Federal Reserve System
Keith Fitz-Gerald Nails It on Today's FOMC Meeting
Almost every major news outlet predicted a taper coming out of today's FOMC meeting, but Money Morning's Chief Investment Strategist Keith Fitz-Gerald went on the record months ago correctly predicting there would be no taper.
The major news outlets were wrong, and Fitz-Gerald nailed it…Read more...
Four Reasons the Next Fed Chairman Will Fail
Larry Summers, supposedly U.S. President Barack Obama's favorite for the job, caused the markets to soar when he took himself out of the running.Read more...
Today's FOMC Meeting Cheat Sheet
Today's FOMC meeting will kick off a two-day discussion of economic policy – and will leave unprepared investors confused…
Both the FOMC policy statement and its economic and market projections will be released on Wednesday at 2 p.m. EDT and will be followed by U.S. Federal Reserve Chairman Ben Bernanke's press conference at 2:30 p.m.
[Editor's Note: Stay tuned to Money Morning for a Wednesday FOMC Meeting roundup.]
The question hot on everyone's tongue is what the FOMC will decide to do about the $85 billion in monthly bond buying – will the inevitable quantitative easing (QE) taper finally begin?
The Next Federal Reserve Chairman: Summers Out, Yellen In
Larry Summers shocked Wall Street and Washington circles on Sunday by withdrawing his name for consideration as the next U.S. Federal Reserve chairman.
Summers wrote in a letter to U.S. President Barack Obama, "I have reluctantly concluded that any possible confirmation process for me would be acrimonious and would not serve the interest of the Federal Reserve, the Administration, or ultimately, the interests of the nation's ongoing economic recovery."
His decision comes at a critical point for the Federal Reserve.To continue reading, please click here...
How the Fed QE Taper Will Affect Foreign Markets
Hints from the U.S. Federal Reserve this week that the quantitative easing (QE) taper is near pushed the Dow down 105 points Wednesday – but the idea of less Fed stimulus has caused much more turmoil in certain overseas markets.
The problem: A corresponding hike in U.S. debt yields has fueled higher borrowing costs around the globe. This has led to the flight of cheap capital out of emerging currencies and markets.
That triggered the following reactions:
Check Out What the FOMC Meeting Minutes Did to the Stock Market Today
In one of the most highly anticipated releases of the year, the Federal Open Market Committee (FOMC) meeting minutes from July 30-31 were released today (Wednesday).
They will be picked apart for days – but here's what you need to know.
Fed Meeting at Jackson Hole Often Brings Market Fireworks; Here's What to Expect
Thursday, Aug. 22 marks the start of the annual Fed meeting at Jackson Hole, WY – although this one will be much different than those of years past…
Every year since 1981, the U.S. Federal Reserve Bank of Kansas City has invited a slew of economic luminaries to its annual symposium in tony Jackson Hole.
The Jackson Lake Lodge, nestled among two lakes on the Willow Flats that front the imposing Teton Range, can host central bankers from any one of the world's largest economies, as well as cutting-edge economic thinkers and theorists from global academia.
Global market- and bank-watchers look to the Fed meeting at Jackson Hole as a source of critical information regarding potential shifts in macroeconomic policy.
Investors look to the meeting to bring a healthy, if fleeting, shot in the arm to the markets and share prices. Nearly any unexpected remark or errant word coming from the proceedings has the ability to rock the markets.
FOMC Meeting: Fed Just Backtracked on QE Taper Talk
The Federal Open Market Committee (FOMC) meeting ended today (Wednesday) with word that the Fed plans to the stay the course on QE for now, backtracking from earlier hints it might begin tapering this fall.
"For all those looking for clear guidance on when quantitative easing will end, well, you will have to wait a little longer," Joel Naroff, president and chief economist at Naroff Economic Advisors Inc., wrote in a research note. "Indeed, there may have been some walking backwards today."
Money Morning Capital Wave Strategist Shah Gilani said it's no surprise the Fed has backed away from talk of tapering.
Exclusive: Obama Tells Money Morning Why He Just Loves Larry Summers…
Larry Summers for Fed Chief… He's got my vote. Absolutely!
Why? You just have to get to know the guy and you'll see he's perfectly qualified to head the Federal Reserve.
Here's just part of his resume.
From 1982-1983, Larry Summers was on staff at Ronald Reagan's Council of Economic Advisers. That's where Lawrence of Enablers earned his "Deregulate Everything" T-shirt.
After his brief stint on the Gipper's Council, where he was taught how real pros corral free markets for personal profit, the Enabler headed back to Harvard to teach kids (and himself) how to squeeze personal wealth out of mere economic theory.
He got his next shot at stardom as Chief Economist of the World Bank in 1991. He was there until 1993.
While there he wasted no time shining a light on himself.
In a 1991 interview he famously said: