WASHINGTON (Reuters) – The Federal Reserve is likely to hold off offering the U.S. economy fresh stimulus at a meeting on Tuesday as it weighs encouraging signs on the recovery against risks coming from Europe.
Central bank officials are expected to continue discussions on how they might sharpen their communications to get more traction out of the monetary easing they have already put in place, but observers rate chances of an announcement as low.
WASHINGTON, Dec 6 (Reuters) – Federal Reserve Chairman Ben Bernanke on Tuesday pushed back against reports that the Fed had lent banks $7.77 trillion or more during the financial crisis, saying they contained “egregious errors and mistakes.”
Bloomberg Markets Magazine last month published an article called “Secret Fed Loans Gave Banks $13 Billion Undisclosed to Congress.” The article was widely referenced by other news organizations, including The New York Times.
WASHINGTON (Reuters) – Federal Reserve Chairman Ben Bernanke on Tuesday pushed back against reports that the Fed had lent banks $7.77 trillion or more during the financial crisis, saying they contained “egregious errors and mistakes.”
Bloomberg Markets Magazine last month published an article called “Secret Fed Loans Gave Banks $13 Billion Undisclosed to Congress.” The article was widely referenced by other news organizations, including the New York Times.
Surging Republican presidential candidate Newt Gingrich told TheStreet in an interview on Tuesday he would commit the Federal Reserve to ensuring that the dollar would not lose value.
I would return having the Fed having an obligation to have hard money, meaning if you save a dollar this year, it should be worth a dollar 20 years from now.
WASHINGTON (Reuters) – Federal Reserve officials are warming to the idea of publishing their assumptions about the path of interest rates, a decision that could help ease financial conditions.
For months the Fed had pledged to keep the overnight federal funds rate near zero for an extended period. It hardened that vow in September, saying it would stay ultra-low through at least the middle of 2013.
WASHINGTON, Nov 28 (Reuters) – U.S. households continued to
slowly pare debt in the third quarter and showed a glimmer of
interest in ramping up spending, a sign the economy is crawling
back toward normalcy after a wrenching downturn.
U.S. consumer debt fell in the July through September
period, led by declines in mortgage balances, the New York
Federal Reserve Bank said on Monday in a quarterly report on
household debt and credit.
The St. Louis Fed had a public forum this week to talk about their research into the ailing U.S. jobs market. Not a feel-good scenario.
The bottom line was something the regional Fed bank’s research director Christopher Waller told Reuters in a recent interview: the last three recessions have brought jobless recoveries and this one is no exception. No one can clearly explain why, except that employers are less likely to hire back workers they’ve fired than in the past, and that with so much of the recent downturn due to the collapse of housing, it’s evident that unemployed construction workers can’t easily find new work in, say, nursing or IT.
Minutes of the Federal Reserve’s November meeting were notable for showing lengthy discussion — about the way the Fed could talk more clearly. The Fed took no action on either monetary policy or its communications strategy.
Call it the Fed’s sour spot. The recovery, while weak, is showing just enough sign of life to make the need for more monetary accommodation questionable. But by the Fed’s own admission, the job market won’t reach full employment until beyond 2014. In those circumstances, and with fiscal channels blocked, many will continue to look to Fed as the only possible source of stimulus.
WASHINGTON (Reuters) – The Federal Reserve appears to be edging closer to providing financial markets with more detail to gauge the likely path of monetary policy as a way to buttress a weak recovery.
The central bank held a wide-ranging debate on its communications strategy at a meeting earlier this month, minutes released on Tuesday showed, suggesting a shift in the way it frames policy may be its next step.
WASHINGTON, Nov 20 (Reuters) – When Lehman Brothers
collapsed in 2008 and shattered the belief that U.S. money
market funds would never “break the buck,” Washington rushed to
limit the damage.
But as Europe’s debt crisis threatens to put the U.S.
financial system under strain again, U.S. policymakers are
worried they cannot turn to those same, impromptu tools to
shore up the $2.6 trillion money markets industry.