Pressure builds within Fed to signal new policy course - News and Current Events | futures io social day trading
futures io futures trading

Pressure builds within Fed to signal new policy course
Updated: Views / Replies:261 / 0
Created: by kbit Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 100,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Thread Tools Search this Thread

Pressure builds within Fed to signal new policy course

  #1 (permalink)
Elite Member
Aurora, Il USA
Futures Experience: Advanced
Platform: TradeStation
Favorite Futures: futures
kbit's Avatar
Posts: 5,886 since Nov 2010
Thanks: 3,304 given, 3,334 received

Pressure builds within Fed to signal new policy course

Pressure is building within the Federal Reserve for officials to move as early as next month to more clearly acknowledge improvements in the U.S. economy and lay the groundwork for the central bankís first interest rate hike in nearly a decade.

According to some U.S. central bankers and their close advisers, signs of economic resilience and growing anxiety about the risks of holding rates too low for too long have set the stage for an intense debate over rewriting their policy statement.

It is uncertain whether officials will use their upcoming meeting on Sept. 16 and 17 to scrap key parts of the language they have been using to keep rate-hike expectations at bay, but if they do not, October looks like a good bet.

"Some shift of language is on the table, and should be on the table in the coming meetings," Atlanta Federal Reserve Bank President Dennis Lockhart, a policy centrist, said in an interview. While a handful of officials have argued for prompt changes, Lockhart said he thinks September "is still early."

Adding, dropping or adjusting even a few words in the Fed's post-meeting statement is a potentially treacherous task. A miscommunication by the world's most powerful central bank could shock financial markets globally and, in a worst case, reverse the economic recovery it seeks to foster.

At issue is a 5-month old pledge from the Fed to keep benchmark rates near zero for a "considerable time" after it shelves an asset-purchase program in October.

Another line that has drawn internal objections is the month-old statement that "significant" slack remains in the labor market, a suggestion that not even strong job growth and a further drop in unemployment will prompt a tightening of policy any time soon.

"The language puts us in a box that I think is not a good box to be in," Philadelphia Fed President Charles Plosser told Reuters on the sidelines of the central bank's annual Jackson Hole conference.

Plosser dissented against the "considerable time" line at the Fed's last meeting in late July. Like fellow hawks at the central bank, he said he prefers "very simple, data-dependent" guidance that avoids timelines or calendar dates.


Aside from an unpredictable market reaction, Fed Chair Janet Yellen will have to contend with a potentially uncooperative world economy that could upend U.S. economic progress.

During the Jackson Hole meetings, central bankers from England, Europe and Japan described how their economies were healing more slowly than expected - and in Europe's case, at risk of slipping backward.

Worse than a bout of inflation, Yellen does not want to raise rates only to have to shift gears if the economy slows. That means any change in language is not likely to mean rate hikes will come earlier or occur faster than currently envisioned.

As it stands, investors and the core of Fed policymakers expect to hold off raising rates until the middle of next year.

But a rhetorical shift would mark the start of a delicate transition as the Fed plans how to close the book gently on six years of near-zero interest rates. At some point, it needs to shed key phrases it has used to describe the slack in the economy and prepare markets for the return to a more normal monetary policy.

In an address to fellow policymakers on Friday, Yellen gave more voice than usual to the possibility that economic conditions may tighten faster than expected. Coupled with increasingly loud calls from Fed hawks for a shift in course, her remarks suggested change was afoot.

"With a few exceptions, the data are mostly coming in to push everybody in a slightly more hawkish range," said former Fed Vice Chairman Alan Blinder, a professor at Princeton University who attended the conference. "The whole range is moving, so the midpoint is moving, and (Yellen) is moving."

Minutes from the Fed's last meeting in July revealed that several participants disagreed with parts of the statement, including the description of the degree of labor market slack and the likely timing of a rate hike. Those voices are only likely to get louder.

In her speech on Friday, Yellen nodded to the possible need to shift the tone soon.

"With the economy getting closer to our objectives, the FOMC's emphasis is naturally shifting to questions about the degree of remaining slack," she said of the Fed's policy-setting committee. "And thereby to the question of under what conditions we should begin dialing back our extraordinary accommodation."

Pressure builds within Fed to signal new policy course | Reuters

Reply With Quote


futures io > > > > Pressure builds within Fed to signal new policy course

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Upcoming Webinars and Events (4:30PM ET unless noted)

July Journal Challenge - $500 in Amazon Gift Cards!


AXESS Trader: Powerful Cloud Based Trading Platform w/GFF Brokers

Jul 17

TBA: FuturesTrader71 w/Morad Askar

Elite only

Similar Threads
Thread Thread Starter Forum Replies Last Post
Dark pool probe builds pressure on Barclays boss kbit News and Current Events 0 July 13th, 2014 05:03 PM
Some Fed Members Fear Monetary Policy Effects Quick Summary News and Current Events 0 April 10th, 2013 10:00 AM
Fed Governors Respectfully Disagree in Policy Spat Quick Summary News and Current Events 0 April 3rd, 2013 04:10 AM
How Fed Policy Has Chased Investors Out of Market Quick Summary News and Current Events 0 March 23rd, 2013 02:00 AM
Jobless Claims Move Up; Inflation Pressure Builds Quick Summary News and Current Events 0 February 21st, 2013 10:20 AM

All times are GMT -4. The time now is 06:31 PM. (this page content is cached, log in for real-time version)

Copyright © 2018 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432,
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2018-07-17 in 0.10 seconds with 14 queries on phoenix