Federal Reserve Chairman Jerome Powell stands ready to pull some of the central bank’s policy levers in between regularly scheduled meetings, if that’s what it takes to keep short-term interest rates under control.
He noted recent downward pressure on rates during the Federal Open Market Committee’s March 16-17 meeting, according to minutes released Wednesday, and said it might be appropriate adjust the interest on excess reserves rate (known as IOER), the amount the Fed pays on its facility for overnight reverse repurchase agreements or both. Action could come at a regular meeting or between them to keep the fed funds rate, the central bank’s main policy benchmark, “well within” 0% to 0.25%, he said.
Federal Reserve head Jerome Powell says vaccination efforts key to global economic recovery
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IMF policy panel endorses $650 billion increase in resources
Martin Crutsinger
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A poster is displayed on the International Monetary Fund building, Monday, April 5, 2021, in Washington. The IMF and the World Bank open their virtual spring meetings. (AP Photo/Andrew Harnik) (Copyright 2021 The Associated Press. All rights reserved)
WASHINGTON – The International Monetary Fund on Thursday authorized a $650 billion expansion of the 190-nation lending institution s resources with the aim of providing more support for vulnerable countries as they battle the coronavirus pandemic.
IMF Managing Director Kristalina Georgieva said the $650 billion increase in reserves is the largest in IMF history. The move will provide badly needed reserves for poor countries struggling with deep recessions caused by the pandemic and the need to obtain and administer millions of doses of vaccines, she said.
Provided by Dow Jones
By Anna Hirtenstein and Julia Carpenter The S&P 500 was poised Thursday to set another record, propelled by a rally in big technology stocks. The broad market index climbed 0.3% after closing at its 18th record this year on Wednesday. The tech-laden Nasdaq Composite rose 0.8%. The Dow Jones Industrial Average added roughly 0.04%. Stocks have started the second quarter on strong footing, with the S&P 500 rising 2.7% this month. The largest tech companies have surged ahead as the bond market calmed, easing concerns about the high valuations of growth stocks. Within the market, the big factor so far this year has been interest rates, said Ed Keon, chief investment officer at QMA. So rates going up was part of the reason why you had this broadening of the market and a bit of a rotation towards value stocks, especially financials and energy. And now rates have eased off their highs, you re seeing those sectors under
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Repo and Treasury bill rates have been flirting with zero – and even trading below sometimes – since the beginning of the year as reserve balances at the central bank swell. Market participants have told the Fed that a rapid expansion in reserves could keep driving money-market rates lower, with the earliest and most pronounced moves in the overnight secured funding markets.
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