The biggest rate drop in seven years sends homeowners to banks looking for deals
Bloomberg Nov 26, 08 8:30 AM CST
(Newser)
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The biggest one-day decline in mortgage rates in 7 years set off a frenzy of refinancing yesterday, as homeowners who'd been waiting for a bargain jumped into the market. The nearly one-point decline was prompted by the Fed's $600 billion commitment to buy mortgage-backed securities, reports Bloomberg. "It's the folks who have been sitting on the sideline,” said a Bank of America exec. “They're jumping in with this news."
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MARKET Open
Stocks climb as investors are cheered by Fed plan to help consumer credit
Wall Street Journal Nov 25, 08 9:13 AM CST
(Newser)
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Stocks continued to rise at the open this morning, with the Dow climbing more than 100 points and the S&P gaining 1.5%, as investors cheered the Treasury and Fed’s new program to boost consumer credit, the Wall Street Journal reports. The Nasdaq, however, was off slightly. The Dow has gained 10% during the past two sessions, its fastest 2-day climb since 1987.
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ANALYSIS
Fed chief's term is up in 2010, and with Summers in play, another is no certainty
Wall Street Journal Nov 24, 08 9:40 AM CST
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Economists give Federal Reserve Chairman Ben Bernanke a passing grade for his efforts to fight the nation’s financial crisis, but that doesn’t guarantee he’ll keep his job when his appointment expires in 2010, reports the Wall Street Journal . President-elect Barack Obama may have a Fed-chief-in-waiting in Lawrence Summers, the outspoken former Treasury secretary who will head his National Economic Council.
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New rule stops banks, credit card companies from processing bets
Wall Street Journal Nov 13, 08 2:08 AM CST
(Newser)
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The Treasury Department and Federal Reserve will effectively outlaw most forms of online gambling with new rules that bar banks and credit card companies from processing transactions related to internet betting. The banking and gaming industry and House Financial Services Chairman Barney Frank oppose the new rules, reports the Wall Street Journal. The regulations, issued yesterday, will give companies just over a year to fully comply.
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Credit card company can now accept deposits, access emergency Fed funds
MarketWatch Nov 11, 08 2:09 AM CST
(Newser)
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The Fed has given credit card giant American Express the all-clear to become a bank holding company in a bid to keep the financial crisis wolves from the door, Marketwatch reports. AmEx can now accept deposits and access the Fed's emergency lending facilities. The central bank waived the normal 30-day waiting period, citing the "unusual and exigent circumstances affecting the financial markets.”
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Money is in addition to $700B Wall St. bailout; collateral unclear, too
Bloomberg Nov 10, 08 12:54 PM CST
(Newser)
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The Federal Reserve has lent more than $2 trillion to financial institutions under programs without congressional oversight—and will not disclose to whom or under what terms, Bloomberg reports. The loans are separate from the $700 billion congressionally approved bailout package. Investors and citizens are concerned that the collateral given in these unregulated programs could be improperly valued.
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With Fed at 1% and European, Asian banks trimming, no-interest loans not far off, perhaps
Bloomberg Nov 7, 08 12:25 PM CST
(Newser)
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Interest rates around the world are falling, with no end in sight as central banks hack away at obstacles to lending and try to jump-start their economies, Bloomberg reports. With the US rate at 1%, the Bank of England yesterday cut its key figure to 3%, the lowest since 1955, and the European Central Bank cut its rate by half a point, to 3.25%.
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Nevertheless, US is 'navigating the mother of all financial storms'
Bloomberg Nov 4, 08 1:46 PM CST
(Newser)
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The credit crisis has had at least one unintended positive effect, stopping a growing threat of inflation, Bloomberg reports. Dallas Fed president Richard Fisher said “inflationary momentum froze in its tracks” as the credit market did the same, but otherwise had a poor view of the economy. “I don't see any economic growth in 2009,” he said. “None.”
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Analysts predict Japan-style cuts in interest rates
New York Times Oct 30, 08 9:45 AM CDT
(Newser)
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Yesterday Ben Bernanke cut the federal funds rate to an ectomorphic 1%—but the Fed might not be done yet. More and more analysts are predicting that the central bank will have to cut rates all the way to zero if it wants to get the economy moving again. But don't get too excited, writes the New York Times : A 0% funds rate would apply only to interbank lending, and wouldn't mean free money for consumers.
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MARKETS
Late rally evaporates after Fed confirms cut, but most of Tuesday's gains are preserved
MarketWatch Oct 29, 08 3:19 PM CDT
(Newser)
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Volatility ruled Wall Street today as investors waffled in their response to the expected Fed rate cut, MarketWatch reports. Though the session’s final hour saw the Dow rocket to a 250-point gain in light trading, that evaporated and the Dow closed down 74.16 at 8,990.96. The Nasdaq, however, finished up 7.74 at 1,657.21, while the S&P 500 lost 10.42 to close at 930.09.
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1% is lowest mark since 2004 as Bernanke tries to combat slowdown
Associated Press Oct 29, 08 1:29 PM CDT
(Newser)
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The Federal Reserve surprised no one today, cutting interest rates by half a point, to 1%—as investors widely predicted he would, AP reports. “The pace of economic activity appears to have slowed markedly, owing importantly to a decline in consumer expenditures,” the Fed said in a statement, with the financial crisis “likely to exert additional restraint on spending.”
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MARKET OPENING
But yesterday's gain hasn't evaporated yet
Wall Street Journal Oct 29, 08 8:55 AM CDT
(Newser)
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Stocks took a modest dip at the open today, as investors waited for a rate cut decision from the Federal Reserve. The Dow fell 53 points, while the S&P and Nasdaq crept down 0.9% and 1.1% respectively. Investors are expecting a half-point rate cut, bringing the fed funds rater down to 1%, and some believe an even bigger cut is coming, the Wall Street Journal reports.
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