The Fed's Potent Medicine Nov 5, 2009
Fed rate-setters voted unanimously to keep the federal funds rate at a rock-bottom range of zero to 0 ... "Inflation will remain subdued for some time," the Fed said in its , adding that weak conditions "are likely to warrant exceptionally low levels of the federal funds rate for an extended period.". (BusinessWeek)
Bernankeism - the artof spreading starvation Nov 5, 2009
As chairman of the Council of Economic Advisors and a Federal Reserve governor, Bernanke strongly supported policies that pushed the federal funds rate to 1% and inundated banks with liquidity during 2002-2005. As prime markets had limited absorptive capacity for productive borrowing, banks pushed liquidity into subprime markets with little consideration of the attendant risks. (Asia Times Online)
US eke out small gains after Fed news Nov 5, 2009
Stocks pushed higher in the hour following the FOMC statement, after the Fed kept its benchmark federal funds rate unchanged in a range of zero to 0. 25 per cent. The Dow climbed as high as 9928. (Sydney Morning Herald -- Business)
Fed holds low rates to support fragile recovery Nov 5, 2009
As widely expected, the FOMC held its key federal funds rate at a historic low of zero to 0 ... After a two-day policy meeting, the central bank said it expects that "economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period.". (Yahoo! Asia News)
Dollar falls Nov 5, 2009
The central bank maintained the target range for the federal funds rate at 0 to 1/4 percent, in line with expectations. It continues to anticipate that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period. (Xinhuanet, China)
Bernanke Tries to Acknowledge Rebound Without Foreshadowing Rate Increase Nov 4, 2009
Still, with unemployment rising, policy makers will reiterate their intent to hold the federal funds rate at exceptionally low levels, analysts said. The jobless rate reached a 26-year high of 9. (Bloomberg -- US)
Getting a Fix on the Fed Nov 3, 2009
It says: "economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period." Perhaps the Fed could expand this and say: with considerable economic slack and a likely moderate recovery, economic conditions are likely to warrant. Page. (BusinessWeek)
US Fed unlikely to change tack as recession ends Nov 2, 2009
The FOMC has held its federal funds rate target at zero to 0 ... Moody's Brusuelas predicted the FOMC statement would conclude that conditions will likely "warrant exceptionally low levels of the federal funds rate for an extended period," a phrase he noted had been in every statement since March. (Sydney Morning Herald -- Business)
Are Investors Ready for Higher Interest Rates? Oct 30, 2009
That's still a historically low rate, reflecting the fact that the is holding the short-term federal funds rate near zero in order to stimulate the economy ... The Fed's Open Market Committee said in a statement Sept. 23 that "economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period." Few expect the Fed to change its stance drastically at its Nov. 3-4 policy meeting. (BusinessWeek)
How to Tell Mortgage Rates Are Rising Oct 30, 2009
If it rises or the spread between it and the Federal Funds rate widens, then mortgage rate increases won t be far behind. Source: BusinesWeek. (Realtor Magazine Online)
When Will Mortgage Rates Go Up? Oct 28, 2009
Start by looking at the federal funds rate, which is what banks charge each other for borrowing funds overnight. In December of 2007, the federal funds rate was approximately 4 ... If it starts to climb or if the spread between it and the Federal Funds rate begins to widen it's a solid sign that interest rates (and therefore mortgage rates) will rise. (BusinessWeek)
Government Porkfare Is No Way to End Recession Oct 27, 2009
8 is heralding a rebound, as is the spread between the federal funds rate and 10-year Treasury note yield -- the leadingest of the 10 leading indicators, according to the Conference Board, the keeper of the LEI.. The spread was even steeper in the early 1990s, another period when an impaired banking system depressed the transmission mechanism. (Bloomberg -- Columnists)
Market Winners & Losers: Amazon, MEMC Electronic Materials Oct 24, 2009
The rate at which they make these loans is called the Federal Funds rate, which is set by the Federal Reserves Federal Open Market Committee. When you hear people chattering about how the Fed cut or hiked interest rates, this is what theyre talking about: the interest rate banks can charge for lending money from their reserves. (Fox News)
Dollar hits 14-month low against the euro Oct 22, 2009
5 percent key British rate is only slightly higher the than U.S. federal funds rate at a range near zero. Lower interest rates tend to weigh down a currency as investors transfer funds into higher-yielding assets. (MSNBC -- Business)
Investor Interpretation of Economic... Oct 21, 2009
Specifically, the Fed will lower the baseline Federal Funds rate. Though the maneuver never actually staves off a recession, it coincides with them quite consistently. (Suite101.com)
Treasuries Demand Shows No Lost Appetite as Dollar Sinks With Zero Returns Oct 19, 2009
The between the federal funds rate and the 10-year Treasury yield, now at 3. 19 percentage points, reached 3. (Bloomberg -- US)
What happens if the dollar crashes? Oct 19, 2009
The Federal Reserve is keeping the federal funds rate at a rock-bottom zero to 0. 25 percent to stimulate the U.S. economy and heal the banks, but a side result is the dollar has turned into the preferred fuel for an international speculative play that is weighing down the greenback. (MSNBC -- Business)
Report: Wasserstein Death Prompts Vesting of Stock Worth $188M Oct 17, 2009
To meet the reserve, the Fed has what's known as the discount window, which allows banks to borrow money for a short period of time at a higher interest rate (called the discount rate) than the official Federal Funds rate. It's called a window because it used to be an actual teller window, where banks would go to borrow from the federal government. (Fox News)
Fed sees 'restrained' recovery in US Oct 15, 2009
" "Overall, the economy was projected to expand over the remainder of 2009 and during 2010, but at a pace that was unlikely to reduce the unemployment rate appreciably," the minutes stated. At that meeting the Fed acknowledged a recovery was underway from prolonged recession but maintained its near-zero interest rate and trillion-plus dollar effort to support the fragile improvements. The panel voted unanimously at the meeting to maintain the federal funds rate of zero to 0.25 percent in place... (Yahoo! Asia News)
U.S. stocks rallied on Wednesday as upbeat earnings from Intel and JPMorgan Chase boosted market sentiment. Dow returned to above 10,000 points for the first time in a year.• U.S. Fed sees economy in "restrained" recovery Oct 15, 2009
" The central bank said that it will "maintain the target range for the federal funds rate at 0 to 1/4 percent" and to keep the rate at this historical low "for an extended period. " Special Report: Editor: Mu Xuequan Related Stories. (Xinhuanet, China)
6-month T-bill rates remain at record low Oct 14, 2009
Fed officials last month left the federal funds rate, the interest that banks charge each other, at a record low of zero to 0. 25 percent. (Boston Globe)
Survey: Most economists see recovery beginning Oct 14, 2009
Thus, the NABE panel which consists of 44 economists surveyed Sept. 2 through Sept. 24 expects the federal funds rate to remain at its current record low near zero until late next spring, before a gradual rise begins. "The good news is that this deep and long recession appears to be over, and with improving credit markets, the U.S. economy can return to solid growth next year without worry about rising inflation," said Reaser. (Yahoo News -- Technology)
US stocks up on earnings confidence Oct 13, 2009
At the last meeting, the Federal Open Market Committee (FOMC) voted unanimously to maintain the federal funds rate of zero to 0. 25 percent and pledged to continue a program of more than one trillion dollars to help keep credit flowing by purchasing mortgage securities and other bonds. (India Times)
Survey: Recession Over, Economists Say Oct 13, 2009
Thus, the NABE panel - which consists of 44 economists surveyed Sept. 2 through Sept. 24 - expects the federal funds rate to remain at its current record low near zero until late next spring, before a gradual rise begins ... So long as the federal funds rate to remain at its current record low near zero - the chance for our economy to recover is near zero. (CBS News)
Why Investors Should Bet Against the Dollar Oct 13, 2009
Meanwhile, the target range for the U.S. federal funds rate is 0% to 0. 25. (Time.com)
The Great Recession: Numbers Tell The Story Oct 11, 2009
75 percent: Federal funds rate two years ago. -- 1 percent: Fed funds rate last October. (Click2Houston, TX)
US Fed to tighten policy when outlook improves Oct 9, 2009
AFP - Friday, October 9. Federal Reserve chief Ben Bernanke signaled he was in no hurry to tighten monetary policy, saying action will be taken when the US economic outlook has "improved sufficiently.". (Yahoo! Asia News)
Stiglitz, Gross Worry About Deflation Oct 9, 2009
The federal funds rate target now stands at zero to 0. 25 percent. (Newsmax)
The Great ATM Robbery Oct 7, 2009
Then the Federal Reserve handed the bankers a gift by slashing the Federal Funds rate to zero. (Free money. (Slate)
Fed Officials Hint at Quick Reversal Oct 2, 2009
The federal funds rate has been at virtually zero since mid-December of 2008 ... The federal funds rate has been at virtually zero since mid-December of 2008. (Newsmax)
Reality, where art thou? Sep 30, 2009
Further nonsense like the declaration by the Federal Open Market Committee last Wednesday that "economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period" only encourages the unreality - if good quality borrowers can borrow short-term at a cost well below the rate of inflation (let alone the likely future rate of inflation), then fantasy continues to be subsidized. The Fed and the Bureau of Labor Statistics have managed for 14 years to... (Asia Times Online)
Plosser Says Federal Reserve Will Need to Avert a Second `Great Inflation' Sep 30, 2009
became Fed chairman in 1979 and pushed the federal funds rate to as high as 20 percent to throttle inflation in 1980. The inflation rate, as measured by the consumer price index, rose to 14. (Bloomberg -- US)
Treasury Pulse Sep 26, 2009
THE decision by the Federal Open Market Committee (FOMC) to keep the federal funds rate in the targeted range of 0%-0. 25% was widely anticipated. (The Star Online, Malaysia -- Business)
Economics focus: Much ado about multipliers Sep 26, 2009
Economists in the Obama administration, who assume that the federal funds rate stays constant for a four-year period, expect a multiplier of 1. 6 for government purchases and 1. (The Economist)
Dollar comes back from year low Sep 25, 2009
The key federal funds rate - what banks charge each other on short-term dollar loans - remains at a range near zero. On Thursday, the National Association of Realtors said existing home sales fell 2. (Business Report, South Africa)
Fed May Need to Be Aggressive in Reversing Actions, Warsh Writes in WSJ Sep 25, 2009
Longer-term inflation expectations are stable, and economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period. . (Bloomberg -- US)
U.S. Fed leaves interest rate unchanged Sep 24, 2009
Wrapping a two-day meeting, the Federal Open Market Committee (FOMC) said in a statement that it will maintain the target range for the federal funds rate at 0 to 0. 25 percent, indicating that it will leave the benchmark interest rate at exceptional low levels "for an extended period" of time. (Xinhuanet, China)
Fed acknowledges recovery under way, extends stimulus Sep 24, 2009
The Federal Open Market Committee voted unanimously to maintain the federal funds rate of zero to 0 ... The FOMC statement said it expects that sluggish conditions will "warrant exceptionally low levels of the federal funds rate for an extended period.". (Yahoo! Asia News)
READ: The full Fed statement Sep 24, 2009
The Committee will maintain the target range for the federal funds rate at 0 to 1/4% and continues to anticipate that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period. To provide support to mortgage lending and housing markets and to improve overall conditions in private credit markets, the Federal Reserve will purchase a total of $1. (USA Today -- Money)
The Fed's Cautious Return to Normalcy Sep 24, 2009
With the economy still weak, the committee kept in place its most important stimulus namely, holding the federal funds rate at a rock-bottom zero to 0 ... But the official statement gave no hint that the Fed is about to shut off that hose, saying the committee "continues to anticipate that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period.". (BusinessWeek)
Stocks Slump in Post-FOMC Reversal Sep 24, 2009
indexes closed solidly lower Wednesday, reversing earlier gains in the final hour of trading after the gave an upbeat assessment of the economy but remained cautious about the recovery in a released at the conclusion of its two-day policy meeting at 2:15 p.m. ET. The Fed kept the target range for the federal funds rate at 0 to 1/4 percent. The Fed characterized inflation as "subdued", and said it would extend its program to purchase mortgage-backed securities and agency debt through the first... (BusinessWeek)
Treasury Prices Rebound After Fed Announcement Sep 24, 2009
The Fed said that while the economy is improving, "conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period.". Traders have also been concerned about weakening demand for new government debt. (ABC News -- Wire)
Fed keeps near-zero rates, sees rebound Sep 24, 2009
The FOMC statement said it expects that sluggish conditions will "warrant exceptionally low levels of the federal funds rate for an extended period". The statement noted however that "economic activity has picked up following its severe downturn" amid improvements in financial markets and the housing sector. (Sydney Morning Herald -- Business)
U.S. Fed slows pace of housing aid program amid upbeat Sep 24, 2009
Nurturing the current economic recovery, the Federal Reserve also decided on Wednesday to leave the federal funds rate at 0 to 0. 25 percent and indicated that it will leave the benchmark interest rate at exceptional low levels "for an extended period" of time. (Xinhuanet, China)
Dollar edges up ahead of G20 summit Sep 24, 2009
On Thursday morning (AEST) the US Federal Open Market Committee (FOMC) left the US federal funds rate unchanged in a target range between zero and 0. 25 per cent, as expected, after its two-day meeting ended in Washington. (Sydney Morning Herald -- Business)
Fed remains in stimulus mode but eyes exit strategy Sep 23, 2009
Donald Ratajczak, economist at Georgia State University and consultant to Morgan Keegan, said he believes the federal funds rate "will remain near zero until employment grows and that will not happen until sometime in the winter at the earliest." ... "I expect the Fed will keep the same wording for the directive with respect to the Fed funds rate, specifically to maintain 'exceptionally low levels of the Federal funds rate for an extended period,'" said Siegel ... With the federal funds rate... (Yahoo! Asia News)
Fed May Signal Economic Recovery Has Begun While Keeping Rate Near Zero Sep 23, 2009
Most FOMC officials are worried expectations for a higher federal funds rate will push up yields on 10-year Treasury notes, increasing mortgage costs, said , an economist at JPMorgan Chase & Co. in New York and a former member of the Feds research staff. Probably two thirds of the committee is concerned that being too quick to embrace the stronger growth story could lead the market to price in sooner rate hikes and tighter financial conditions than they would like, he said. (Bloomberg -- US)
Euro Breaks Above $1.48; Dollar at Year Lows Sep 23, 2009
The Federal Reserve is also expected to keep the federal funds rate at a range near zero when it announces its decision Wednesday. Investors will be looking to the G-20 meeting in Pittsburgh this week for more indications on where the economy is headed. (ABC News -- Wire)
Oil prices tumbles to below $70 a barrel Sep 22, 2009
The Fed is widely expected to hold its key federal funds rate at zero to 0. 25% as the world's largest economy shows early signs of emerging from a long recession. (Business Report, South Africa)
Shrinking Money Supply Dampens Inflation Fears Sep 22, 2009
The rate setters are highly likely to leave the federal funds rate at of just zero to 0 ... Internally there will probably be a vigorous discussion about when to start raising rates, but in its public statement the Open Market Committee is likely to reaffirm its commitment to keeping the federal funds rate at rock bottom for a considerable, unspecified amount of time. (BusinessWeek)
It'll take a while for U.S. to recover from deep slump Sep 21, 2009
Federal Reserve Chairman Ben S. Bernanke and his fellow central-bank colleagues might hold their target for the federal funds rate between zero and 0. 25 percent through 2010, said Kasman. (Honolulu Advertiser)
US Fed expected to hold steady Sep 20, 2009
With the federal funds rate seemingly frozen at zero to 0. 25 per cent, the central bank's only policy option revolves around its various liquidity programs implemented since last year's credit freeze. (Sydney Morning Herald -- Business)
Fed expected to hold steady to back fragile recovery Sep 20, 2009
" With the federal funds rate seemingly frozen at zero to 0.25 per cent, the central bank's only policy option revolves around its various liquidity programmes implemented since last year's credit freeze. The Fed last month indicated it would conclude its 300-billion-dollar programme to purchase Treasury bonds, part of a programme to bring down interest rates which some call 'Quantitative Easing.' It must decide however on whether to extend into 2010 a trillion-dollar programme to purchase... (Channelnewsasia.com)
Volcker Sees `Long Slog' for U.S. Economy, Seeks Limits on Biggest Banks Sep 17, 2009
Volcker, who pushed the federal funds rate as high as 20 percent to throttle inflation in 1980, also renewed his call to restrict the activities of banks so large that their collapse would threaten the financial system. We have a long way to go to get back the point of fully utilizing our economic resources and restoring something approximating full employment, Volcker, 82, said at a conference hosted by the Association for Corporate Growth, a group for executives who deal with mergers and... (Bloomberg -- US)
End the Fed -- A Preview Sep 17, 2009
It can set the federal funds rate at a level to its liking and influence interest across the entire economy. It intervenes in currency markets. (The American Conservative)
Politics of the financial crisis Sep 17, 2009
Only in the January 21, 2008, FMOC meeting did the Fed belatedly slashed the benchmark federal funds rate by 75 basis points to 3. 5%, the biggest one-time reduction in decades. (Asia Times Online)
Wholesale prices soar 1.7 percent Sep 16, 2009
Federal Reserve policymakers, who meet next week, are expected to keep the federal funds rate, the interest that banks charge each other on overnight loans, at a record low of zero to 0. 25 percent. (MSNBC -- Business)
Jobless Rate Hits 9.7%, Highest Level Since 1983 Sep 5, 2009
In August, officials held the federal funds rate a range near zero. According to Friday's employment report, average hourly earnings were up $0. (SmartMoney)
Bernanke's Low-Rate Fed Future Is Secure Aug 26, 2009
The Federal Reserve chairman's reappointment increases the chances that the federal funds rate will stay below 1% for at least another year ... Traders in the money market are now expecting the federal funds rate to remain at 0 ... Critics say Bernanke is repeating a mistake that made in 2002-04, when the federal funds rate bottomed out at 1% which they say set the stage for the Great Recession of 2007-09. (BusinessWeek)
Taylor Rule Change Will Hurt Fed's Inflation Fight: John Taylor Aug 25, 2009
This suggests that if inflation rises or the GDP gap narrows, then the Fed will have to increase the federal funds rate, perhaps early next year. So why the debate. (Bloomberg -- Columnists)
Text of his comments Aug 22, 2009
And in early September, when the target for the federal funds rate was 2 percent, investors appeared to see little chance that the federal funds rate would be below 1-3/4 percent six months later ... In response to these developments, the Federal Reserve expended the remaining ammunition in the traditional arsenal of monetary policy, bringing the federal funds rate down, in steps, to a target range of 0 to 25 basis points by mid-December of last year. (MSNBC -- Business)
Click to read: How New Credit Card Rules Affect You Aug 21, 2009
"So while the government is eliminating a card company's ability to change card terms, card companies are combating that by essentially raising interest rates by switching from fixed rates to variable rates. And because they're switching to variable rates, that means the rate will fluctuate depending on changes to the federal funds rate," Martin said. "Right now variable rates are pretty low (3.25 percent as of July 15, 2009). But when rates begin to rise, guess what? So will your interest rate... (CBS News -- Early Show)
Leading indicators signal recession's end Aug 21, 2009
The biggest gainer was the "interest rate spread," the difference between yields on 10-year Treasurys and the federal funds rate, which the Federal Reserve is keeping at a record low near zero. The funds rate is the interest banks charge each other for loans. (MSNBC -- Business)
The U.S. economy will experience a U-shaped recovery and the recession will come to an end this year, a leading U.S. economist said recently. • Global economic recovery requires delicate sustaining acts Aug 19, 2009
The Federal Reserve can leave the policy rate -- the federal funds rate -- at zero if it needs to, and, because inflation expectations are more likely to increase than to decrease, real rates are likely to remain negative. However, he said that the U.S. policymakers cannot count on low interest rates alone to deliver a sustained U.S. recovery. (Xinhuanet, China)
US industrial production climbs in July Aug 15, 2009
On Wednesday, the Fed gave no indication that it would be increasing the federal funds rate from its near zero level, a policy it adopted in December. It also said it planned to complete the $300bn in Treasury purchases it announced in March, which further eased monetary policy, in October, rather than September as previously expected. (FT.com -- Markets)
