Fed funds rate

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Bernanke: Fed Still Has Tricks Up Its Sleeves

... but it's not going to use them unless things get even worse

(Newser) - Ben Bernanke admitted that economic growth was “less vigorous than expected,” in his speech at Jackson Hole today, but said the Federal Reserve wasn’t going to act just yet. The Fed Funds Rate is near zero, but Bernanke said the central bank still had some “unconventional... More »

How Bankers Are Gaming the US to Get Richer Than God

They're getting taxpayer money on the cheap and loaning it back to us

(Newser) - There wasn't a single day last quarter in which Wall Street's big banks—Goldman Sachs, JP Morgan, Bank of America and Citigroup—lost money trading. How is that possible? Isn't trading supposed to be risky? Not when Uncle Sam is guaranteeing it isn't, explains a steamed Henry Blodget of Business... More »

Bernanke Reveals Plan to Tighten Credit

Federal Reserve will use new tool to boost interest it pays banks

(Newser) - Ben Bernanke has begun outlining the Fed's strategy for reeling in stimulus money once the economy has recovered further, telling the House Financial Services Committee today that the Reserve will likely increase the interest rate it pays banks that deposit money with it. That would encourage banks to leave more... More »

Fed Leaves Rate at Record Low

Says it wants to foster recovery

(Newser) - The Federal Reserve today held a key interest rate at a record low and again pledged to keep it there for an "extended period" to foster the fragile economic recovery. The Fed says economic activity has "continued to pick up" and that the housing market also has grown... More »

Fed Nearly Exhausts Options

With rates at 0%, politically unsavory buying program only tool left

(Newser) - The Fed is almost sure to leave the federal funds rate alone today, mostly because, at about 0%, it literally can’t go any lower. So with deflation still looming, what’s Ben Bernanke to do? One Goldman Sachs analyst says the Fed needs to shave the equivalent of 8... More »

Falling Interest Rates Whack Legal Aid Groups

Funds tied to Fed's benchmark rate

(Newser) - There’s been some collateral damage from the Federal Reserve’s slashing of interest rates: legal aid societies. These groups, which aim to help the poor in civil cases, such as unemployment or foreclosure disputes, have long relied on little-known programs to draw interest from short-term deposits from clients. With... More »

Fed Cuts Rate to 0%-0.25%

Target is record low as Reserve battles recession

(Newser) - The Federal Reserve today cut its target for a key interest rate to the lowest level on record and pledged to use "all available tools" to combat a severe financial crisis and prolonged recession. The central bank says it reduced the federal funds rate, the interest that banks charge... More »

Krugman: Throw Away Prudence to Fix Economy

Depression economics have taken hold

(Newser) - The financial world has been turned upside down, and while we may not be headed for another Great Depression, we are embroiled in “depression economics,” writes Paul Krugman of the New York Times, a time when normal economic tools like the Fed's rate-cutting powers have “lost all... More »

Stocks Jump on Rate-Cut Hope

Strong opening on global rallies

(Newser) - Stocks shot up at the bell this morning, powered by rallies overseas and speculation that another Fed rate cut is coming down the pike. The Dow rose 239, while the S&P and Nasdaq saw 2.9% and 3.3% jumps respectively. Hong Kong’s Hang Seng in particular saw... More »

Fed Holds Line on Interest Rates; Markets Bounce

Committee leaves rate at 2%, confounding investors' expectations

(Newser) - In its first unanimous interest rate decision in a year, the Federal Reserve voted today to leave its key interest rate unchanged at 2%. The decision reflects regulators' unwillingness to get even more involved in the developments roiling the financial markets, the Wall Street Journal reports. Stocks fell triple-digits on... More »

Fed Pumps Money Into Reeling Banks

It will loan billions more this month to ease credit crisis

(Newser) - The Federal Reserve will lend more money to banks in March in a bid to ease the worsening credit crisis, Bloomberg reports. By dramatically increasing the funds available in two upcoming auctions—from $30 billion to $50 billion—the Fed hopes to convince banks to loosen up and lend more. More »

Dollar Slides to Record Low; Oil Tops $102

Investors bet on Fed rate cut, driving euro up against US currency

(Newser) - The dollar declined against most major currencies and fell to its lowest level ever against the euro today as markets anticipated another rate cut from the Fed when it meets March 18, increasing the value of assets outside the US, Bloomberg reports. The dollar’s erosion pushed commodity prices up,... More »

GDP Grows at 3.9% Clip Despite Housing Crunch

GDP tops estimates on increased consumer spending

(Newser) - The US economy grew at a brisk 3.9% pace in the third quarter despite the credit and housing turmoil buffeting Wall Street, according to Commerce Department figures released today. Overall construction spending was up—with record commercial and government spending offsetting the housing slide—while individuals increased spending 3%... More »

Expected Fed Rate Cut Could Halt Crisis

Wall Street counting on help to boost falling stock prices

(Newser) - What happens next in the volatile world stock markets could depend on Federal Reserve chief Ben Bernanke. The Fed is expected to cut the interest rates banks charge each other for overnight loans, currently 5.25%. It would make loans cheaper, boost consumer spending, revive stock prices and ultimately, prevent... More »

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