The Federal Reserve’s balance sheet is poised to exceed $4 trillion, prompting warnings its record easing is inflating asset-price bubbles and drawing renewed lawmaker scrutiny just as Janet Yellen prepares to take charge.
Federal Reserve Bank of Richmond President Jeffrey Lacker said he opposes continuing asset purchases because they aren’t worth the risk, and that markets will remain volatile as policy makers debate how and when to curtail the program.
The Federal Reserve says it will keep buying bonds until the labor market has “improved substantially,” without defining the phrase. Officials may have adopted a threshold nevertheless, say two former Fed economists.
U.S. banks urged the Federal Reserve to take the lead in defending the financial services industry from cyber attacks by working with federal counterterrorism, intelligence and law enforcement agencies, documents show.
Global central banks buying assets and keeping interest rates low to boost growth have had “positive short-term effects for banks” even as risks from the policies are increasing, the International Monetary Fund said.
China’s slowdown last year probably didn’t exceed government reports, researchers at the Federal Reserve Bank of San Francisco said, differing from concerns voiced by some analysts about the accuracy of the official data.