August Retail Sales Fail to Meet Forecasts

Good news is new reason for Fed to hold interest rates

(NEWSER) - Job growth in October was unexpectedly robust, with the addition of 166,000 jobs doubling projections and easing recession fears. Analysts had predicted an increase of only 85,000 jobs; one economist said the surprise figure “will increase the Fed's conviction that it should keep rates unchanged” for months to come, Bloomberg reports. The unemployment rate held steady at 4.7%. More»

Felix Salmon isn't thrilled with Fed chief's op-ed

(NEWSER) - The Fed's controversial plan to buy $600 billion worth of Treasuries to stimulate growth has brought the phrase "quantitative easing" out from the obscurity of financial blogs. Will it work? Two columns today on the subject from Ben Bernanke himself in the Washington Post and Felix Salmon at Reuters :

• Bernanke: The Fed chief offers three examples of how the move will help: It will lower mortgage rates and thus help prospective homebuyers or those who want to refinance; it will encourage business investment by lowering corporate bond rates; and it will raise stock prices, which will in turn boost consumer wealth, confidence, and spending "in a virtuous circle."

(NEWSER) - Stocks posted losses today, soured all session by worse-than-expected June employment data, the Wall Street Journal reports. With unemployment up a tenth of a percent to 9.5% and wages remaining stagnant, investors have little to be optimistic about. The Dow lost 223.32 to settle at 8,280.74. The Nadsaq dropped 49.20, hitting 1,796.52, and the S&P 500 fell 26.90 to close at 896.43. More»

With mortgage rates rising, homeowners regret not acting sooner

(NEWSER) - Many homeowners are kicking themselves for not refinancing sooner now that mortgage rates are climbing, ABC News reports. “I was going to save $325 a month, and that covers all kind of things, from gas to groceries,” lamented one. “$325 is a lot of money.” And it’s money, economists say, that could have been used to boost consumer spending. More»

Rate for 30-year mortgage again below 5%

(NEWSER) - Interest rates for fixed-rate mortgages decreased this week, with the rate for a 30-year mortgage falling 0.05% to an average 4.98%, near January’s record low of 4.96%, MarketWatch reports. Thirty- and 15-year mortgage rates are down nearly a full percentage point from a year ago. The fall in rates comes a day after the Fed announced it would buy Treasuries to depress lending costs. More»