Federal Reserve Latest News: Fed Stops Short of the Clarity Global Markets Crave crave

Wochit 1:21 mins

The U.S. central bank's disclosure on June 19 of a rough route map for phasing out its unprecedented program of bond buying by the middle of 2014 drew a fiery reaction from global markets. Clearly startled, Bernanke and his fellow policymakers have been trying ever since to placate the monsters they awakened. That raises the question what they could have done differently to convey their message that a gradual end to asset purchases did not portend a prompt rise in borrowing costs. Daniel Tarullo, a U.S. Federal Reserve official says the agency should consider releasing more information to the public when it takes enforcement actions against big banks for hurting consumers. Tarullo's comments, made at a hearing before the Senate Banking Committee, come in response to criticism over a settlement related to mistakes big banks made while processing foreclosures in the years after the financial crisis. The Federal Reserve bought $13.3 billion of agency mortgage-backed securities from July 4 through July 11, less than the $16.9 billion it purchased the previous week.

View Comments