One of these days, the Federal Reserve is going to raise interest rates, but don't hold your breath. Notwithstanding surprisingly strong second quarter gross domestic product growth, the Fed still has grave doubts about the economic outlook given continued housing and financial market fragility. And, if the Fed believes its...
Highlights and Key Issues * The economic headwinds have intensified and caused us to downgrade the forecast for the next several quarters. The impact of the tax rebates has faded more quickly than expected and, with confidence at recession levels, consumers have begun to retrench. * The decline in payroll...
The Federal Reserve held US interest rates steady last night, continuing its wobbly tightrope walk between fears of surging inflation and concern that the credit crisis could send the economy into a dive. Holding the main interest rate at 2 per cent, the Federal Open Market Committee FOMC...
Along with the minutes of the October 30-31, 2007, meeting, the Federal Open Market Committee released a summary of its members' forecasts of key economic variables, a practice that is to be continued. Does this change in communication policy imply that the Fed is embarking on an undeclared policy of...
LONDON AFP — The dollar fell against the euro and rose slightly versus the yen on Wednesday as the Federal Reserve appeared set to maintain the current level of US interest rates, analysts said. Meanwhile, European Central Bank head Jean-Claude Trichet played down any suggestion of several rate rises...
The Federal Open Market Committee of the Federal Reserve dropped its overnight target rates by .25%, the seventh rate cut since September 2007. In announcing the move, the FOMC said “the substantial easing of monetary policy to date, combined with ongoing measures to foster market liquidity, should help to...
WASHINGTON AFP — The Federal Reserve delivered an expected quarter-point rate cut on Wednesday but disappointed those who had been seeking a clear signal for a pause following a series of aggressive rate moves. The action lowered the federal funds rate to 2.0 percent, down sharply from 5.25 percent...
The Federal Reserve delivered another quarter-point cut in US interest rates yesterday and hinted that its dramatic period of monetary easing may be coming to a close. The decision came within hours of data showing that the US economy continued to grow in the first three months of...
NEW YORK AFP — Wall Street stocks drifted in a tight range in opening trade Tuesday with investors hesitant ahead of the first estimate of US economic output in the first quarter and a Federal Reserve policy decision. In the first 10 minutes, the Dow Jones Industrial Average edged...
Business News IN BRIEF *The staff of the Federal Reserve were privately predicting that the US was already in a recession when members of the Federal Open Market Committee slashed interest rates by three-quarters of a percentage point on 18 March. The minutes of the meeting, released yesterday,...
In the past thirty years, it has been claimed that Republicans tend to favor relatively restrictive monetary policy while Democrats favor relatively accommodative monetary policy. Another claim is that, regardless of which political party is in power, monetary policy tends to be relatively restrictive during the first two years of...
ABSTRACT This paper analyzes the reaction of the stock market to the monetary policy actions of the Federal Reserve Fed. Specifically, we examine the reaction of the stock market to the monetary policy announcements by the Federal Open Market Committee FOMC of the Fed. We show that the full...
WASHINGTON, Feb 27, 2008 AFP — Federal Reserve chairman Ben Bernanke told Congress on Wednesday that weak US economic growth may prompt the central bank to cut interest rates further to ward off a severe downturn. Bernanke said "downside risks" to growth were buffeting the US economy and stressed...
WASHINGTON AFP — Federal Reserve chairman Ben Bernanke told Congress Wednesday that weak US economic growth may prompt the central bank is to cut short-term interest rates further if needed. Bernanke cited "downside risks" to economic growth, but he said the central bank is prepared to take action if...
LONDON AFP — The dollar dipped Wednesday against major currencies before another likely interest rate cut from the US Federal Reserve, analysts said. In European trading, the euro climbed to 1.4780 dollars from 1.4774 dollars in New York late on Tuesday. The dollar fell to 106.83 yen from...
WASHINGTON AFP — The US Federal Reserve slashed its base federal funds rate a half-point Wednesday to 3.0 percent in its second cut in eight days to help an economy that some say is on the brink of recession. The action extends an aggressive effort to ease borrowing costs...
WASHINGTON AFP — The Federal Reserve was mainly concerned about economic growth when it lowered interest rates by a quarter point last month, with a dissenter calling for a "more aggressive" cut, according to the minutes of the meeting released Wednesday. "Real GDP gross domestic product was anticipated to...
This article was originally presented as a speech to Market News International in New York, New York, September 28, 2007.Federal Reserve Bank of St. Louis Review, January/February 2008, 90(1), pp. 1-7.Every one looks at the world through lenses colored by his or her own experiences and background. Over my nine...
The year ahead will provide a test of the U.S. economy's "resilience," about which Federal Reserve officials have so often spoken. The Fed's own flexibility, guts and credibility may also be tested. So far, the Fed has done all that reasonably could have been expected. In the second half of...
The Federal Reserve Bank Open Market Committee will release economic forecasts quarterly and expand the content of those projections, Fed Chairman Ben Bernanke announced on Nov. 14. Bernanke said the central bank will also extend its projection horizon to three years from the current two. The changes call for the...
