Amid the political and social uprisings in the Middle East, and union protests in the U.S., a recent speech by a pivotal U.S. policy maker received little attention, but it's one that investors should review.

In a speech before the recent G-20 meeting, U.S. Federal Reserve Chairman Ben Bernanke urged emerging market nations to address the flood of money streaming into their markets.

Continue reading Bernanke: Emerging Markets Need to Address Capital Flows

Bernanke: Emerging Markets Need to Address Capital Flows originally appeared on BloggingStocks on Tue, 22 Feb 2011 18:00:00 EST. Please see our terms for use of feeds.

The past week's data-point-of-consequence for investors was delivered by none other than the head of the world's most powerful central bank. U.S. Federal Reserve Chairman Ben Bernanke underscored the nation's need to raise the debt ceiling.

Speaking at a National Press Club luncheon in Washington Thursday, Bernanke said delays in raising the debt ceiling limit, currently $14.3 trillion, could have "catastrophic" consequences, Reuters reported.

Continue reading Bernanke: Failure to Raise Debt Ceiling Could Be 'Catastrophic'

Bernanke: Failure to Raise Debt Ceiling Could Be 'Catastrophic' originally appeared on BloggingStocks on Sun, 06 Feb 2011 10:40:00 EST. Please see our terms for use of feeds.

One economic data point that sort of slipped under the radar recently concerned the U.S. Federal Reserve's $78.4 billion payment to the U.S. Treasury in 2010, up about 65% from $47.4 billion in 2009.

And the reason for the revenue surge? Experienced investors or others who have reviewed the Fed's report will realize that much of it stems from income from the Fed's purchase of mortgage securities and Treasury securities in connection with the quantitative easing, part 2 program, or QE2.

Under QE2, the Fed will purchase up to $600 billion in assets from November 2010 to June 2011 -- this coming after the Fed purchased $1.7 trillion in assets through March 2010.

Continue reading Tell-Tale Stat: Fed Paid $78.4 Billion to U.S. Treasury in 2010

Tell-Tale Stat: Fed Paid $78.4 Billion to U.S. Treasury in 2010 originally appeared on BloggingStocks on Fri, 21 Jan 2011 15:00:00 EST. Please see our terms for use of feeds.

The Federal Reserve has embarked on a controversial new program of buying $600 billion of U.S. Treasuries to keep interest rates low and spur the economy.

There is some disagreement among some members of the Fed concerning the risks of this new program. Some fear that the economy is growing too rapidly, fueling unwanted levels of inflation, as reported by CNNMoney.

Continue reading Fed Members Differ on Economic Outlook

Fed Members Differ on Economic Outlook originally appeared on BloggingStocks on Wed, 05 Jan 2011 12:00:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: Mixed Second Day of 2011 (ATHR, QCOM, GM, GLD, WFMI, XOMA)

Closing Bell: Mixed Second Day of 2011 (ATHR, QCOM, GM, GLD, WFMI, XOMA) originally appeared on BloggingStocks on Tue, 04 Jan 2011 16:20:00 EST. Please see our terms for use of feeds.

The verdict on the U.S. Federal Reserve's quantitative easing program, including part 2, or QE2, will not be rendered for years. It may be longer, given the many areas of financial and economic policy the program has touched.

Anyone who says they definitively and incontrovertibly know QE2's long-term impact is not being genuine: many more data points have to occur to judge, for example, how QE2 affected banker lending psychology, let alone its impact on the U.S. economy.

That said, we can glean clues and insights by looking at current conditions, and one short-term data point reveals that since Fed Chairman Ben Bernanke disclosed the implementation of QE2 on August 27, the S&P 500 is up 17%, Bloomberg News reported Friday.

Continue reading A Bernanke Rally? S&P 500 Up 17% Since QE2 Announced

A Bernanke Rally? S&P 500 Up 17% Since QE2 Announced originally appeared on BloggingStocks on Fri, 17 Dec 2010 16:40:00 EST. Please see our terms for use of feeds.

The Federal Reserve Open Market Committee stated, again, that interest rates will remain low for an extended period of time and that quantitative easing will continue with the "purchase $600 billion of longer-term Treasury securities by the end of the second quarter of 2011, a pace of about $75 billion per month." Thomas Hoenig again voted against the FOMC policy.

The FOMC left its options open for the future and gave no specific guidance as to what actions it will take when QE2 ends next year.

Continue reading The Fed Statement: No News, Just Confirmation of Policy

The Fed Statement: No News, Just Confirmation of Policy originally appeared on BloggingStocks on Wed, 15 Dec 2010 09:50:00 EST. Please see our terms for use of feeds.

Continue reading Fed's QE2 is a Bridge to Normal Credit Markets

Fed's QE2 is a Bridge to Normal Credit Markets originally appeared on BloggingStocks on Tue, 07 Dec 2010 16:00:00 EST. Please see our terms for use of feeds.

Federal Reserve Chairman Ben Bernanke will appear on 60 Minutes this Sunday to defend his controversial stimulus package, dubbed QE2, of buying $600 billion of Treasury securities.

In the CBS interview, Bernanke explains his intentions with QE2 and defends the notion that this stimulus will not lead to inflation. He also told CBS that he is not ruling out the purchase of more securities.

Continue reading Bernanke on 60 Minutes: We Could Have QE3

Bernanke on 60 Minutes: We Could Have QE3 originally appeared on BloggingStocks on Sat, 04 Dec 2010 12:40:00 EST. Please see our terms for use of feeds.

Former U.S. Federal Reserve Chairman Alan Greenspan has a message for investors: intentional weakening of currencies -- direct and indirect -- has limits.

"The suppression of the reminbi [China's yuan currency ] and the recent weakening of the dollar are, of necessity, producing firming exchange rates in the rest of the world," Greenspan wrote in an op-ed column in The Financial Times.

Continue reading Greenspan: Intentional Weakening of Currencies Is Bad for Trade, Investors

Greenspan: Intentional Weakening of Currencies Is Bad for Trade, Investors originally appeared on BloggingStocks on Thu, 11 Nov 2010 16:40:00 EST. Please see our terms for use of feeds.

Reuters quoted Federal Reserve Chairman Ben Bernanke as saying: "We're not in the business of trying to create inflation. Our purpose is to provide additional stimulus to help the economy recover and to avoid potentially additional disinflation, which I think we'll all agree could also be worrisome."

Bernanke claims that inflation is below the Fed's 2% target. That's hogwash! Sure if you use the "core" CPI, which leaves out food and energy, that may be the case. Not to worry.

Continue reading Bernanke Says He Does Not Want to Create Inflation

Bernanke Says He Does Not Want to Create Inflation originally appeared on BloggingStocks on Sun, 07 Nov 2010 11:10:00 EST. Please see our terms for use of feeds.

The Federal Reserve Open Market Committee (FOMC) issued its statement indicating again that interest rates will remain low for an extended period of time and that proceeds of Treasury securities will continue to be re-invested into additional Treasury securities.

There will also be additional quantitative easing. This will take the form of the purchase of an additional "$600 billion of longer-term Treasury securities by the end of the second quarter of 2011, a pace of about $75 billion per month," according to the Fed's statement. This was well within the $500 billion to $1 trillion range expected by many economists and strategists. Thus, the current program appears to be largely discounted by the market.

Continue reading The Fed Decision: This is Not the End of Quantitative Easing!

The Fed Decision: This is Not the End of Quantitative Easing! originally appeared on BloggingStocks on Thu, 04 Nov 2010 09:30:00 EST. Please see our terms for use of feeds.

With only a few days left before the Federal Reserve meeting on November 2-3, speculation is rampant concerning whether the Fed will ease, and if so how much.

Here are a few scenarios, as reported in Reuters:

• The general consensus is that the Fed will do some kind of quantitative easing, dubbed QE2.
• Some think it will be $500 billion for five months with more if needed.
• Others think it could be $750 to $1 trillion.
• Will it be open ended with $100 billion per month?
• Perhaps it will be $500 to $750 billion with more if needed.

Continue reading Will the Fed Ease? If So, How Much?

Will the Fed Ease? If So, How Much? originally appeared on BloggingStocks on Wed, 27 Oct 2010 10:30:00 EST. Please see our terms for use of feeds.

The U.S. Federal Reserve is in a quandary about how to explain its anticipated quantitative easing stimulus, dubbed QE2. Officials worry that an added stimulus will create unwanted inflation.

Fed officials Charles Evans and William Dudley have spoken in favor of the new stimulus. Dudley told the Financial Times that asset purchases and communication are "two potentially complimentary avenues."

Continue reading Fed in a Quandary About How to Explain QE2

Fed in a Quandary About How to Explain QE2 originally appeared on BloggingStocks on Fri, 08 Oct 2010 13:00:00 EST. Please see our terms for use of feeds.

Continue reading Fed Officials Discuss Whether We Should Have More Inflation

Fed Officials Discuss Whether We Should Have More Inflation originally appeared on BloggingStocks on Thu, 07 Oct 2010 14:10:00 EST. Please see our terms for use of feeds.

Continue reading Is the Fed's 'QE2' About to Leave the Port?

Is the Fed's 'QE2' About to Leave the Port? originally appeared on BloggingStocks on Wed, 22 Sep 2010 16:00:00 EST. Please see our terms for use of feeds.

While the market deals with the recent news that August housing starts hit a four-month high, most investors and analysts will remain focused on this afternoon's announcement from the Federal Reserve Bank.

The central bank will announce at 2:15 PM if it has decided to take any steps toward kick-starting economic growth. The main vehicle for such a kick in the market's pants is quantitative easing, which is purchasing government bonds in order to add more money to the system.

Continue reading Investors Remain Focused on Fed Announcement

Investors Remain Focused on Fed Announcement originally appeared on BloggingStocks on Tue, 21 Sep 2010 10:40:00 EST. Please see our terms for use of feeds.

What is happening in the cattle market is directly affecting food prices at your local supermarket. Here are some upsetting numbers.

• Global meat prices have hit a 20-year high.
• The UN Food & Agriculture Organization's index was the highest in August since 1990.
• Live cattle futures hit $1 per pound, the highest in 22 months.
• Australian lamb prices have risen above $5.50 a kilo, the highest since 1973-74.
• And this is the big whopper: Pork bellies, which are used for bacon, are at a record $1.50 per pound.
• The higher cost of feed is driving up prices.

Continue reading Higher Meat Prices Are Fueling Food Inflation

Higher Meat Prices Are Fueling Food Inflation originally appeared on BloggingStocks on Thu, 02 Sep 2010 12:00:00 EST. Please see our terms for use of feeds.

The U.S. economic recovery is now proceeding at an anemic pace, a 1.6% GDP growth rate in the second quarter. And to top it off, certain analysts are arguing "the Fed is out of ammunition" and that means a double-dip recession is ahead.

Well, you can consider "betting" against the Fed, and assume even worse economic conditions are ahead, but before you do, contemplate the following:

• The Fed has already signaled that it's not likely to decrease the size of its balance until it sees sustained evidence of substantial GDP growth, and an increase inf capacity utilization. The calculation here is that the Fed is going to increase its balance sheet, including the purchase of long-term U.S. Treasuries, putting even more downward pressure on long-term interest rates.

Continue reading Is the Fed out of Ammunition?

Is the Fed out of Ammunition? originally appeared on BloggingStocks on Fri, 27 Aug 2010 15:00:00 EST. Please see our terms for use of feeds.

Friday morning, Federal Reserve Chairman Ben Bernanke stated that the central bank is ready to take further action if necessary. In prepared remarks, Bernanke told the assembled conference at Jackson, Wy., that the Fed would consider another large-scale purchase of securities should the economy "deteriorate significantly and signs of deflation were to flare."

Bernanke didn't give a specific plan of action, but his intimations suggest we could see another Fed purchase of securities, either government debt or mortgage securities. The Fed would do this to drive down rates on mortgages in hopes of prompting more Americans to spend money.

Continue reading Will The Fed Take Action? Bernanke Says Yes

Will The Fed Take Action? Bernanke Says Yes originally appeared on BloggingStocks on Fri, 27 Aug 2010 11:40:00 EST. Please see our terms for use of feeds.