BEIJING (MNI) - The rise of China's consumer price index could exceed 5% next year as inflationary pressure gathers, a situation which could be only worsened if private sector involvement in the economy does not return, a senior government economist warned in comments published Friday.

The comments by Liu Shijin, vice-president of the Development

By Steven K. Beckner

CHATHAM, Mass. (MNI) - Federal Reserve Vice Chairman Donald Kohn said Thursday that prices of mortgage-backed securities are likely to fall when the Fed eventually begins selling MBS from its portfolio.

He gave no indication when that might be.

But Kohn, echoing earlier comments by New York Federal Reserve Bank

By Brai Odion-Esene

WASHINGTON (MNI) - The Special Master for TARP Thursday said the initial compensation packages submitted by the seven firms that received significant government aid had not been in the public interest, which is why he chose to switch the emphasis from cash to long-term stocks.

"This assignment that the law conferred on me was very, very

By Yali N'Diaye

WASHINGTON (MNI) - In an effort to discourage excessive risk taking and ensure banks' safety and soundness, the Federal Reserve Thursday proposed to conduct a review of compensation practices at small banks and at 28 "large, complex banking organizations."

By Steven K. Beckner

CHATHAM, MASS. (MNI) - Eric Rosengren, president of the Federal Reserve Bank of Boston, stressed the importance of financial supervision for monetary policy and, conversely, the importance of monetary policy for financial supervision in a paper presented Thursday at a conference on Cape Cod sponsored by the Boston Fed.

By Steven K. Beckner

CHATHAM, Ma (MNI) - Federal Reserve Vice Chairman Donald Kohn said Thursday that the government policy of considering some financial institutions "too big to fail" is a serious problem in need of solution, but said it did not cause the financial crisis.

BEIJING (MNI) - The Chinese government's quarterly data release underpinned the newfound emphasis on the threat posed by inflation as growth accelerated to its fastest pace since the outbreak of last year's global financial crisis.

The report from the National Bureau of Statistics showed the economy expanding by 8.9% in the third quarter and by 7.7% during the

By Brai Odion-Esene

RICHMOND, Va (MNI) - Richmond Federal Reserve President Jeffrey Lacker Wednesday said the United States needs to wean itself off the need for housing subsidies, and 10 years from now should no longer need Fannie Mae and Freddie Mac or central bank support for the housing market.