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Central Banking

Wolfowitz's moves rankle World Bank staff

According to this recent article, Paul Wolfowitz is sending shock waves through the World Bank as he begins exerting his influence. Critics say Wolfowitz has centralized his authority through an inner circle of advisors mostly from the Pentagon and White…

Greenspan goes out with final jab at inflation

The Federal Reserve's decision to increase interest rates again left open the possibility of another increase next month in a smooth handoff of the Fed policy baton from Greenspan to Ben Bernanke, this article published on Wednesday 1 February says.

Canada's Jenkins on global economic trends

In the speech 'Global economic trends: Implications for Canada' given on 1 February Paul Jenkins of the Bank of Canada said the Bank of Canada sees room for "some modest further increase" in interest rates as the economy runs at its production capacity,…

Report says Germany may create gold sale fund

Germany may create a special fund for the proceeds of Bundesbank gold sales in a move which could help ease central bank opposition to the sale of part of its huge reserves, according to a draft law quoted by Reuters on Thursday 2 February.

Draghi flies a different course

Italy has all it needs to resolve its own problems and can look towards a bright future, Bank of Italy Governor Mario Draghi said on Thursday 2 February. Draghi also emphasised he would take a different approach to that of former governor Antonio Fazio.

BoE legal eagle set to retire

According to the Guardian's City diary, Malcolm Glover would have retired from the Bank of England at the end of 2004 had it not been for the litigation brought by the BCCI liquidators.

Comment: Trichet's new strategy

Jean-Claude Trichet, president of the European Central Bank (ECB), on Thursday 2 February cemented expectations of a 25 basis point rate hike next month. The manner in which he has gone about flagging the move underlines the central bank's new…

IMF's Krueger on the pursuit of stability & growth

In the speech 'A "continuous adventure": The pursuit of stability and growth in modern economies' given on 30 January Anne Krueger of the IMF said low inflation is a vital element in any macroeconomic framework, and much progress has been made.

Bernanke inherits an experienced Fed staff

Alan Greenspan's legacy includes a Fed full of battle-tested veterans who helped him calm the markets and steer the U.S. economy through September 11, the 1987 stock market crash, the international currency crises of the 1990s and two recessions,…

Bond market bubble?

It is time to push beyond the "global savings glut" argument and the closely related "excess global liquidity" argument to explain the extraordinarily low level of both real and nominal long-term interest rates, according to this article published on…

Survey of foreign exchange settlement risk

The Committee on Payment and Settlement Systems said Wednesday it will carry out a survey of how banks and other selected institutions manage the risks they can incur when settling foreign exchange transactions.

Ben Bernanke sworn in as Fed chairman

Ben Bernanke on Wednesday 1 February became the fourteenth Chairman of the Board of Governors of the Federal Reserve System and the Chairman of the Federal Open Market Committee, succeeding Alan Greenspan.

Fed raises rates, drops 'measured' stance

The Federal Open Market Committee decided on Tuesday to raise its target for the federal funds rate by 25 basis points to 4-1/2 percent. In its statement the FOMC dropped "is likely" and replaced it with "may," regarding further policy firming.

Comment: Bernanke's options kept open

Subtle changes in the wording of the Fed's latest monetary policy statement leaves new chairman, Ben Bernanke, with more wiggle-room than may have been expected. Markets will become very sensitive to incoming data and will look to Bernanke's Capitol Hill…

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