Daily Archives: November 22, 2011

Robin Harding

For me, the most interesting passage in the November Fed minutes was:

“The Chairman asked the subcommittee on communications to give consideration to a possible statement of the Committee’s longer-run goals and policy strategy, and he also encouraged the subcommittee to explore potential approaches for incorporating information about participants’ assessments of appropriate monetary policy into the Summary of Economic Projections.”

A host of communication options were discussed in the minutes but these are the only two that the Chairman referred back to the subcommittee on communications (vice chair Janet Yellen, governor Sarah Bloom Raskin, Charles Evans of Chicago and Charles Plosser of Philadelphia). That’s a strong signal of the direction that debate is going. Read more

Claire Jones

Sir Mervyn King has a rival in the banker-bashing stakes.

Robert Jenkins, an external member of the Financial Policy Committee, on Tuesday lambasted the industry’s attempts to water down regulation as “dumb” and “dishonest”.

A few snippets: Read more

Claire Jones

When the Bank of England’s latest fan charts showed inflation falling way below the 2 per cent target, analysts were quick to conclude that the MPC, or at least De La Rue, “was already greasing the wheels of the money printing presses” in expectation of more QE.

The Bank’s central forecast shows inflation falling to 1.3 per cent by the end of 2013, which would suggest that further asset purchases are indeed on the way.

But, if the views of Paul Tucker, deputy governor for financial stability, chime with those of his fellow MPC members, then more QE may not necessarily be a dead cert. Or at least that the scale of the additional easing may be far smaller than analysts expect. Read more

Claire Jones

The Bank of England’s latest systemic risk survey is a predictably grim read.

The interim Financial Policy Committee, which meets on Wednesday, will find little to cheer them in the poll of the UK’s risk managers.

But the survey makes slightly better reading for the Monetary Policy Committee. Read more