Federal Reserve System
Minneapolis paper finds stable Phillips curve in regional data
Researchers find relationship between unemployment and inflation holds in regional data but breaks down at national level; suggest this could be used for policy-making
People: San Fran Fed picks new COO; Malaysia appoints Sharia Advisory Council
New COO takes over from John Moore, who retires after 33 years at the Fed; Shariah Advisory Council chosen as final authority in disputes over Sharia-compliant finance
Fed retains credibility following forward guidance, says Dutch paper
Dutch researcher says the Federal Reserve’s forward guidance resulted in a ‘significant reduction’ in Treasury yields as a whole, but did not change the relationship between real and nominal yields
Senior Fed staff consider further stimulus
Two of the Federal Reserve’s top economists have produced papers outlining the merits of ‘highly accommodative’ monetary policy, including a lower unemployment threshold
Fed has moved ‘considerably closer’ to flexible inflation target, paper finds
Federal Reserve researchers say the central bank has moved closer to a flexible inflation targeting framework through a series of steps taken to improving the communication of its policy objectives
Fall in OECD inflation highlights advanced economy monetary policy dilemmas
New OECD figures show lower annual inflation rates despite Japanese CPI turning positive; pressure mounts on ECB and Fed to counteract trend, but analysts unsure with what tools
Fed reaction function shift helped support recovery, research finds
NY Fed research finds markets viewed ‘calendar’ forward guidance as a more dovish approach to policy, supported by comments from FOMC members; ECB and BoE both denied such a move in own guidance
Fed’s Powell downplays QE impact on emerging markets
Governor admits Fed policy has played a part in capital flows to and from emerging markets, but argues other factors are more important; follows fresh complaints from Asian economies
Boston Fed president wants low rates well into future
Boston Fed president Eric Rosengren says Federal Reserve should not raise its short-term interest rates until there is ‘much more progress’ towards full employment and its inflation target
Federal Reserve reveals new, tougher stress tests
Details of stress tests for 2014 include scenario based on severe global recession, with some banks facing additional criteria; tests will be applied to 12 more banks than before
Fed paper trials new model for estimating trend inflation
Researchers at the Federal Reserve generate lower estimates of trend inflation in advanced economies by using a multivariate model; still struggle to outperform random walk forecasts
US Senator vows to block Yellen nomination
Republican Rand Paul - son of long-time Fed critic Ron Paul - says he intends to fight confirmation of Janet Yellen as the next Fed chair unless monetary policy is subjected to Congressional scrutiny
Leading central banks make emergency swap lines permanent
Six leading central banks are leaving bilateral swap agreements introduced during the financial crisis in place until further notice; US dollar liquidity-providing operations will continue as normal
NY Fed's Checki to retire; Minneapolis hires new head of research
New York Fed head of international affairs ends 46-year tenure, while acting communications head wins permanent post; Minneapolis Fed names new research director
Fed targets tougher LCR for US banks
Federal Reserve proposes a liquidity coverage ratio for country’s largest financial institutions that goes above and beyond the Basel III minimums
Taper surprises could cause more volatility, warns Mexico deputy
Structural reforms should put the Mexican economy on a stronger footing, deputy governor Manuel Sánchez says, but warns economic rebound could suffer from tapering without stronger US growth
Fed heavyweights warn new bank resolution laws won't end ‘too big to fail'
Dudley, Lacker and Tarullo say 'single point of entry' framework under 'Title II' provision is important but inadequate; FOMC members call for long-term debt requirement for Sifis
Central Bank of Chile cuts interest rates for first time in 18 months
Central bank cuts rate 25bp to 4.75%, amid slowing demand growth and below-target inflation; analyst says inflows, not outflows, biggest concern despite current account deficit
Fed’s Beige Book reveals ‘modest’ employment growth
Summary of the economic conditions across the 12 Federal Reserve districts finds both employment and economic activity were ‘modest’ in September, while price pressures were ‘limited’
San Fran economists suggest labour market leading indicators
Economists identify the six best indicators for assessing the degree to which labour market conditions are improving; find the existing rate of recovery will continue ‘if not accelerate’ in coming months
Fed’s Powell insists FOMC communication remains credible
Jerome Powell defends forward guidance on asset purchases after fellow FOMC member Plosser says September decision undermined its credibility; Eric Rosengren lays out communication challenges
Opposing Fed camps dig heels in on QE
Minutes from the FOMC’s September meeting highlight the deep and persistent divide between its participants; Obama points to Yellen’s ability to build consensus and personal strength
New $100 bill the ‘most sophisticated piece of currency' to date, says Fisher
Most counterfeited US bill is embellished with new security features to 'deter bad guys' and protect consumers and businesses from losses
Janet Yellen set for nomination as Fed chair
US President Barack Obama expected to nominate Janet Yellen as Ben Bernanke’s successor; would be first female appointment to top job