Investors get too comfy over US-euro divergence

November 19, 2015

Twin the prospect of higher U.S. policy rates with the chance of more euro zone easing and the result is eye-catching divergences in currency and interest rate markets. The problem is, such price trends are vulnerable to setbacks even if rate-setters do what’s expected of them.

White House wannabes give Wall Street much to fear

November 11, 2015

The fourth GOP presidential debate unleashed many fanciful notions about the financial crisis and its aftermath. Ben Carson blamed stock buybacks, Jeb Bush botched bank capital and Ted Cruz flubbed monetary policy. It’s modern history whose lessons are too dangerous to repeat.

Fed feeds Goldman conspiracy-theory machine

November 10, 2015

Hiring former dealmaker Neel Kashkari to run Minneapolis means the investment bank’s alumni are in charge of three of the central bank’s 12 regional branches. It’s great fodder for those seeking evidence of a system in thrall to Wall Street and Goldman. The reality is less juicy.

Review: Fed founders wouldn’t recognize their baby

By Edward Chancellor
October 30, 2015

In “America’s Bank,” Roger Lowenstein shows how the Federal Reserve was created to act as lender of last resort and little more. Since then, there’s been mission creep with many ill consequences. A century after its foundation, the central bank needs to address its failings.

Chancellor: Bernanke’s courage hides bigger error

By Edward Chancellor
October 15, 2015

The Fed chairman did what was necessary to hold the financial system together after the 2008 Lehman bust. Yet his memoirs reveal that he still doesn’t understand the dangers posed by low interest rates, or the difficulties of escaping from his extraordinary monetary remedies.

Record-slow U.S. bank deal offers cautionary tale

October 1, 2015

The Fed took three years to OK the $16 bln M&T’s takeover of smaller Hudson City, having demanded fixes to the buyer’s back office. CEO Bob Wilmers now looks like he’s paying over the odds for a struggling rival. Others in the industry with problems won’t find M&A a quick fix.

Review: Ben Bernanke and a global monetary plague

By Edward Chancellor
August 28, 2015

Ever since the collapse of Lehman Brothers, the Federal Reserve has engaged in financial experimentation that has delivered the weakest rebound on record while spreading deleterious effects around the globe that author Brendan Brown, in a forthcoming book, likens to a plague.

Oil price slide complicates life for central banks

August 4, 2015

Brent is back down at $50 a barrel. Bond prices show this is eroding investor confidence that inflation will pick up. Central banks usually ignore the temporary impact of commodity price swings, but can’t afford to be complacent with inflation and policy rates already so low.

Edward Hadas: Stop knocking the euro

By Edward Hadas
July 22, 2015

Ben Bernanke thinks the single currency is failing. He is not alone. But the former Fed boss is too short term and too financial. The euro zone has tough structural economic problems. The currency is different. Its future is political, and bright.

Fed might fret about emerging market “spillback”

June 16, 2015

Weak investment and import demand in developing nations is threatening to drag down U.S. growth just as the Federal Reserve mulls raising interest rates. The central bank was able ignore the effects of its bond-buying on others. But a spillback could choke the American recovery.