News
Bloomberg | Fed’s $4 Trillion in Assets Draw Lawmakers’ Scrutiny
The Federal Reserve’s balance sheet is poised to exceed $4 trillion, prompting warnings its record easing is inflating asset-price bubbles and drawing renewed lawmaker scrutiny just as Janet Yellen prepares to take charge.
Bloomberg | Consumer Prices Steady in U.S. as Fed Weighs QE Taper: Economy
The U.S. cost of living was unchanged in November, showing it will take time for inflation to approach the level desired by Federal Reserve officials, who begin their policy meeting today.
Bloomberg | U.S. Banks Hit New Stress-Test Hurdle as Fed, Firm Data at Odds
U.S. banks seeking regulatory approval to boost payouts to shareholders next year will face a new hurdle as the Federal Reserve begins making its own projections for lenders’ balance sheets in annual stress tests.
Econ Comments & Analysis
Fortune | Why a Fed taper will be good for the economy
The US Federal Reserve is one of the most powerful bodies on the planet today, able to shake global markets with the force of a single word: Taper. Analysts shudder, investors wail, bond yields spike, and stocks collapse whenever the mere possibility of a taper arises. And yet, the fear that the world will end if the Fed ratchets down its $85 billion-a-month bond buying program is mostly unfounded.
Blogs
WSJ | Vital Signs: Where Inflation Calls Home
Inflation news continues to be no news. Total consumer prices are up just 1.2% in the year ended in November, while core prices that exclude food and energy are up 1.7%. Both rates are below the 2% target set by the Federal Reserve.
WSJ | Key Inflation Measures Still Weak as Fed Meets
Both of the government’s consumer inflation measures are trending well below the Federal Reserve’s 2% target, complicating the central bank’s decision on whether to curtail its easy-money policies this week.
