Financial markets ought to sell off no matter what the U.S. Fed does about tapering, but almost certainly they won’t.
Financial markets ought to sell off no matter what the U.S. Fed does about tapering, but almost certainly they won’t.
Asset buying and forward interest rate guidance are separate monetary policy tools to the Fed. How to make markets better understand exercises policymakers greatly.
U.S. Federal Reserve nominee looks every part the head of a central bank she is soon to be.
When she appears before the Senate’s Banking Committee on Nov. 14, it will be as the candidate of continuity.
In the week that Twitter went public at a stratospheric valuation the U.S. Fed set the stage for yet more aggressive monetary policy. Both events will bear some bitter fruit.
The political fight over the U.S. government’s budget and debt ceiling looks likely to delay the U.S. Fed’s start to winding down its massive stimulus program well into the New Year.
The Yellen era will feature more of the same: the same monetary policy and the same unanswered questions.
Maintaining financial stability along with maximum employment and price stability makes monetary policy more complex and communicating it even more so.
Donald Marron, director of Economic Policy Initiatives at the Urban Institute and a former member of the President’s Council of Economic Advisors, believes Janet Yellen’s nomination is a vote for continuity.
Larry Summers has dropped out leaving Janet Yellen as the new front runner, but there are other candidates under consideration to succeed Ben Bernanke when he steps down as chairman of the U.S. Fed in January.