The Federal Reserve’s bond purchases and guidance on future policy are “weak instruments” the central bank resorted to after pushing down the benchmark interest rate to zero, according to a paper presented at a Fed conference in Jackson Hole, Wyoming.
The U.S. labor market’s “weak and faltering” recovery doesn’t imply the economy is sliding back into a recession and may instead reflect productivity gains, said Stanford University economist Robert Hall , who heads the National Bureau of Economic Research’s business-cycle dating committee.
Stanley Fischer, said to be the leading candidate for the No. 2 job at the Federal Reserve, offers crisis-fighting experience and a dose of skepticism about efforts to shape expectations on the outlook for interest rates.
Vicki Cook, 52, landed a job two weeks ago at a trucking company after applying for 50 positions in almost four months. “It was a blessing,” said the Okarche, Oklahoma, woman, whose previous job had been eliminated.
As financial turmoil in Europe threatened to overwhelm the region’s banks last November, Bank of England Governor Mervyn King arranged conference calls with the world’s top central bankers to decide what steps to take.