The FOMC statement is out. There was no policy change, but it shows that the number of dissenters has been cut from three to one.
At the last vote, Richard Fisher, Narayana Kocherlakota, Charles Plosser all dissented, on the grounds that they did not support the additional measures to support easing. All three had also dissented at the previous meeting. Read more
Officials the world over are keen on macroprudential policy. But it’s far from obvious what tools macroprudential policymakers should be given. It’s also not clear the degree to which central banks should be responsible for exercising the macroprudential mandate.
Fear not. The IMF released a guide on Tuesday on the pros and cons of different institutional arrangements for macroprudential policymaking. What the guide shows is that the degree to which central banks are responsible boils down to how officials weigh up two sets of risks: those stemming from a lack of accountability and those caused by groupthink. Read more
A few points to look out for from the Fed today. We should get the statement at 12.30 ET, followed by the FOMC forecasts at 14.15 ET, when Ben Bernanke will start talking.
Forecasts – The first update to the FOMC’s economic forecasts since June is likely to be the most important information released today. We will also get the Fed’s first forecasts for 2014. Read more
Sir Mervyn King never misses an opportunity to tell us of the need for the global economy to rebalance. And marking the release of the new £50 note, which features Matthew Boulton and James Watt, proved no exception.
The new £50 note. Image by Bank of England.
This from the governor: