By Jason Simpkins Associate Editor Until recently, Chairman Ben S. Bernanke was charged with the unenviable job of balancing the need to sustain economic growth in the face of mounting inflationary pressures. But the developments of this past weekend have drastically altered the economic landscape and recent activity will certainly guide the Federal Open Market […]
Category
Federal Reserve System
Fed Plan Sends Dow Soaring Over 400 Points
By Jennifer Yousfi Managing Editor News that the U.S. Federal Reserve will offer $200 billion in Treasuries in exchange for debt that includes mortgage-backed securities (MBS), increasing liquidity in the financial industry, spurred the markets to their largest rally in five weeks yesterday (Tuesday). "They're trying to put out fires to the best extent they […]
Mortgage Rates Rise, Despite Fed Cuts
By Jennifer Yousfi Managing Editor Despite a 1.25% reduction in the Federal Funds Rate last month, mortgage interest rates have not decreased according to a survey released today (Wednesday) from the Mortgage Bankers Association (MBA). According to the MBA survey, interest rates for 30-year fixed-rate mortgages averaged 5.72% last week, up from 5.61% the week […]
Until the Fed Feeds Us More Salad and Fewer Twinkies, Speculative Bubbles Will Remain a Risk
By Peter D. Schiff Guest Columnist Although the U.S. Federal Reserve still believes that a recession is unlikely to occur, central bank Chairman Ben S. Bernanke & Co. last Wednesday cut interest rates by an additional half a percentage point, following up on the prior week's emergency rate reduction of three quarters of a percentage […]
Fed Comes Through with Expected 50 Basis Point Cut, But Markets Still Falter
By Jennifer Yousfi Managing Editor The U.S. Federal Reserve yesterday delivered the half a point interest-rate cut the market was expecting yesterday (Wednesday) – and hinted that more reductions could come – but an afternoon rally was snuffed out by investor fears that economic conditions will continue to worsen and that bond insurers may be […]
A High-Wire Act: Investors Watch as Fed Struggles to Balance Inflation Fears, Growth Pressures
By Jennifer Yousfi Managing Editor When U.S. Federal Reserve policymakers conclude their two-day meeting today (Wednesday), investors are betting the central bank will announce a hefty reduction in interest rates for the second time in just over a week. But some analysts are concerned that with a strong durable goods report and some unexpectedly good […]
Fed Rate Cuts May Bode Well for the Greenback
By Jason Simpkins Associate Editor Just one day after the U.S. Federal Reserve surprised the global securities markets with its biggest rate cut in nearly 25 years, investors questioned whether the central bank action will do further damage to the downtrodden dollar or give the greenback a new lease on life. The answer depends largely […]
Fed Fans Optimism and Fears With Surprise Rate Cut
By William Patalon III Executive Editor Money Morning/The Money Map Report Faced with plunging markets abroad and intensifying recession fears here at home, the U.S. Federal Reserve yesterday (Tuesday) slashed its benchmark interest rate by three quarters of a percentage point, its single-biggest reduction in nearly 25 years. In a related development yesterday, the Bush […]
Walls Closing In On The Fed As Inflation Rises
By Jason Simpkins Associate Editor Consumer prices rose a seasonally adjusted 0.8% in November, the sharpest increase in more than two years, according to the Labor Department's Consumer Price Index. Rising consumer prices indicate the threat to the U.S. economy posed by inflation has increased greatly since the Federal Reserve began cutting interest rates with […]
Fed-Led Global Intervention Gives Investors New Hope the Day After Rate Cut Disappointment
By Jennifer Yousfi Managing Editor Investors who were disappointed by Tuesday's quarter-point rate reduction by U.S. Federal Reserve policymakers were energized yesterday (Wednesday) when the central bank announced a plan to inject $40 billion in liquidity into the short-term credit markets. The announcement – made before the opening bell on Wall Street – represents the […]