Federal Reserve System
McKinnon says Fed must raise rates to stimulate growth and employment
Leading academic says positive real interest rates are the only way out of a credit crunch that's holding back lending to the productive economy
Fed ‘stimulus’ chokes indirect finance to SMEs
Low interest rates in the US are crowding out indirect finance to SMEs and distorting financial markets generally. The Fed needs to act by raising rates to 2%, argues Ronald McKinnon
Fed working paper measures FOMC comms effect against theory of UIP
Paper finds 'little evidence' for a changed relationship between FOMC announcements and US interest rates since the 'onset of the zero lower bound'
US agencies clamp down on leveraged lending
Fed, FDIC and OCC issue updated standards for leveraged lenders amid concerns standards are again slipping and many institutions have ‘proven less than satisfactory’ in risk management practices
Fed pays $88bn in profits to US Treasury
Federal Reserve makes large profit on securities holdings in 2012; follows warnings from Ben Bernanke and Fed researchers that remittances are not likely to remain elevated
BoJ changes represent the death knell for central bank independence
The growing policy crisis caused by central banks taking on roles beyond price stability and lender of last resort is not down to 'independence' – as the BoJ case points out
Fed stress tests reveal potential for losses of $460 billion
Stress tests show banks would suffer heavy losses if another financial crisis hits, with some hovering very close to the US Federal Reserve’s minimum core capital requirements – and one falling below
Fed’s Beige Book optimistic on labour market
Economic expansion still ‘modest or moderate’ in most Federal Reserve districts; labour market conditions improving but hiring is restrained
Philadelphia Fed president demands end to QE
Charles Plosser says asset purchases should be phased out gradually and halted before the end of the year; ‘meagre benefits’ are outweighed by threat to price stability
Top US regulators restless over too-big-to-fail
Fed’s Jerome Powell and FDIC’s Martin Gruenberg stress the need for ongoing progress in bid to eliminate ‘too-big-to-fail’ problem
Bernanke evaluates long-term interest rates
Federal Reserve chair Ben Bernanke expects long-term interest rates to rise gradually; says upside and downside risks to rate level are 'roughly symmetric'
Yellen says monetary easing needed to support labour market
Federal Reserve vice-chair says labour market should take centre stage in Fed’s monetary policy; does not believe asset purchases are threatening financial stability
Stockton’s Bank of England review offers forecasting lessons for central banks
The Stockton review of the Monetary Policy Committee at the Bank of England offers valuable lessons for central bankers and economists around the world.
Deutsche Bundesbank’s losing struggle in European integration battle
The Deutsche Bundesbank was once the cornerstone of European monetary stability but has become little more than a bargaining chip for politicians negotiating European integration.
State Bank of Vietnam needs a single mandate not independence
Lessons from South Korea, Japan and the US indicate a single mandate would benefit the State Bank of Vietnam more than an IMF call for legal independence.
Bernanke commits to continuing asset purchases
Fed chairman says benefits of ongoing monetary policy stimulus are clear; urges US government to delay bulk of impending spending cuts
Central bank independence: more myth than reality?
Crisis responses are placing a heavy burden on many central banks. But there is no evidence showing that legally independent central banks have a better track record in monetary policy
Fed’s Powell and Rosengren hit back at ‘fiscal crunch’ research paper
Research suggests Fed is constrained by precarious US finances, but Fed governor and president offer alternative conclusions
Fed’s Tarullo presses regulators for speedy reforms
Federal Reserve governor Tarullo urges Basel Committee to implement ‘Sifi surcharge’ within a year; Boston Fed president Rosengren says surcharge alone not enough
FOMC members 'undecided' over further asset purchases
Federal Open Market Committee displays more uncertainty over when to halt asset purchase programme; wary of buying more securities but scared of ending purchases too soon
Fed paper examines costs of trend inflation variance
Study finds an increase in the volatility of trend inflation imposes a modest welfare cost on the economy
Fed’s Tarullo lays out regulatory priorities for 2013
Federal Reserve governor highlights a number of regulatory efforts planned for the coming year; says US is ahead of its peers in introducing a bank resolution framework
Fed presidents back money market fund reform
Regional federal reserve bank presidents say money market fund reform needed to increase resilience and reduce susceptibility to runs, despite SEC objections
Philadelphia Fed president wants forward guidance in ‘normal times’
Charles Plosser says helping the public understand how the Fed sets policy in normal times will make forward guidance at the zero lower bound more effective