Federal Reserve System
Inflation targeting insufficient: China’s Zhou
People’s Bank of China’s Zhou Xiaochuan says targeting low inflation alone is inadequate, particularly in light of the financial crisis
Fed’s Kohn on the links between macro and financial stability
Federal Reserve’s vice chairman notes crisis has illustrated two key lessons on the relationship between macroeconomic and financial stability
World’s biggest bond fund cuts back on gilts and treasuries
Pimco says it will reduce its holdings of US and UK government debt on concerns over rising debt and the withdrawal of asset purchase programmes
Bernanke: low rates didn’t spur housing bubble
Federal Reserve’s Ben Bernanke says direct linkages between low federal funds rate and rise in house prices weak; fix regulation not monetary policy
East Asia will take its cue from Fed: Indonesia deputy
Budi Mulya, the deputy governor of Bank Indonesia, says it is crucial the Fed err on the side of caution in withdrawing accommodative measures; East Asia-Pacific region will watch it closely
Crisis down to global imbalances: Obstfeld, Rogoff
Maurice Obstfeld and Kenneth Rogoff say global imbalances key source of crisis
Fed does not respond to oil price shocks: CEPR paper
CEPR paper argues against the standard view that Fed’s policy responses to oil-price-led inflation caused economic instability
Old mortgage model is dead: Fed’s Duke
Federal Reserve’s Elizabeth Duke warns of the ghost of homeownership yet to come
Former Fed economist calls for more stimulus
Ex-Federal Reserve official says focus must be on providing up to $6 trillion more monetary stimulus rather than exit strategies
Exit from extraordinary measures “straightforward”: NY Fed’s Sack
Brian Sack, the New York Fed's markets chief, says creating emergency facilities was harder than withdrawing them will be
Fed data points to rise in GSE holdings
Data show official sector viewing agency debt more favourably; marks about-turn from autumn 2008 sell-off
NY Fed communications head joins Thomson Reuters
New York Federal Reserve’s executive vice president for communications departs for information company
Fed behaviour matches optimal target rule
A discussion paper on the Fed and monetary policy rules argues that an optimal target rule, rather than the Taylor rule, best explains the central bank’s policy behaviour
Fed tiptoes further towards exit
New York Federal Reserve says it will make small-scale reverse repurchase operations in order to test strand of exit strategy
Linking banks, bonds, and firm size
San Francisco Fed paper builds a model to see the effects of bank vs. bond financing on firm size
Fed toughens rules on directors' links with banks
Federal Reserve amends policy on regional directors’ holdings in banks following Friedman resignation
The relationship between deregulation and firm volatility
Federal Reserve paper finds evidence from the 80s suggesting volatility declined as a result of interstate deregulation
Zero lower bound may have cost US $1.7 trillion
San Francisco Fed’s John Williams argues zero bound on interest rates has had negative effect and could continue to do so
House committee backs Fed audit bill
House Financial Services Committee backs Ron Paul’s call for greater powers to audit the Federal Reserve; Barney Frank attempts block
Fed’s Bullard: rates could stay on hold until 2012
President of St Louis Federal Reserve says rates would remain at record lows for next two-and-a-half years if behaviour after previous recessions is repeated
Fed counters criticisms of AIG rescue
Federal Reserve defends itself against charges of mishandling American International Group’s bailout after damning report from Tarp overseer
Fed’s Kohn rejects bubble claims
Fed deputy acknowledges carry trade but dismisses fears low rates are stoking asset-price bubbles
Shirakawa cautions on carry trade
Bank of Japan’s governor becomes latest official to warn on dangers of low rates in advanced economies; notes balance-sheet adjustments will impact efficacy of monetary policy
US policy threatens emerging markets: China’s top regulator
Chairman of China’s regulator says weak dollar and low rates are dangerous to the global economy; echoes recent comments from top Japan, HK officials