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Fed

Fed’s Fisher on CNBC

Fed’s Fisher on CNBC

Says:

  • ‘Tone is a lot better’ among businesses
  • Jan 25 FOMC statement was ‘talking down the economy’
  • Fed should be ‘cautious’ and ‘do the right thing’
  • ‘Things are getting better, not worse’
  • He sees no need for quantitative easing
  • ‘Our job is not to prob up the street’
  • Any expectation for new QE is ‘wishful thinking’
  • U.S. ‘still has too many people out of work’
  • Will be ‘pleased’ when FOMC develops an exit strategy
  • FOMC likely to keep rates low until improvement

 

 

Feds Plosser on the Wires

Says:

  • ‘Uncertainty’ on impact of expanding fed assets
  • Public may expect more from Fed than it can deliver
  • U.S. has ‘very serious economic imbalances’
  • Monetary policy shouldn’t be used as ‘A crutch’
  • Fed is doing ‘everything we can’
  • ‘Pressure is enormous’ on fed to think short term
  • Fed begins treasuries under maturity extension program

 

anBernanke Sees Signs Economy is Improving and Fiscal Policy Risks

  • Large and increasing level of government debt runs risk of serious economic consequences
  • Long way before labor market can be said to be operating normally
  • Fed will continue to monitor situation in Europe closely, and take every available step to protect US financial system and economy
  • There are concerns that have been weighing on US business investment
  • Inflation has declined and Fed expects it to remain subdued
  • Signs economy has declined and Fed expects it to remain subdued

FOMC Interest Rate Commentary and Headlines

  • 2012 growth at 2.2-2.6% vs. 2.5-2.9% in November forecast
  • Longer-run unemployment projections signal Fed’s assessment of maximum employment, but assessments uncertain, subject to revision
  • 6 of 17 Fed officials see no rate increase before 2015
  • 2% inflation target most consistent over long run with mandate
  • Maximum employment level largely determined by non-monetary factors
  • Inflation target of 2% in its longer-run goals and policy strategy statement
  • Not appropriate to adopt fixed goal for employment mandate

Fed Minutes of November-December Meetings

  • Directors said economic outlook ‘somewhat improved’
  • Governors expressed no sentiment to change discount rate
  • Inflation pressures eased since early ’11
  • KC fed directors sought to raise discount rate to 1%
  • Boston fed sought to slash rate to 0.5%
  • Directors noted ‘moderate growth’  in economy overall

Feds Williams on the Wires

Says:

  • ‘Vital’ for fed to aid ‘suffering’ U.S. economy
  • US unemployment level ’a national calamity’
  • Doing ‘everything we can’ to support economy
  • Unemployment likely to stay ‘very high’ for years
  • US unemployment still shockingly high

St. Louis Fed President Bullard on the Wires

Says:

  • Fed ‘very close’ to having inflation target
  • Inflation targeting possible in 2012
  • ‘Hard’ to talk of natural rate of unemployment
  • ‘Getting closer’ to longer-term policy issues
  • ‘Some measure of overall prices’ for possible target
  • Inflation measures do make adjustments
  • Forecasters too pessimistic on 2012

 

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