FederalReserve posts
FeedPosted Dec 17th 2009 3:20PM by Connie Madon (RSS feed)

Yesterday's Federal Reserve can be viewed in two parts.
First we have the restatement of the Fed's low interest rates, by keeping the Fed Funds rate at 0 -- 25% for an "extended period."
It repeated that economic activity was improving. Specifically, housing and consumer spending were up a bit. The unemployment picture, while still weak, is showing signs of bottoming.
But this is not the real news. In a detailed statement the Fed explained how it would exit its emergency programs. It said that it would still buy $1.25 trillion dollars of agency mortgaged backed securities and $175 billion of agency debt. What is significant is that it will terminate these programs during the first quarter of 2010. This is the first piece of hard news from the Fed since these programs began.
Continue reading Fed Hints at an Exit Plan for Its Emergency Support Measures
Posted Dec 16th 2009 5:00PM by Douglas S. Roberts (RSS feed)
Filed under: Forecasts, Other Issues, Good news, Money and Finance Today, Economic Data, Headline News, Federal Reserve, Recession, Financial Crisis
The Federal Reserve Open Market Committee (FOMC) issued its statement indicating again that interest rates will remain low for an extended period of time. The decision was unanimous.
The Fed continues to avoid any potential language which could disrupt the financial markets. Chairman Bernanke, a student of the Great Depression, does not want to do anything to damage the current stabilization in the economy.
Continue reading The Fed decision: Ending extraordinary measures but no monetary tightening
Posted Dec 15th 2009 10:00AM by Connie Madon (RSS feed)
Filed under: Bad News, Economic Data, Federal Reserve
All is not well in paradise. Producer prices rose 2.4% in November. While this the first gain this year, the size of the jump was much more than expected and the highest since October 2008. At than time we were coming off record oil prices. Analysts had expected a meager 1.6% rise, a surge in energy prices in the past month contributed to a much higher rise.
The Federal Reserve is meeting today and tomorrow. The Fed will then issue its policy statement on interest rates. It is expected that interest rates will remain low. All eyeballs are on whether the Fed will still include the words: "Extended period."
Continue reading Producer prices rise a hefty 2.4% in November
Posted Dec 1st 2009 9:40AM by Connie Madon (RSS feed)
Filed under: Politics, Federal Reserve, Financial Crisis
On Thursday, Federal Reserve Chairman Ben Bernanke will appear before the Senate Banking Committee. The purpose of the meeting is to decide whether he will be reappointed for a second term as Fed chairman.
He must be a bit nervous. He has taken to the stump, touting his accomplishments and desires for fiscal reform. He is being charged by some members of Congress for not being vigilant enough during the financial meltdown. Representative Ron Paul (R., Texas) already sponsored a provision in a committee that would audit the Federal Reserve more than it already is. Both the House and Senate are looking at ways to strip Bernanke of some of his powers. They would relegate him to managing interest rates.
Continue reading Worried about his job, Bernanke now presses for financial reforms
Next Page >