SubscribeAll Posts Tagged With: "Federal Reserve"
Is Commercial Real Estate the Next Major Issue for the FED?
Having last month addressed concerns about inflation by outlining a stimulus “exit strategy,” U.S. Federal Reserve Chairman Ben S. Bernanke may turn his attention to the growing threat posed by commercial real estate at the Federal Open Market Committee’s (FOMC) two-day meeting taking place tomorrow (Tuesday) and Wednesday.
As Money Morning warned in an investigative report that ran in early April, the stumbling U.S. commercial real estate sector was developing into a financial black hole that was threatening to blot out the resurgence of the U.S. economy. Commercial real estate prices have been in sharp decline for the past two years,…
11Aug2009 | Money Morning | 0 comments | ContinuedFederal Reserve Fight: Whose Side Are You On?
A debate over the future of the U.S. Federal Reserve is taking place in the halls of Congress.
On one side is U.S. President Barack Obama and his plan to expand the authority of the Federal Reserve. In addition to its current powers, Obama plans to give the Fed regulatory authority over large financial institutions that are considered "too big to fail.”
On the other side is U.S. Rep. Ron Paul, R-TX, who has gathered 250 signatures for a proposal to audit the Federal Reserve. This audit, by Paul’s own admission is only a down payment towards his overriding goal…
22Jul2009 | Money Morning | 0 comments | ContinuedObama’s Blueprint for the U.S. Financial Crisis
The first 100 days of President Barack Obama’s administration officially begin today (Wednesday). But the reality is that President Obama already has a solid head start, as he and his advisor have been working for months to establish the groundwork for one of the most ambitious – and most important – economic-stimulus plans in U.S. history.
President Obama’s team was hard at work weeks before his Jan. 20 inauguration, crafting an ambitious $825 billion economic stimulus plan, parlaying with the U.S. Treasury Department and Congress to ensure its speedy implementation, and assembling the team the nation’s 44th chief executive felt he…
21Jan2009 | Money Morning | 0 comments | ContinuedMore nonsense from the FED
FED wants to issue its own bonds
The Federal Reserve is considering issuing its own debt for the first time, a move that would give the central bank additional flexibility as it tries to stabilize rocky financial markets.
Government debt issuance is largely the province of the Treasury Department, and the Fed already can print as much money as it wants. But as the credit crisis drags on and the economy suffers from recession, Fed officials are looking broadly for new financial tools.
Some economists worry about the consequences of this approach. Fed officials could find it challenging to remove the cash from…
Fed Governor admits Fed is already engaged in quanatative easing
The Federal Reserve is already engaged in unorthodox “quantitative easing” and should prepare for the possibility that more extreme measures could be needed to guard against deflation, Don Kohn, its vice-chairman, said on Wednesday.
“We have already engaged in forms of quantitative easing,” Mr Kohn told the Cato Institute, a think-tank. He said the US central bank should consider “what other forms of quantitative easing might happen as a contingency plan”.
Strictly speaking, this is not outright quantitative easing because the Fed continues to mop up the excess reserves it creates to keep the target interest rate positive. But the central bank…
What’s Up, Doc?
Source: Bud Conrad, Casey Research
Under Bernanke’s direction, the Federal Reserve has completely rewritten its mission. Many articles in the International Speculator and The Casey Report have reported the strange growth in the loans they have made and explained that Bernanke has, for a long time, espoused unconventional actions to avert deflation and to expand the economy. So the charts below tell that story, and it is truly amazing.
The Federal Reserve was never envisioned to be lender of last resort to a whole slew of investment banks, money market mutual funds, and commercial paper issuers.
The situation is not easy to sort out,…
14Nov2008 | The Gold Report | Comments Off | ContinuedFed’s Out of Control!
Oct. 29 (Bloomberg) — The Federal Reserve cut its benchmark interest rate by half a percentage point to 1 percent, matching a half-century low, in an effort to avert the worst U.S. economic downturn in the postwar era.
We U.S. government and Federal Reserve continue to give us signs as to where they stand, where we’re going, and how were going to get there. Cutting the Fed Funds Rate to 1%, is just one more step towards zero, or next to zero interest rates.
Big Cut, Big Deal, of Big Woop?
This was not a big surprise, and the only question coming into…
30Oct2008 | Oxbury Research | Comments Off | ContinuedFederal Reserve, Bank of China Cut Interest Rates as Financial Crisis Deepens
Federal Reserve policymakers yesterday (Wednesday) reduced the benchmark Federal Funds rate to 1.0%, an aggressive half-percentage-point cut that central bank Chairman Ben S. Bernanke’s latest attempt to keep the widening financial crisis from tipping the world into a global recession.
“The pace of economic activity appears to have slowed markedly, owing importantly to a decline in consumer expenditures,” the Fed said in a statement. “Business equipment spending and industrial production have weakened in recent months, and slowing economic activity in many foreign economies is damping the prospects for U.S. exports.
“Moreover,” the statement added, “the intensification of financial market turmoil is likely…
30Oct2008 | Money Morning | Comments Off | ContinuedFed Steps in with $600 Billion Plan to Bolster Money Market Funds
The U.S. Federal Reserve yesterday (Tuesday) announced a new program that will provide as much as $600 million in emergency funding to money-market funds should the ongoing global financial crisis once again cause the short-term credit markets to freeze out borrowers.
The newly created Money Market Investor Funding Facility (MMIFF) will help money market funds meet redemption needs and keep from “breaking the buck” – dropping below the normal $1 in net asset value – as The Reserve Primary Fund (RFIXX) did after the collapse of Wall Street investment-banking giant Lehman Brothers Holdings Inc. (OTC: LEHMQ). Struggling money-market funds that have…
22Oct2008 | Money Morning | Comments Off | ContinuedBear market won’t be hibernating anytime soon
Inverse ETFs best bet for bigger, easier profits
In a speech last Tuesday, Fed Governor Janet Yellen became the first senior member of the Federal Reserve to proclaim that the U.S. economy is in a recession.
Last fall, and again in January, I outlined why I expected a recession would begin this year, and why it would probably be “the worst in 25 years, much worse than the mild recessions of 1991 and 2001, which most people remember as typical recessions.”
Wall Street and the Federal Reserve said otherwise. Until just a couple of months ago the majority of economists, and the Federal Reserve,…
21Oct2008 | Street Smart Report | Comments Off | Continued
Loading ...
