Leveragenot level Nov 7, 2009
So the combined effect of the Fed policy of a zero Fed funds rate, quantitative easing and massive purchase of long-term debt instruments, is seemingly making the world safe - for now - for the mother of all carry trades and mother of all highly leveraged global asset bubbles ... While the Federal Open Market Committee "continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant... (Asia Times Online)
Oil prices drop as US jobless spikes Nov 7, 2009
As expected, the Fed held its key federal funds rate at a historic low of zero to 0. 25 per cent, where it has been since last December to help pull the economy out of the worst downturn since the Great Depression. (India Times)
Employers in U.S. Probably Cut Fewest Jobs in a Year as Recovery Took Hold Nov 6, 2009
Payrolls in U.S. Probably Fell at Slower Pace, Joblessness Rose - Bloomberg. Updated: New York, Nov 06 04:21 London, Nov 06 09:21 Tokyo, Nov 06 18:21. (Bloomberg -- US)
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)
READ THE STATEMENT: What the Fed said Nov 5, 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, 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. To provide support to mortgage lending and housing markets and to improve overall conditions in private credit markets, the Federal Reserve will purchase a... (USA Today -- Money)
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)
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)
Fed holds key interest rate near zero Nov 5, 2009
Against this backdrop, the Fed decided to hold the key interest rate, or federal funds rate, which commercial banks charge each other for overnight loans, unchanged at a record low of between zero to 0. 25 percent. (Xinhuanet, China)
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 Again Pledges to Hold Rates at Record Lows Nov 5, 2009
As expected, the Fed kept its benchmark federal funds rate unchanged in a range of zero to 0. 25 percent, and said the economy had "continued to pick up" since its last policy-setting meeting in September. (Newsmax)
Fed Reserve holds rates, says economy picking up Nov 5, 2009
" onclick="Next();" src="/images/butt_next. " Most analysts had expected the central bank to hold the near-zero base rate, where it has been since last December to help kick-start the economy out of the worst downturn since the Great Depression. The economy grew for the first time in a year in the third quarter - at a 3.5 percent annual rate in the July-September period - largely spurred by government stimulus spending. Since its last meeting on September 22-23, the FOMC said the information it... (Channelnewsasia.com)
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)
Stocks Finish Mixed after Fed Statement Nov 5, 2009
The FOMC said it continues to anticipate that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period, echoing language from ... "As we expected, the FOMC kept its central message unchanged, noting that 'economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period', said Bank of America Merrill Lynch economist Drew Matus in a note Wednesday. "In our view, they remain a long way from... (BusinessWeek)
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 ... Between the fourth quarter of 2008 and January of 2009, the Fed announced it planned to drop the fed funds rate to between 0% and 0. (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 ... This begs the question: If these are essentially loans between banks, why is the Fed Funds rate so important for the rest of the economy ... Bank A lends Bank B $10,000 at a Fed Funds rate of 5. (Fox News)
Guaranty Bancorp Announces 2009 Third Quarter Financial Results Oct 24, 2009
The decline in net interest margin from the third quarter 2008 to the third quarter 2009 is mostly attributable to the greater than 175 basis point cut in the target federal funds rate by the Federal Open Market Committee of the Federal Reserve Board during the fourth quarter 2008. The targeted federal funds rate was 2 ... 0 million unfavorable rate variance due to a 95 basis point decrease in net interest margin, primarily attributable to the Company being asset sensitive coupled with a greater... (Primezone Releases)
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)
Flushing Financial Corporation Reports 2009 Third Quarter Earnings Increase of 65% to $0.33 Per Diluted Common Share; Core Earnings Increase of 3.7% to $0.28 Per Diluted Common Share Oct 21, 2009
The decrease in the cost of interest-bearing liabilities is primarily attributable to the Federal Open Market Committee ("FOMC") lowering the overnight interest rate throughout 2008, and maintaining the targeted Fed Funds rate in a range of 0 ... The decrease in the cost of interest-bearing liabilities is primarily attributed to the FOMC lowering the overnight interest rate throughout 2008, and maintaining the targeted Fed Funds rate in a range of 0. (Primezone Releases)
Investor Interpretation of Economic... Oct 21, 2009
Unemployment, capacity utilization, the Fed Funds rate, and the inflation rate are the most accurate economic indicators investors can use to spot a recession ... Falling Fed Funds Rate ... Specifically, the Fed will lower the baseline Federal Funds rate. (Suite101.com)
Stay with gold and gold equities Oct 21, 2009
The most important driver of the gold price is the real Fed Funds rate, says Mr Garthwaite. If the inflation adjusted Fed Funds rate is below 2 per cent, the gold price tends to rise. (FT.com -- Markets)
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 ... The funds rate has been at that level since December. (Boston Globe)
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)
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)
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 ... 25 percent: Fed funds rate today. (Click2Houston, TX)
Stiglitz, Gross Worry About Deflation Oct 9, 2009
The federal funds rate target now stands at zero to 0. 25 percent. (Newsmax)
Bernanke Says Fed Will Be Ready to Tighten Policy When Economy Improves Oct 9, 2009
Money is free and easy right now, and the minute the job losses halt, you can bet the Fed will stop talking about exit strategies, including lifting the Fed funds rate, and start implementing them. . (Bloomberg -- US)
Fed's Hoenig: Economy improving; 2nd recession unlikely Oct 9, 2009
Hoenig said that the Fed should begin raising rates sooner rather than later, and that a fed funds rate of 1 to 2 percent "is not tight monetary policy -- it is still very accommodative.". Hoenig added, "Even if we were to start immediately, much time would pass before incremental increases could be considered tight or even neutral policy.". (Denver Business Journal, CO)
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)
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)
Stop The Spending And Cut The Taxes Oct 3, 2009
It will recover because the Federal Reserve cut its benchmark funds rate to zero the lowest level ever last December. In essence, they've been giving money away for free. (Investors Business Daily)
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)
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)
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)
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)
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)
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)
Experts Talk Stocks, the Economy, and the Fed's Next Move Sep 25, 2009
"Fed watcher" K. Guha wrote that "most policymakers presently anticipate that the first rate hike will not come before the second half of 2010." This fits in with our view that the Fed will commence tightening with a 25-basis-point hike [in the Fed funds rate target] in the third quarter of 2010. The article also observes the Fed, which wants to establish the mechanisms for tightening well in advance, is considering the possibility of reverse repo transactions with money market mutual funds... (BusinessWeek)
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)
Why dropping interest rates may help create a new bubble Sep 25, 2009
That asymmetry has translated into a successively lower funds rate to treat the fallout from each successive asset bubble, until it reached absolute zero last December. I'm not sure what that says about the economy. (Sydney Morning Herald -- Business)
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)
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)
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)
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)
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 important take-aways from the September Fed meeting are that "the Fed has no intention of raising the fed funds rate for the foreseeable future, but is... (BusinessWeek)
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)
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 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)
Fed's Focus on Exit Ignores Unguarded Entrance Sep 23, 2009
That asymmetry has translated into a successively lower funds rate to treat the fallout from each successive asset bubble until it reached absolute zero last December. Im not sure what that says about the economy or what it means for Fed policy in the future. (Bloomberg -- Columnists)
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)
Asia Currencies Gain, Led by Won, on Global Economic Recovery, Fund Inflow Sep 23, 2009
Our view is that the Fed wont change its statement, so wed be very surprised if they changed the reference to exceptionally low levels of the fed funds rate. . (Bloomberg -- Japan)
