1. FED

1) Bernanke Says Fed Seeks to Increase Clarity About Its Goals

Federal Reserve Chairman Ben S. Bernanke said the central bank is likely to rely more on public communications as a policy tool as it seeks to provide clarity about the likely future path of interest rates.

Unable to lower interest rates below zero, the central bank has relied on forward guidance about its intentions and manipulation of the size and composition of its assets to provide stimulus to the economy, Bernanke said.

2) Undermining Bernanke Stirs Republicans Joining Fed Insiders

The U.S. Federal Reserve is under more pressure than at any point in three decades over Chairman Ben S. Bernanke’s efforts to jumpstart the economy, and the criticism threatens to undermine support for the central bank.

Some lawmakers and economists say the U.S. central bank shares the blame because it failed to build a consensus for its unprecedented activism. The Fed’s own internal divisions were underscored by three reserve bank presidents dissenting at each of the last two meetings, the most since 1992.

Analyst Comment: If you think of the Fed’s reputation, that is its key political asset. All of these criticisms leave a mark over time.

3) Fed’s Lockhart Says U.S. Not Facing Circumstances Warranting QE3

Onset of downturn, deflation forces needed before QE3, Fed’s Lockhart tells reporters after speech.

* Says “still open to considering other forms of policy”

* Sees “chance economy will accelerate a little”

* Growth pace may allow “a little patience” for Fed