As I’ve been suggesting the past few weeks, the stock market is not out of the woods yet. Some investors find this perplexing. After all, economic growth is solid, inflation is tame, the Fed has cut the discount rate (and is likely to cut the Fed Funds rate on, or before, the Sept. 18 meeting) […]
Category
Federal Reserve System
Message to Bernanke: Don't Give in to Speculative Clamor
When Fed Chairman Ben S. Bernanke addresses the Kansas City Fed's annual economic symposium in Jackson Hole, Wyoming, today (Friday), he’ll have to acknowledge that the risks to U.S. economic growth have increased – especially with the disruption to the credit markets and the tightening of credit in many areas. But Bernanke will also likely […]
It's Not Just The Credit Market Weighing On Bernanke's Decision
By Mike Caggeso Staff Writer In spite of the market turmoil of recent weeks, global economist Jay Bryson has a message for investors and consumers alike. Calm down, folks: It’s not as bad as it seems. In fact, Bryson even says the odds of a full-blown recession are unlikely. With the strong recovery in stocks […]
Commercial Paper Continues Plunge, Pressures Mount on Fed to Cut Rates
From Staff Reports The level of outstanding commercial paper underwent its biggest weekly drop in at least seven years in the period that ended Wednesday, further evidence of how the credit crunch has shaken the financial markets. Commercial paper is a highly flexible, unsecured, short-term loan obligation with a maturity term that typically ranges between […]
The Fed Has Learned Balance, as it Aids Market Recovery
All things considered, U.S. central bank chief Ben S. Bernanke and the Federal Reserve have so far demonstrated a tremendous amount of restraint amid the credit crunch. Market volatility, tightening credit conditions, and the collapse of the subprime-mortgage-stuffed Bear Stearns Cos. (NYSE: BSC) hedge funds – as well as several mortgage lenders operating at the […]
Fed Cuts Discount Rate; Stocks Rebound
By Jason Simpkins The U.S. Federal Reserve cut the discount rate to 5.75% Friday, and in a statement indicated that it is "prepared to act as needed to mitigate the adverse effects on the economy arising from the disruptions in financial markets." The Fed kept the benchmark Federal Funds rate at 5.25%. Discount window borrowing, […]
Foreign Markets Thrive; U.S. Closes With A Thud
By Jason Simpkins Central banks continued funneling cash into the world’s wounded financial systems Monday, the latest in a series of liquidity infusions that began last week. The European Central Bank offered another $65 billion in emergency funds, while the Bank of Japan injected $5.1 billion. The Federal Reserve again came in on the low end […]
Will $275 Billion Central Bank Injection Be Enough?
By Keith Fitz-GeraldContributing Editor “Will it be enough?” That’s not a question. That’s the question. And it was being asked all around the world, in emergency sessions that started late last week and stretched into the weekend. It was being asked by central bankers in government offices, and by securities traders, hedge-fund managers and corporate […]
Fed Keeps Rates Steady, Market Continues to Fluctuate
By Jason Simpkins Although Federal Reserve policymakers failed to offer any signs of an interest-rate reduction at their meeting Tuesday, investors shrugged off their disappointment and enabled U.S. stocks to rebound from deep losses and finish well into positive territory. Stocks repeated that pattern yesterday (Wednesday), zig-zagging to a triple-digit close. During Tuesday's trading session, […]
Weak Jobs Report, More Credit Woes Sends Stocks Skidding
By Jason Simpkins U.S. stocks tumbled Friday – the Dow Jones Industrial Average recorded its third-worst day of the year – after an unexpected increase in the nation’s jobless rate and new revelations about the growing U.S. credit-market mess seemed to fuel concerns about the health of the country’s economy. The Dow plunged more than […]