Economy and Fed Watch

March 9th, 2010

                                                                                                                          Economy

 

 

Yuan Faces Pressure for Appreciation on China's Interest-Rate Gap, Yi Says The yuan is facing increased pressure to appreciate as a widening interest-rate differential spurs inflows of funds through "underground money shops," China’s top currency regulator said.

Job Openings in U.S. Climb for Second Month as Employers Gain Confidence Job openings in the U.S. rose in January to the highest level in almost a year, signaling employers are gaining confidence as the economic recovery takes hold.

ECB's Weber Opposes `Institutionalization' of European Emergency Aid Fund European Central Bank council member Axel Weber indicated he’s opposed to the establishment of a European Monetary Fund if its purpose is to provide emergency financial aid to countries.

U.S. Economy Could Add 300,000 Jobs This Month, First Trust's Wesbury Says The U.S. economy could add 300,000 jobs this month as businesses rebound from blizzards last month that prevented hiring in parts of the country, said Brian Wesbury, chief economist at First Trust Portfolios in Wheaton, Illinois.

Greek Tax Increases to Cut Budget Deficit Could Fall Short, EU Draft Warns Greek tax increases designed to curb the European Union’s biggest budget deficit may fail to generate as much additional revenue as the government in Athens estimates, a draft EU report said.

Fed's Evans Says Low Rates Needed for `Some Time' as Unemployment Lingers Federal Reserve Bank of Chicago President Charles Evans said low interest rates are likely to be needed “for some time” as high unemployment lingers and inflation stays below his goal.

Iceland Political Disunity May Hamper Icesave Talks With U.K., Netherlands Icelandic opposition leaders berated the government for its handling of a U.K. and Dutch depositor bill and demanded early elections, sparking concern political feuding may hamper efforts to resume cross-border talks.

U.K. Housing Gauge Shows Fewer Price Increases Than Forecast in February A U.K. house price gauge showed fewer increases in values last month than economists forecast as more people tried to sell their homes, a sign the property market may be running out of steam.

Weber Says ECB Could Accept Lower-Rated Bonds as Collateral With Premium European Central Bank council member Axel Weber said the bank could accept government bonds with lower credit ratings as collateral against loans if a higher risk premium were applied.

Pound's Slide to Help U.K. Outpace Euro Economies, Goldman's Nielsen Says The pound’s drop last week to a 10- month low may help the U.K. economy grow faster than the region sharing the euro, which is hobbled by budget deficits and aging populations, according to Goldman Sachs Group Inc

Fed Watch
 

Sack Says Fed Selling Assets Would Risk Sudden Increase in Long-Term Rates Brian Sack, the New York Federal Reserve Bank’s markets chief, said shrinking the central bank’s $2.3 trillion balance sheet quickly through sales of assets risks a sudden rise in long-term interest rates.

New Normal Becomes Old Normal With Exports Spurring Growth in New U.S. Mix The “new mix” is out to topple the “new normal” as the paradigm for America’s economic future.

Fed May Lose Supervision of Small State Banks to FDIC, Senator Reed Says The Federal Reserve, which is urging Congress to let it keep its bank supervising role, may lose oversight of smaller state banks to the Federal Deposit Insurance Corp., Democratic Senator Jack Reed said.

 

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