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You can find the current article at its original source at https://www.theguardian.com/business/live/2016/sep/21/bank-of-japan-stimulus-programme-federal-reserve-business-live
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| Fed chair Yellen rejects Trump criticism after leaving US interest rates on hold – live updates | Fed chair Yellen rejects Trump criticism after leaving US interest rates on hold – live updates |
| (35 minutes later) | |
| 9.05pm BST | |
| 21:05 | |
| Wall Street closes higher | |
| Ding Ding! The closing bell is being rung at the New York stock exchange. | |
| And shares have rallied pretty strongly, after the Fed left interest rates on hold and gave a fairly upbeat view of the US economy. | |
| The Dow Jones and the S&P 500 have both gained almost 1%, as traders welcome the decision not to hike borrowing costs today. | |
| 8.51pm BST | |
| 20:51 | |
| Close Brothers: Economic data didn't justify a hike | |
| Nancy Curtin, Chief Investment Officer at Close Brothers Asset Management, also predicts a rate rise before Christmas. | |
| But today, though, the economic picture simply wasn’t good enough. | |
| “Any expectation of a Fed rate rise in September unwound following weak economic performance in the third quarter. Stumbling growth in the economy, particularly in industrial production, was a significant counterbalance to the more hawkish sentiment displayed by certain members of the Fed earlier in the month. | |
| “The Fed is highly pragmatic though, and if wider data, including inflation, begins to mirror the strength of the labour market then they may be able to raise interest rates again before the year is up. In the meantime, as in the UK, investors continue to keep their eye on fiscal policy and carefully watch how this will develop as the cornerstone to long-term economic recovery.” | |
| 8.49pm BST | |
| 20:49 | |
| ETX Capital: It's a Hawkish Hold from the Fed | |
| Reaction to the Federal Reserve meeting is coming in now... | |
| Neil Wilson, markets analyst at ETX Capital, says the US central bank has pulled off a “Hawkish hold” today. | |
| With three policymakers voting to hike, as December rise looks likely. | |
| “That was about as hawkish a hold as you’re ever likely to get from the Fed. Three dissenting voices is highly unusual for the US central bank policy team, and indicates just how close the FOMC is to raising rates. The fact that Mester, George and Rosengren all want to raise rates also points to some division and potentially a question mark over the authority of Janet Yellen. | |
| Interestingly she said the decision not to hike this month does not reflect a lack of faith in the US economy. Instead it looks like the Fed is simply being very cautious as it has a bit of slack in the labour market and inflation is not yet at target. | |
| 8.33pm BST | 8.33pm BST |
| 20:33 | 20:33 |
| Yellen: Hope to see wages rising | Yellen: Hope to see wages rising |
| Q: And finally.... when is America actually going to see some meaningful wage growth? | Q: And finally.... when is America actually going to see some meaningful wage growth? |
| Yellen offers some hope to hard-pressed workers. | Yellen offers some hope to hard-pressed workers. |
| The Fed does expect the unemployment rate to decline, she says, and the labour market to improve. | The Fed does expect the unemployment rate to decline, she says, and the labour market to improve. |
| So: | So: |
| My hope and expectation is that we will see a pick-up in wage growth, that is broadly beneficial to US household. | My hope and expectation is that we will see a pick-up in wage growth, that is broadly beneficial to US household. |
| And that’s the end of the press conference. I’ll pull a short summary together shortly. | And that’s the end of the press conference. I’ll pull a short summary together shortly. |
| 8.29pm BST | 8.29pm BST |
| 20:29 | 20:29 |
| Some reaction to that last question: | Some reaction to that last question: |
| "I’m not in favor of a 'whites of their eyes' kind of approach" to staving off inflation with rate hikes, Yellen says | "I’m not in favor of a 'whites of their eyes' kind of approach" to staving off inflation with rate hikes, Yellen says |
| Nudge against Summers: Yellen says she's "not in favor" of whites-of-eyes approach on inflation. | Nudge against Summers: Yellen says she's "not in favor" of whites-of-eyes approach on inflation. |
| 8.28pm BST | 8.28pm BST |
| 20:28 | 20:28 |
| Asked about inflation expectations, Yellen says the Fed must be “forward looking”. No-one at the FOMC wants to allow inflation to overshoot badly. | Asked about inflation expectations, Yellen says the Fed must be “forward looking”. No-one at the FOMC wants to allow inflation to overshoot badly. |
| But we must also look at Japan as a reminder that inflation expectations can become un-anchored. | But we must also look at Japan as a reminder that inflation expectations can become un-anchored. |
| 8.23pm BST | 8.23pm BST |
| 20:23 | 20:23 |
| Another question about Wells Fargo - what is the Fed going do to clean it up? | Another question about Wells Fargo - what is the Fed going do to clean it up? |
| Yellen says the Fed wants all banks, not just Wells, to have robust risk management systems to protect customers. | Yellen says the Fed wants all banks, not just Wells, to have robust risk management systems to protect customers. |
| This is a better way to ask the Wells question: connect it to systemic level, soundness. However, it still won't get a meaningful answer, . | This is a better way to ask the Wells question: connect it to systemic level, soundness. However, it still won't get a meaningful answer, . |
| Updated | Updated |
| at 8.25pm BST | at 8.25pm BST |
| 8.20pm BST | 8.20pm BST |
| 20:20 | 20:20 |
| Asked about leverage risks, Yellen says she’s “worried” that bubbles could form in the US economy. | Asked about leverage risks, Yellen says she’s “worried” that bubbles could form in the US economy. |
| But no-one knows for sure when a valuation turns into a bubble, she argues. | But no-one knows for sure when a valuation turns into a bubble, she argues. |
| #Fed's Yellen: "We are worried that bubbles could form in the economy." pic.twitter.com/fsXcLsxSYV | #Fed's Yellen: "We are worried that bubbles could form in the economy." pic.twitter.com/fsXcLsxSYV |
| 8.17pm BST | 8.17pm BST |
| 20:17 | 20:17 |
| Q: Does the Wells Fargo scandal imply that some banks are simply too big to manage and should be broken up? | Q: Does the Wells Fargo scandal imply that some banks are simply too big to manage and should be broken up? |
| Janet Yellen says no - the key is that banks need to be run properly. | Janet Yellen says no - the key is that banks need to be run properly. |
| Updated | Updated |
| at 8.17pm BST | at 8.17pm BST |
| 8.15pm BST | 8.15pm BST |
| 20:15 | 20:15 |
| Q: Has the Fed launched an investigation into the scandal at Wells Fargo? | Q: Has the Fed launched an investigation into the scandal at Wells Fargo? |
| Yellen says this is a matter for other regulators (as it affected consumers, who were wrongly given phoney bank accounts and credit cards). | Yellen says this is a matter for other regulators (as it affected consumers, who were wrongly given phoney bank accounts and credit cards). |
| But the Fed will be watching Wells Fargo closely, to ensure its top managers are obeying compliance rules. | But the Fed will be watching Wells Fargo closely, to ensure its top managers are obeying compliance rules. |
| We have been “distressed” to see these kinds of problems, she adds; banks need to ensure that their staff are acting ethically and protecting customers. | We have been “distressed” to see these kinds of problems, she adds; banks need to ensure that their staff are acting ethically and protecting customers. |
| 8.10pm BST | 8.10pm BST |
| 20:10 | 20:10 |
| Donald Trump is looming over today’s press conference... | Donald Trump is looming over today’s press conference... |
| Q: Are you worried that Trump could go back through the meetings of Fed meeting for signs that politics has influenced your decisions? | Q: Are you worried that Trump could go back through the meetings of Fed meeting for signs that politics has influenced your decisions? |
| No, Yellen replies, insisting again that politics does not play a role. | No, Yellen replies, insisting again that politics does not play a role. |
| "The Federal Reserve is not politically compromised. We do not discuss politics at our meetings," Yellen says in answer to @RebeccaJarvis | "The Federal Reserve is not politically compromised. We do not discuss politics at our meetings," Yellen says in answer to @RebeccaJarvis |
| 8.08pm BST | 8.08pm BST |
| 20:08 | 20:08 |
| Q: Is there a risk in leaving interest rates too low for too long? | Q: Is there a risk in leaving interest rates too low for too long? |
| Yes, Yellen replies. But the bigger risk is to raise rates too soon. | Yes, Yellen replies. But the bigger risk is to raise rates too soon. |
| We could cause a recession in the process - that isn’t something that I and my colleagues want to be responsible for. | We could cause a recession in the process - that isn’t something that I and my colleagues want to be responsible for. |
| * FED's Yellen says there are risks in waiting too long to raise rates - RTRS | * FED's Yellen says there are risks in waiting too long to raise rates - RTRS |
| * FED's Yellen says risk that FED would need to tighten policy too quickly if wait to long to raise rates again - RTRS | * FED's Yellen says risk that FED would need to tighten policy too quickly if wait to long to raise rates again - RTRS |
| 8.05pm BST | 8.05pm BST |
| 20:05 | 20:05 |
| Q: Why did the Fed cite the Brexit vote as a key risk back in June, but hasn’t cited the November elections as a risk today? | Q: Why did the Fed cite the Brexit vote as a key risk back in June, but hasn’t cited the November elections as a risk today? |
| Yellen won’t be tempted with this curveball, saying simply that she won’t comment on the US election. | Yellen won’t be tempted with this curveball, saying simply that she won’t comment on the US election. |
| 8.03pm BST | 8.03pm BST |
| 20:03 | 20:03 |
| Two political questions... | Two political questions... |
| Q: Is political uncertainty weighing on US growth, in the run-up to November’s election? | Q: Is political uncertainty weighing on US growth, in the run-up to November’s election? |
| Yellen says that investment spending has been weak recently, but she isn’t exactly sure why. | Yellen says that investment spending has been weak recently, but she isn’t exactly sure why. |
| Consumer sentiment is “perfectly solid”, though. | Consumer sentiment is “perfectly solid”, though. |
| Q: Does the Fed want government spending to take more of the strain? | Q: Does the Fed want government spending to take more of the strain? |
| There are ways that fiscal policy could help, Yellen replies, especially though ‘automatic stabilisers’ which would kick in during a slowdown. | There are ways that fiscal policy could help, Yellen replies, especially though ‘automatic stabilisers’ which would kick in during a slowdown. |
| 7.55pm BST | 7.55pm BST |
| 19:55 | 19:55 |
| Q: Could interest rates rise at the next meeting, in November? | Q: Could interest rates rise at the next meeting, in November? |
| Yellen confirms that the November meeting is ‘live’. | Yellen confirms that the November meeting is ‘live’. |
| 7.55pm BST | 7.55pm BST |
| 19:55 | 19:55 |
| Yellen rejects Trump's criticism over rate policy | Yellen rejects Trump's criticism over rate policy |
| A zinger of a question: | A zinger of a question: |
| Q: Donald Trump claims that the Federal Reserve has kept interest rates artifially low for political reasons. What’s your response? | Q: Donald Trump claims that the Federal Reserve has kept interest rates artifially low for political reasons. What’s your response? |
| Yellen tries to sweeps the Republican presidential nominee’s criticism aside. | Yellen tries to sweeps the Republican presidential nominee’s criticism aside. |
| I can say emphatically that political issues play no part in the path of monetary policy, she insists. | I can say emphatically that political issues play no part in the path of monetary policy, she insists. |
| We do not discuss politics at our meetings, and we do not take politics into account in our decisions. | We do not discuss politics at our meetings, and we do not take politics into account in our decisions. |
| 7.52pm BST | 7.52pm BST |
| 19:52 | 19:52 |
| Q: Is the Fed’s credibility being hurt by the different briefings we’ve heard from policymakers, with some hinting at rate hikes and others much more dovish? | Q: Is the Fed’s credibility being hurt by the different briefings we’ve heard from policymakers, with some hinting at rate hikes and others much more dovish? |
| Yellen says there is less disagreement within the FOMC than you might think from recent speeches and comments. | Yellen says there is less disagreement within the FOMC than you might think from recent speeches and comments. |
| We do not suffer from “group think”, she adds; we are debating the issues around when to raise interest rates. | We do not suffer from “group think”, she adds; we are debating the issues around when to raise interest rates. |
| #FED YELLEN: MOST COLLEAGUES AGREE CASE FOR HIKE HAS STRENGTHENED - MNI | #FED YELLEN: MOST COLLEAGUES AGREE CASE FOR HIKE HAS STRENGTHENED - MNI |