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Central Banks

US output gap may be smaller than thought

That core inflation has fallen relatively little indicates that there is less slack in the American economy, and thus a smaller output gap, than standard estimates predict, research published by the San Francisco Federal Reserve posits.

Inflation outlook leaves scope for RBA cuts

Members of the Reserve Bank of Australia's rate-setting board saw no pressing case for further monetary stimulus but concurred that the inflation outlook left scope for cuts if required, the minutes of this month's policy meeting show

Ex-Fed's Volcker backs global currency

Paul Volcker, a former Federal Reserve chairman, on Thursday argued that the "ultimate logic" of an international financial system was a world currency, but acknowledged that there were no credible alternatives to the dollar for "many tomorrows".

Fed emails point to BoA pressure on Merrill deal

Emails sent by Federal Reserve officials and subpoenaed by government investigators appear to back claims that Ben Bernanke pressurised Bank of America to go ahead with its takeover of investment bank Merrill Lynch after the bank attempted to back out of…

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