By Yali N’Diaye
BALTIMORE (MNI) – From now on, the Federal Open Market Committee
will incorporate funds rate forecasts in its Summary of Economic
Projections, with the notion the document will “become more meaningful,”
Fed Governor Sarah Bloom Raskin said Friday.
Answering questions following a luncheon speech to the Maryland
Bankers Association First Friday Economic Outlook Forum, Raskin said,
“The notion here is that the statement of economic projections is going
to become a more meaningful document” since individual FFR projections
will now be available. The addition of federal funds rate projections to
the quarterly FOMC forecasts was disclosed in this week’s minutes of the
latest FOMC meeting.
Analytically, she continued, “this is an important piece of work,”
as analysts will be able to see how people preparing the projections tie
together the outlook for the economy and when monetary contraction
should begin.
In other comments during the short question and answer session,
Raskin reiterated that regulators, through their bank examinations,
notably of troubled debt restructuring, should not unnecessarily hinder
lending to creditworthy borrowers.
Pointing out that the accounting and regulatory treatments of
troubled debt is different, she stressed the need to ensure consistency
between the two.
** Market News International **
[TOPICS: M$U$$$,MMUFE$,MGU$$$,MFU$$$]
