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A labour model for inflation dynamics

A model with sticky nominal wages and right-to-manage bargaining best captures the response of inflation to nominal labour shocks, a new paper from the Philadelphia Federal Reserve posits.

Fed to buy Treasuries

The Federal Open Market Committee said on Thursday that it will buy up to $300 billion in Treasuries and an additional $750 billion of agency mortgage-backed securities. It will also invest an additional $100 billion in agency debt.

A new monetary policy for the Fed

Jane D'Arista, an economist, has proposed a new countercyclical method of monetary control to enhance the Federal Reserve's ability to respond to credit contractions and expansions, in a new paper published by the University of Massachusetts Amherst.

AIG cutting costs, Bernanke assures senator

Ben Bernanke, the chairman of the Federal Reserve, has moved to soothe Congressional anger over the bailout of American International Group (AIG), saying that the beleaguered insurer had been forced to adhere to strict cost-cutting measures, according to…

Bernanke moots Fed for systemic-risk role

Ben Bernanke, the chairman of the Federal Reserve, on Tuesday called for the Fed to be involved in "some capacity" in monitoring system-wide threats to financial markets. His comments came as part of a raft of proposals to overhaul regulation in America…

Fed's Hoenig criticises Tarp

Thomas Hoenig, the president of the Kansas City Federal Reserve, has criticised the Troubled Assets Relief Programme (Tarp) for its lack of a clear set of principles and said that its implementation appears ad hoc and opaque in dealing with banks judged…

Fed's Beige Book: economy deteriorating

The latest edition of the Federal Reserve's Beige Book, a guide to business conditions in the 12 districts overseen by the regional Feds, indicates that economic activity deteriorated further in January and February.

ICE's CDS clearing plan gets Fed's approval

The Fed has accepted a bid by ICE Trust - an amalgam of an exchange operator, a provider of clearing services and eight banks - to run a central counterparty and clearing house for the global credit-default-swap (CDS) market.

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