Front Page

  • 2013-03-27 14:00

    --Open To Idea Of Tapering QE3 But Must Not Hurt Confidence
    --Cld Taper QE3 If See Strong Jobs Momentum With Stronger Growth
    --Inflation Outlook To Be Key To First Interest Rate Hike

    CHICAGO (MNI) - Chicago Federal Reserve Bank President Charles Evans Wednesday said his outlook for the economy means he sees the central bank maintaining its current pace - and mix - of aggressive bond purchases through the end of this year, but said he is open to the idea of tapering so long as that did not create the impression that the Fed was easing back too soon from its support for the recovery.

    Evans, who holds a voting position on the policy-setting Federal Open Market Committee this year, also said the first interest rate hike will depend on the outlook for inflation

  • 2013-03-27 13:52

    - Exposure To EMU Periphery Limited; Banks' Assets To GDP In Normal Limits

    FRANKFURT (MNI) - Malta's banking sector should not be compared to Cyprus's, European Central Bank Governing Council member Josef Bonnici said, dismissing any such comparison as "misleading" in an interview with the Times Of Malta published Wednesday.

    The governor of Malta's central bank played down the significance of the banking sector for Malta's economy, arguing that bank assets were within normal limits at just under 300% of GDP.

  • 2013-03-27 13:21

    FRANKFURT (MNI) - The Cypriot government seriously considered leaving the Eurozone during last week's bailout negotiations with the EU and the IMF, Cypriot Foreign Minister Ioannis Kasoulidis said in a newspaper interview released Wednesday.

    "This was a possibility that we temporarily had taken into serious consideration," Kasoulidis told the German daily Frankfurter Allgemeine Zeitung. He is the first Eurozone government official since the start of the debt crisis to publicly admit that an EMU exit was a serious option.

    Despite the offer of a E10 billion bailout package, Kasoulidis criticized the Eurozone for lack of solidarity.

  • 2013-03-27 13:15

    --Could Ease Further by Lowering Unemployment Target to 5.5% From 6.5%
    --Infl Likely to Remain Close to 2% As Long as Unemp Over 5.5%

    EDINA, MINNESOTA (MNI) - Current monetary policy is not accommodative enough and the Federal Open Market Committee could ease further simply by lowering the unemployment target to 5.5% from 6.5%, which would not jeopardize the 2.0% inflation target, Minneapolis Federal Reserve Bank President Narayana Kocherlakota said Wednesday.

    The outlook for inflation and unemployment both point to the need for more accommodation, which would help the Federal Reserve better fulfill it's dual mandate, Kocherlakota said in a speech prepared for delivery to local Chambers of Commerce outside of Minneapolis.

    Noting that he expects "ongoing

  • 2013-03-27 13:09

    --Pianalto: If Jobs Data Remains Solid, Could See Basis for Slowing Purchases

    WASHINGTON (MNI) - Accommodative monetary policy is still needed, though if the economic data remains solid in the months ahead, there could be a basis for slowing asset purchases, Cleveland Federal Reserve President Sandra Pianalto said Wednesday.

    "If the labor market data continue to be solid, and my economic outlook remains favorable, I could then see a basis for slowing the pace of asset purchases," she said in prepared remarks before the CFA Society in Cleveland.

  • 2013-03-27 12:44

    WASHINGTON (MNI) - New York Federal Reserve Open Market Account Manager Simon Potter, in a speech Wednesday on "The Implementation of Current Asset Purchases," said the central bank's asset purchases have been effective, essentially giving the same arguments that he made in a March 1 speech to primary dealers that buys are effective, have gone off without a hitch, and that the Fed is monitoring markets in case this changes.

    Potter also said that so far "there seems to be little evidence that the current pace of purchases is prompting deterioration in market liquidity or straining the market's ability to deliver securities."

    Fed securities buying supports markets by making financial conditions more accommodative and by removing duration that in turn forces

  • 2013-03-27 12:44

    OTTAWA (MNI) - Canada's economy is expected to begin they year on a soft but positive note, giving back half of December's losses when Statistics Canada releases GDP data Thursday.

    Following a 0.2% drop in December, the Canadian economy is expected to rise a modest 0.1% in January, according to analysts surveyed by MNI.

    Wholesale trade is expected to do much of the heavy lifting in service-producing industries with sales rising 0.3% in the month.

    In the goods producing sector, the manufacturing sector is expected to weigh on growth, however the mining sector is expected to offset these declines marginally.

    Emanuella Enenajor, an economist at the Canadian Imperial Bank of Commerce (CIBC), is more optimistic, expecting GDP to increase 0.2%, rebou

  • 2013-03-27 12:30

    WASHINGTON (MNI) - Reducing energy subsidies, including raising taxes to match the actual costs of energy consumption, could be included in the United States' attempt to fix the deficit, said an International Monetary Fund official Wednesday.

    "One possible source of additional revenue would be further taxation of energy products in the United States," said Director of the IMF Fiscal Affairs Department Carlo Cottarelli, in a conference call focusing on an IMF study of energy subsidies, also released Wednesday.

    This "could be a key component of a fiscal adjustment strategy," said Cottarelli, who pointed out that too low energy taxes are a type of subsidy.

    For advanced economies, Cottarelli explained, "The main component of energy subsidies comes from

  • 2013-03-27 11:54

    PARIS (MNI) - Capital controls imposed by Cyprus will include rules against cashing checks and limits on the use of credit and debit cards in order to prevent massive withdrawals from the country's troubled banks, the Greek newspaper Kathimerini reported on Wednesday.

    The newspaper, citing an official Cyprus government document, said the controls will be in place for seven days and will then be reviewed.

    Use of Cyprus credit and debit cards outside the country will be limited to E5,000 per month and the amounts that Cypriots can take abroad will be limited to E3,000 per trip, the newspaper reported.

    The controls will reportedly allow companies to make payments for imported goods as long as they provide the proper documentation.

    Among other measures, time depo

  • 2013-03-27 11:46

    NEW YORK CITY (MNI) - Boston Federal Reserve Bank President Eric Rosengren said Wednesday that the Fed should continue buying bonds "through this year," although he said the amount may need to be adjusted "up or down" from the current $85 billion per month.

    While the U.S.