Monday, July 28, 2014


Bloomberg | Yellen Watching What She Eats Would Help Track Prices
The next time Federal Reserve Chair Janet Yellen grabs dinner at her favorite eatery, she might want to take a longer look at the cost of her entrée.
WSJ | Fed's Rate Debate Looks Set to Heat Up
Federal Reserve officials will likely move closer to ending their purchases of mortgage and Treasury bonds at a policy meeting this coming week and discuss when and how to raise interest rates.

Econ Comments & Analysis                                                                                            
WSJ | The Danger of Too Loose, Too Long
First, we are experiencing financial excess that is of our own making. There is a lot of talk about "macroprudential supervision" as a way to prevent financial excess from creating financial instability. But macroprudential supervision is something of a Maginot Line: It can be circumvented. Relying upon it to prevent financial instability provides an artificial sense of confidence.
CRS | Federal Reserve: Oversight and Disclosure Issues
Critics of the Federal Reserve (Fed) have long argued for more oversight, transparency, and disclosure. Criticism intensified following the extensive assistance to financial firms provided by the Fed during the financial crisis. In 2010, the identities of borrowers were publicly disclosed for the first time. Recently, critics have sought a Government Accountability Office (GAO) audit of the Fed.

WSJ | Fed Forward Guidance Works, Sometimes Better Than Others: IMF
The Federal Reserve’s various efforts at honing its low-rates message have been successful at keeping borrowing costs down by giving investors greater clarity about the likely path of policy, according to the International Monetary Fund.
WSJ | IMF Lays Out Own Fed Exit Strategy
Fed officials are expected to continue discussions about what combination of interest-rate tools to use when they decide it’s time to raise borrowing costs across the economy, and the IMF this week offered a few suggestions.