FOMC: Dull by design?

August 12, 2009

The FOMC is determined not to make waves, either in the markets or in Congress. Today’s decision looks to be a compromise between these two goals. Lawmakers such as Jim DeMint are yearning for an end to the credit easing policies. But going cold turkey might unsettle the Treasury market. Allowing the program to taper off gently is a good middle ground. With the Fed’s regulatory role hanging in the balance in Congress over the coming months, this is no time to attract adverse attention.

Another wrinkle in the TALF CMBS saga

August 4, 2009

The New Fed has released some modifications on its CMBS TALF program that could be telling as to why one of the CMBS legacy bonds put up as collateral was rejected during the inaugural round.

Bubble, bubble toil and trouble

July 29, 2009

NEW YORK, July 29 (Reuters) – The Federal Reserve seems to be volunteering to be top bubble burster. In a recent speech, Bill Dudley, the president of the Federal Reserve Bank of New York, overturned more than a decade of Fed orthodoxy by claiming it was the central bank’s duty to defuse asset price bombs before they detonate.

Events, dear boy, events

June 25, 2009

Several blogs have pointed to a pair of fascinating timelines on the U.S. financial turmoil and on the international response to the crisis that were produced by the Federal Reserve Bank of New York.