News
Bloomberg | Less Tapering Becomes Tighter Credit No Matter What Fed Says
Federal Reserve Chairman Ben S. Bernanke sent bond yields a percentage point higher just by talking about adding stimulus at a slower pace. The rout serves as a warning to monetary policy makers that their exit from record accommodation won’t be easy to control.
Bloomberg | Consumer Prices in U.S. Rose Less Than Forecast in August
The cost of living in the U.S. rose less than forecast in August, a sign it will take time for inflation to reach the Federal Reserve’s goal.
Econ Comments & Analysis
Daily Caller | The Fed needs rules, not politics
When Montana Democratic senator Jon Tester announced last Friday that he would vote against Larry Summers’s putative candidacy for Fed chairman if it came before the Senate Banking Committee, he put a dagger in Summers’s Fed career before it even started. Tester would have made it four Democratic nay votes in committee, and it is highly unlikely that Republicans would have taken up the slack to push through a Summers nomination.
NY Post | Bell is tolling for whoever succeeds Big Ben
The central bank’s policymaking Federal Open Market Committee meets today and tomorrow to decide what to do next. The betting is that the FOMC will pull back slightly on quantitative easing — a process known as “tapering” — and buy fewer government and mortgage bonds from the financial markets. The feeling is that the Fed will stop the stimulus altogether sometime next year.
Mercatus | Money Market Fund Reform: Amendments to Form PF
We appreciate the opportunity to comment on the Securities and Exchange Commission’s June 13, 2013 notice of proposed rulemaking “Money Market Fund Reform; Amendments to Form PF” (SEC 2013 MMF Proposals).
CATO | A Flawed Approach to Monetary Policy
The 2008-09 financial crisis greatly expanded the power of the Federal Reserve under Chairman Ben Bernanke. Now that his term is ending, the focus is on the choice of a successor. That choice, however, diverts attention from a more serious issue: namely, the institutional flaws in the present U.S. monetary regime and its bias against capital freedom.
Blogs
WSJ | IMF Publishes Guide on Financial-System Oversight
The International Monetary Fund Monday made another bid to establish itself as the world’s financial-system watchdog.
WSJ | Regulators Should Draw a Line Between Finance and Commerce
The Federal Reserve, Congress and some of the world’s largest financial institutions are about to tackle the existential issue of what a bank is.
