News
WSJ | Fed Unlikely to Trim Bond Buying in October
The government shutdown might be over, but the long-running drama about when the Federal Reserve will start scaling back its $85 billion-a-month bond-buying program might now last longer.
CNBC | Fed won't slow easing any time soon, thanks to Congress
Thanks to the dysfunction in Washington, many Fed watchers now see the first taper in the Federal Reserve's bond buying coming sometime later than expected—certainly not before December but probably in the first quarter. Wall Street had been geared up for the start of a pullback from the easing program sometime this quarter, but a more sluggish economy and fiscal uncertainty make that less likely.
Econ Comments & Analysis
Market Watch | Fed's Lacker: Bank living wills need more work
More work is needed before markets and regulators can have confidence in resolution plans for the largest U.S. banks, but the process is critical to end the "too big to fail problem," said Jeffrey Lacker, the president of the Richmond Fed, on Friday.
Real Clear Markets | Our Great Conundrum: An Unbroken String Of Inflation
In February 2000, the Federal Reserve reported to Congress that it was changing its preferred measure for inflation. When we think of inflation the CPI springs to mind without much effort. It has been ingrained in the mainstream economic psyche for decades, and thus has become synonymous with the concept. Even the federal government statutorily uses the CPI to calculate cost of living and other monetary changes.
CATO | The Real Problem Isn’t Janet Yellen, It’s the Conceit That Is the Fed Itself
When President Barack Obama nominated Federal Reserve vice chairman Janet Yellen to take over as Fed chairman after Ben Bernanke departs in January, the markets purred a sigh of relief. The Fed’s adherence to ultra-low interest rates and quantitative easing to boost risk taking and asset prices is now expected to continue for at least another year and most likely until the end of 2015. That path could prove costly.
Blogs
WSJ | Inflation Data Could Be Error-Prone for Months
There’s been a lot of focus on what impact the government shutdown will ultimately have on the timing and accuracy of the Labor Department’s employment data. But Federal Reserve officials care a lot about inflation, too, and the shutdown will have a long-lasting impact on that data, researchers at the Federal Reserve Bank of Cleveland said in a note Thursday.
