News Regulators 

Janet Yellen deserves a second term as Fed chair

“Gary Cohn, a senior Trump economic adviser, has no monetary-policy experience, and his performance developing a tax-reform framework for the Trump administration does not recommend him” reports washingtonpost.com. He should pick the person who already has a proven track record of competence and care in the conduct of the nation’s monetary policy: current Fed Chair Janet L. Yellen.The Fed has cautiously but steadily raised interest rates and recently announced the gradual unwinding of the asset purchasing program it undertook during the Great Recession.Despite new regulations and tightening monetary policies, the…

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Markets News Regulators 

Dollar rises after Trump talks tax reform; Yellen set to meet about renomination

“The ICE U.S. Dollar Index DXY, +0.16% which gauges the buck against six other currencies, was up 0.3% at 93.325, and the WSJ Dollar Index BUXX, +0.24% which measures greenback against 16 rivals, tacked on 0.3% to 86.51” writes Markets Reporter for marketwatch.com. The greenback also tipped higher amid reports that Trump is looking to interview Janet Yellen for a potential second term as Federal Reserve chairwoman.One U.S. dollar last bought C$1.2526, compared with C$1.2467 late Friday. Source: marketwatch.com Share This:

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News Regulators 

One easy explanation for Fed Chair Yellen’s low inflation ‘surprise’ is staring her in the face

“Despite only four hikes in just under two years the Fed has subdued inflation expectations and therefore inflation.”” writes Pedro Nicolaci Da for businessinsider.com. That makes it rather curious that Fed Chair Janet Yellen and her colleagues have said they are “puzzled” by the pattern of low inflation.Central bankers firmly believe inflation expectations are a good predictor of future inflation, making it a crucial indicator on their economic dashboard.”Job growth, wage growth, inflation and inflation expectations are all likely somewhat lower than they would have been had the FOMC not…

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News Regulators 

As The Quartet Breaks Up, Central Banking Leadership Flux Looms

“There are unfinished reforms in China and Europe, while the rise of nationalism could erode central bank independence” writes Leika Kihara for reuters.com. But it is also a fact of life.” But the odds now seem that by early next year the world’s two largest economies will have new and potentially more inward looking, central bank leadership.It was a “farewell concert” of sorts for a group whose tenure has transformed central banking.China’s president is considering a provincial official to succeed Zhou Xiaochuan, a veteran policymaker who has led the central…

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News Regulators 

Fed’s Janet Yellen Says the Economy Remains in Good Health

“She added that she saw little evidence soft inflation in the United States is the result of a change in the global economy” writes Binyamin Appelbaum for nytimes.com. Some Fed officials regard weak inflation as evidence the Fed should retreat more slowly from its stimulus campaign.She said anticipation of changes like tax cuts has buoyed measures of consumer and business confidence, but there is little evidence so far of increased investment and investment. Source: nytimes.com Share This:

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News Regulators 

Yellen sounds upbeat note on economy and inflation prospects

“Chronically low inflation can depress economic growth because consumers typically delay purchases when they think prices will stay the same or even decline” writes The Associated Press for seattletimes.com. The Fed chair’s comments suggested that the central bank will soon resume raising interest rates to reflect the strengthening economy.Speaking to an international banking seminar, Yellen acknowledged that the persistence of undesirably low inflation this year has been a surprise.The Fed seeks to manage interest rates to achieve stable prices, which it defines as annual inflation of 2 percent. Source: seattletimes.com Share…

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News Regulators 

Steven Mnuchin: Trump hopes to pick Fed chairman in the next month

“Trump’s economic adviser, former Goldman Sachs president Gary Cohn, is also thought to be in the running, as are former Fed governor Kevin Warsh and current Fed governor Jerome Powell” writes Joseph Lawler for washingtonexaminer.com. President Trump is hoping to make a decision on a nominee for Federal Reserve chairman in the coming weeks, his Treasury Secretary said Thursday.Trump has reportedly narrowed down the possible nominees for the top economic policy-making spot in the world to a handful of candidates. Source: washingtonexaminer.com Share This:

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News Regulators 

Fed’s low inflation mystery could be explained by one simple piece of tech

“Something that came into style with the Reagan administration and was later forgotten may help solve the low inflation mystery” writes Bruce Yandle for washingtonexaminer.com. The Fed’s bright line for inflation heartburn is marked by sustained price level growth around 2 percent annually.But meanwhile, the nation is experiencing a growing labor force and low levels of unemployment, which should ordinarily signal more inflation.Yellen acknowledged that with all their collective wisdom, Fed economists have no consistent explanation as to why inflation is undershooting the Fed’s objective.To an economist, smartphones can be…

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News Regulators 

Yellen: Fed committed to easing regulations on smaller banks

“Louis, Yellen said the proposed new rule on capital requirements was the latest effort by regulators to ease burdens on smaller banks” reports foxbusiness.com. Yellen has defended the tougher regulations imposed following the 2008 banking crisis but has said there is room to ease regulatory burdens on smaller banks.She says the Fed is seeking to increase the number of community banks eligible for less frequent examinations and loosen requirements for property appraisals on commercial real estate transactions.Federal Reserve Chair Janet Yellen said Wednesday that the Fed is committed to making…

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Futures News Regulators Stocks 

Futures point to a weak open on Wall Street, as data, Yellen remarks set to dominate discussion

“Dow Jones industrial average futures fell 21 points, while S&P 500 and Nasdaq 100 futures declined 2.5 points and 11.25 points, respectively” writes unknown author for cnbc.com. U.S. stock index futures pointed to a relatively flat open on Wednesday, as investors look to key data and a speech by a leading member of the U.S. central bank. Source: cnbc.com Share This:

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