Bernanke, chairman of the US Federal Reserve, had the last word at the end of a tumultuous week in which the central bank took on its critics at home and abroad. In a speech at a European Central Bank conference at the grand Frankfurter Hof hotel in Germany’s financial capital, the Fed [...]
10 Nov. Tensions over currencies and trade gaps are simmering ahead of a summit of global leaders this week as America’s move to flood its sluggish economy with $600 billion of cash triggers alarm in capitals from Berlin to Beijing. Major exporting countries such as China and Germany are complaining about the Federal Reserve’s decision [...]
05 Nov. The US Federal Reserve’s decision to pump an extra $600bn into the economy has galvanized emerging market central banks into preparing defensive measures and sparked criticism from leading global economies. The Fed’s initiative, in response to rising concern about the weakness of the US economy, has fuelled fears of a sharp drop in [...]
04 Nov. By historical standards, it was a huge event. In terms of how markets reacted to it, the US Federal Reserve’s decision to buy $600bn of government bonds in the next eight months caused barely a ripple. Indeed, the latest round of stimulative US monetary policy, dubbed QE2, had been extremely well flagged. The [...]
01 Nov. This week’s meeting of the US Federal Reserve’s monetary policy committee will be one of the most important in decades as it prepares to launch a new round of quantitative easing. It will not be a “saving the world on a Sunday night” occasion like the meetings during the financial crisis, but that [...]
19 Oct. China’s news agency reported: The United States seems again planning to abandon the world on its track to economic recovery with the Federal Reserve’s latest hints on further monetary easing policy. At a Fed meeting Friday, Chairman Ben Bernanke implied the possibility of a second round of quantitative easing, or QE2, which is [...]