Federal Reserve

Stock Market Today – Banks Behave Badly, U.S. Energy Boom

Top stock market news today, March 28, 2014: The Dow Jones Industrial Average fell 4.76 points to finish at 16,264.23. The Nasdaq dropped 22.35 points finish at 4,151.23, while the S&P 500 slid 3.52 to close at 1,849.04.

Meanwhile, gold prices fell $8.70 to close at $1,294.70 - below the $1,300 threshold for the first time in six weeks.

Friday's data will center on consumer income in February, an examination of February consumer spending, and a much anticipated look at March consumer sentiment.

Today's FOMC Meeting: Data-Dependent and Dovish

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The end of today's Federal Open Market Committee (FOMC) meeting included fresh dovish language in its policy statement - but the market-friendly attitude failed to excite investors who were hoping for more.

As widely expected, the U.S. Federal Reserve announced it will stay the course on its bond tapering. Anticipated - but not as expected - the policy statement shed some light on eventual interest rate hikes.

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The Five Most Ridiculous Revelations from the Fed Hearings

Glum Bernanke

On Friday, the U.S. Federal Reserve released the transcripts from its vital meetings over the state of the U.S. economy from 2007 through 2009.

The transcripts provide a staggering glimpse into the world of a central bank in crisis, or at least the inability for all parties concerned to grasp the problems at hand.

Here are the five most ridiculous takeaways from the Fed Reports.

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Janet Yellen Sticks to the Script (Here's What It Means for Investors)

Janet_Yellen_Headshot

Janet Yellen made her debut before Congress Tuesday as the new head of the Fed...

And just like they did for her predecessors, the markets hung on every single word.

Except in this case, nobody (and I mean nobody) expected any major fireworks. What they were looking for instead was a confirmation that it would be "business as usual."

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This Has Been Making Investors Rich for 140 Years

People are viewing the end of stimulus as a sunset. "My, what a wonderful day we've had," they say.

What they should be doing is investing for tomorrow's dawn - the turmoil we're seeing now as part of Yellen's arrival is actually par for the course.

It's also a great time to lock your sights on four companies that will lead the way when the smoke clears... Full Story

This Chart Will Save You from a Dangerously Popular Delusion

There's a very dangerous meme making the rounds.

It goes something like this:

The economy is improving, therefore the Fed's going to taper... and, when it does, the economy is strong enough to endure the withdrawals that will come with it.

Don't fall for it.

Nothing could be farther from the truth. Any amount of stimulus reduction will indeed trigger a "taper tantrum."

This chart is all the proof we need...

What a QE Taper Means for Markets and the Next Fed Chair

People Bernake praying

On Tuesday, Federal Reserve Bank of Chicago President Charles Evans announced that he wouldn't be surprised if the central bank begins to taper its $85 billion monthly bond-buying program in September.

Evans is the third official this week to signal a QE taper. Richard Fisher, president of the Dallas Fed, and Dennis Lockhart, president of the Atlanta Fed, parroted Evans' sentiment.

While Fisher indicated he would prefer to cut back bond purchases in August, Lockhart stated a preference for a September QE taper, although the Fed could wait longer if economic growth and unemployment trends reverse.

But it is Evans' announcement that is the most important. Evans is a member of the activist wing of the Federal Reserve. These members strongly support unconventional monetary policies such as bond buying, which are designed to reduce borrowing costs to spur aggregate demand and hiring across the country.

His views reflect those of the majority of members of the FOMC, the Fed's monetary policy committee.

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Exclusive: Obama Tells Money Morning Why He Just Loves Larry Summers…

Says Obama:
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:
Read on here...

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