Federal Reserve

Founded in 1913, the Federal Reserve is the central banking system for the United States.

Fed minutes show asset purchases to end in October

Fed policymakers, led by Janet Yellen, are near agreement on a plan to manage interest rates in the future, the minutes show. Photo: AP

The Federal Reserve has begun detailing how it plans to ease the US economy out of an era of loose monetary policy, indicating it will end its asset purchases in October and appearing near agreement on a plan to manage interest rates in the future, according to minutes of

Thursday, 10 July, 2014, 11:45am

Fed subjects big foreign banks to same standards as US ones

Foreign banks with sizeable operations on Wall Street such as Barclays had pushed back hard against the plan because it means they will need to transfer costly capital from Europe. Photo: Reuters

The United States Federal Reserve adopted a tight new rule for foreign banks on Tuesday to shield the US taxpayer from costly bailouts, ceding only minor concessions despite pressure from abroad to weaken the rule.

20 Feb 2014 - 12:52am

Easy come, easy go as emerging markets discover with US Fed tapering

Easy come, easy go as emerging markets discover with US Fed tapering

During the financial crisis, the major emerging markets escaped the damage from the United States and European Union relatively unscathed. Not any more. The rout in the capital markets of the emerging economies in the past week is a reminder that many of them face serious problems from heavy government debt to large current account deficits. In a sense, it was a continuation of the mayhem they experienced during last summer, when talks about tapering by the US Federal Reserve were first raised.

29 Jan 2014 - 4:09am

US jobs figures show Yellen has her work cut out for her

Janet Yellen denies the Fed’s programme of quantitative easing has simply made the rich richer. Photo: AFP

Some of the problems facing the world's biggest economy and the person about to take the second-biggest job running that economy were revealed in the US jobs report on Friday.

15 Jan 2014 - 1:24am 1 comment

'Meaningful' job gains led Fed to trim bond purchases, minutes show

A television screen shows the Federal Reserve's decision on bond purchases after its policy meeting last month. Photo: AP

The United States Federal Reserve agreed last month to modestly reduce its bond purchases because of improvements in the job market that many Fed members felt would be sustained.

9 Jan 2014 - 11:47pm

Yellen's delicate balancing act as Fed chief

Janet Yellen

It is now formally confirmed. On February 1 Janet Yellen, 67, will become the first woman to chair the US Federal Reserve. Her endorsement by the US Senate was never in doubt. What set it apart more than her gender was that she was confirmed with the least support on record. The reasons include the absence of some senators delayed by weather disruption of flights. But the vote also reflects a number of other challenging factors that will help shape her legacy.

9 Jan 2014 - 4:59am

How US tapering and politics will shape growing Asia

Transition time

In the aftermath of the 2008 global financial crisis, two key phrases that conveyed the essence of the recovery strategy were "unconventional monetary policy" and "the new normal". The developed world would pump up credit and lower interest rates to try to resuscitate failing companies and their economies. These measures would ease off once things stabilised, but there would be no return to prior years of heady growth.

9 Jan 2014 - 4:59am

Split vote of US Senate on Janet Yellen confirmation signals politicisation

Janet Yellen is the first woman to run the US Federal Reserve.

Janet Yellen's confirmation as chairman of the Federal Reserve with the least Senate support on record shows that the US central bank still faces intense political scrutiny six years after the financial crisis.

7 Jan 2014 - 11:37pm 1 comment

Warning sounded on taper outflows

Financial Secretary John Tsang Chun-wah said there had been no noticeable outflow since tapering was announced but advised Hong Kong residents to exercise prudence when taking out loans as interest rates would rise. Photo: K. Y. Cheng

Hong Kong authorities have warned banks and investors of liquidity outflows and asset price volatility after the United States Federal Reserve announced tapering its bond-buying programme early next year while maintaining low interest rates as the American economy continues to improve.

20 Dec 2013 - 3:18am 1 comment

US federal reserve cuts bond-buying but stresses easy policy

U.S. Federal Reserve Chairman Ben Bernanke held his final planned news conference to explain the Fed's newly announced plan. Photo: Reuters

The U.S. Federal Reserve announced plans to trim its aggressive bond-buying program but sought to temper the long-awaited move by suggesting its key interest rate would stay lower for even longer than previously promised.

19 Dec 2013 - 4:45pm 3 comments

Isn't it time for the Federal Reserve to burst some bubbles?

Janet Yellen. Photo: Reuters

Don't fight the Fed. That's the motto professional bond traders have long lived by. But since the onset of the global financial crisis, a more proactive and positive one for equities traders has been: embrace the Fed.

22 Nov 2013 - 2:16am 1 comment

Fed likely to trim bond buying in coming months

Fed members wrestled with how to assure investors that even after it cuts back on the US$85 billion a month in bond buys, the Fed still intends to keep its short-term rate near record lows. Photo: EPA

Members of the US Federal Reserve agreed last month they would likely start reducing their bond purchases in coming months if the US job market improved further.

22 Nov 2013 - 1:48am

Fed's fear of Wall Street distorting global economy

Janet Yellen.

I would skip the bit about Beijing reform. Markets that pay any attention to Beijing's announcements actually dropped a notch when President Xi Jinping said last week that he would more efficiently preserve an inefficient economy but then didn't say quite how.

21 Nov 2013 - 12:01pm 6 comments

Why the Fed-induced rally in Asian emerging markets is petering out

The rupiah is 14 per cent weaker than its May high. Photo: EPA

Investors’ appetite for Asian emerging markets’ stocks, bonds and currencies is spent, and for reasons that go beyond the overriding question of when and how the US Federal Reserve will reverse its loose monetary policies.

5 Nov 2013 - 3:32pm

Fed inaction greases path for equities and other risky assets

Research shows that Fed actions account for nearly 40 per cent of equity market variations. Photo: Reuters

Gorge on Halloween candy, Thanksgiving turkey and risk: the Fed has declared an early and extended holiday.

The US Federal Reserve left policy unchanged at its meeting on Wednesday, maintaining its US$85 billion per month schedule of bond buying and making only a few changes to the accompanying statement.

31 Oct 2013 - 3:11pm 1 comment