David Greenlaw News
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Two Federal Reserve policy makers rejected a warning from economists that potential losses on the Fed’s $3.1 trillion balance sheet may undermine central bank control of monetary policy.
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Federal Reserve Governor Jerome Powell said the central bank could revise its plan to eventually sell the securities acquired during its large-scale asset purchases, both to avoid causing financial instability and taking losses on its sales.
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Four economists, including a former Federal Reserve governor who has co-written research with Chairman Ben S. Bernanke, warned that losses from the central bank’s more than $3 trillion balance sheet could lead to the Fed losing control of monetary policy.
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Federal Reserve Bank of Boston President Eric Rosengren said the Fed’s large-scale asset purchases help the nation’s fiscal outlook, which should be reflected in an analysis of remittances to the U.S. Treasury.
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The “R” word that economists were using after yesterday’s news that U.S. gross domestic product contracted in the fourth quarter was rebound, not recession.
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The economy in the U.S. unexpectedly came to a standstill in the fourth quarter as the biggest plunge in defense spending in 40 years swamped gains for consumers and businesses.
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Job growth will sustain the U.S. economic recovery even as government fiscal stimulus ends, according to David Greenlaw , Morgan Stanley’s chief fixed-income economist in New York.
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Government efforts to smooth U.S. payroll changes from month to month may have masked an even bigger gain in October than the 151,000 reported today, according to Morgan Stanley’s David Greenlaw .
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Claims for jobless benefits, normally one of the most timely and closely watched indicators of the state of the U.S. labor market, are losing their cachet, economists at Morgan Stanley and Citigroup Inc. say.
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The U.S. will avoid plunging off a fiscal cliff in 2013, according to economists surveyed by Bloomberg News, as lawmakers find enough common ground in budget negotiations to avert a recession.
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