The longer the Federal Reserve continues its bond-buying stimulus, the higher the odds it will face a year without any money to give the U.S. Treasury after taxpayers received a record $88.4 billion profit in 2012.
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.
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.
Frederic Mishkin, a professor at Columbia University and a former Federal Reserve governor, talks with Bloomberg's Tom Keene about monetary policy and how the Federal Reserve got it right during the financial crisis, preventing a likely depression. They speak on Bloomberg Television's "Surveillance Midday." (Source: Bloomberg)
Ben S. Bernanke argued for 15 years that the Federal Reserve should announce a numerical inflation target. When he finally got his way in January, the victory allowed the central bank to elevate its other mandate: full employment.
The International Swaps & Derivatives Association, a financial industry derivatives group, is being probed as part of a European Union antitrust investigation into how data on credit derivatives is shared.