Federal Reserve officials last month discussed a range of tools they could use to control short-term interest rates once they decide on the first increase in borrowing costs since 2006. Missing from the list: asset sales.
The cost of living rose in April and fewer Americans filed claims for jobless benefits last week, showing the world’s largest economy is making progress toward the Federal Reserve’s unemployment and inflation goals.
The U.S. Commodity Futures Trading Commission moved to require more swaps starting this month to be bought and sold on new trading platforms designed to boost price competition between banks and other financial firms.
Federal Reserve officials were told in December 2008 that they would have to buy “very large” quantities of U.S. Treasury and housing-agency debt to have an impact on the economy as they considered alternatives to cutting interest rates that were heading toward zero.