Boston Fed president thinks it's nearly time to taper the central bank's stimulus

Aug 18, 2021
With employment strong and housing prices high, Eric Rosengren says the Federal Reserve should cut back its bond purchases soon.
Eric Rosengren has been serving as the head of the Federal Reserve Bank of Boston since 2007.
Courtesy of Boston Federal Reserve

Are we entering an era of higher inflation?

Jul 15, 2021
Experts say global forces that helped keep inflation low for decades — like international trade and an expanding workforce — are dissipating.
Global trade and the worldwide labor force have restrained inflation, experts say, but key trends might be reversing.
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To understand the Fed’s bond-buying dilemma, picture a lake

Jul 13, 2021
A Columbia Business School professor explains quantitative easing and the Feds' $120 billion per month bond-buying program with an analogy.
If water on a lake is too low, boats can't go from one side to the other smoothly. "The Fed is basically adding some water in that lake to keep the liquidity — or to keep the water — from completely drying out,” says Yiming Ma of Columbia Business School.
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Banks pump up shareholder payouts as Fed ends pandemic limits

Dividend hikes and stock buybacks are on the way.
Wells Fargo, for instance, is doubling its dividend and plans to buy back $18 billion in stock.
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The Fed walks a tightrope: Stimulate the economy without causing a housing bubble

Jun 28, 2021
The central bank's been keeping interest rates low in part by buying up mortgage-backed securities. That has Fed officials keeping a wary eye on the housing market for signs of overheating.
The Federal Reserve building is seen January 22, 2008 in Washington, DC.
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Consumers aren't worried about spiking prices — yet

Jun 17, 2021
Consumer inflation expectations aren't rising sharply, according to Morning Consult, consistent with the Fed's view that most inflation right now is "transitory."
Prices for all items were up 5% year over year in May, per the latest consumer price index data.
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Fed sees faster time frame for rate hikes as inflation rises

Jun 16, 2021
The central bank raised its inflation forecast to 3.4% by year-end and expects to hike its benchmark interest rate twice by late 2023.
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Why the Fed is taking longer than other central banks to ease COVID relief

Jun 16, 2021
The Fed has a dual mandate to control inflation as well as unemployment, unlike other central banks.
A view of the Federal Reserve building in Washington, D.C.
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Consumer forecasts of inflation could be a self-fulfilling prophecy

Jun 14, 2021
A Federal Reserve survey found consumers are expecting inflation to hit 4% next year.
Consumers told the New York Fed they expect a 4% inflation rate next year. Officials with the central bank will meet this week to consider adjustments to their interest rate policy.
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Mohamed El-Erian on inflation and the recovery

Jun 7, 2021
The renowned investor and policy adviser is skeptical of the Federal Reserve's insistence that the inflation we're seeing is "transitory."
Mohamed El-Erian in 2016. "I'm more and more worried because of what I'm seeing on the ground," says the famed investor, author and policy adviser.
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