Federal funds rate stays at 2% as bank ends 10-month run of cuts
Associated Press Jun 25, 08 1:40 PM CDT
(AP)
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The Federal Reserve decided today leave a key interest rate unchanged, bringing an end to a string of consecutive rate cuts aimed at keeping the country out of a deep recession. The federal funds rate will remain at 2%—the first time in 10 months the Fed has failed to reduce interest rates at one of its regular meetings.
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Bernanke hopes the 2% interbank rate will help economy rebound
Reuters Jun 25, 08 6:17 AM CDT
(Newser)
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Despite fears that inflationary forces are revving, the Federal Reserve will probably hold the interbank federal funds rate at 2% today, hoping the bargain basement rate can help kick-start a stalled economy that’s been hamstrung by a tenacious housing slump and a credit crunch hangover, Reuters reports.
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MARKETS
Fed inaction spurs recovery from bad economic news
MarketWatch Jun 24, 08 3:46 PM CDT
(Newser)
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The markets seesawed throughout today's session, closing down slightly as a minor rally in financials offset bad economic news and warnings of a poor quarter for UPS, MarketWatch reports. The Dow fell 34.93 to 11,807.43, Nasdaq dropped 17.46 to 2,368.28, and the S&P 500 lost 3.71 to finish at 1,314.29.
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Tight credit, interest rate worries keep homebuyers on sidelines
Reuters Jun 23, 08 7:48 AM CDT
(Newser)
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Rising mortgage rates and a tenacious slump in sales and home values will continue to depress the worst housing market in decades, reports Reuters. Don't expect potential saviors—new home buyers—to make a dent any time soon, says a Harvard study. With mortgage rates at a 9-month high, credit tight, and foreclosures on the rise, they will likely wait until the market hits bottom, and it appears to have a ways to go.
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Treasury secretary says Fed role needs to be revised, upgraded to respond to risk
Washington Post Jun 19, 08 6:39 AM CDT
(Newser)
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Treasury Secretary Henry Paulson today will urge Congress to broaden the Federal Reserve’s oversight role on Wall Street, giving it the authority to demand data from financial institutions to help prevent incidents like the Bear Stearns collapse. Any major change in regulatory authority would have to be approved by Congress, reports the Washington Post .
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ANALYSIS
Fed chief sheds academic image with crisis management; some worry he went too far
New York Times May 28, 08 10:50 AM CDT
(Newser)
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Federal Reserve chief Ben Bernanke’s aggressive actions in March to douse the fire consuming financial markets won him fans on Wall Street and elsewhere, but created a cadre of critics who say the “Bernanke Doctrine” fuels inflation and hurts the dollar, the New York Times reports. “It has been a really head-spinning range of unprecedented and bold actions,” said one expert.
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MARKETS
Fed minutes confirm expectations of higer inflation, slower growth
Wall Street Journal May 21, 08 3:37 PM CDT
(Newser)
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Oil prices kept on pummeling the markets today, and minutes from the Fed's most recent meeting confirmed warnings of higher inflation and lower growth—signaling a pause in rate cuts. "The rise in energy products is going to be the knell for consumer spending," one analyst tells the Wall Street Journal . The Dow ended down 227.49 to 12,601.19, the Nasdaq fell 43.99 to 2,448.27, and the S&P dropped 22.69 to 1,390.71.
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Fed's actions key strong economic reports, signs of market recovery
Wall Street Journal May 14, 08 9:50 AM CDT
(Newser)
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A growing number of economists are saying, cautiously, that the US might have pulled back from the brink of recession, the Wall Street Journal reports. The experts credit swift action by the Federal Reserve to lower interest rates and save Bear Stearns in March, and even the ongoing distribution of fiscal-stimulus checks, as catalysts for the detour.
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Paulson says US emerging from storm
Wall Street Journal May 7, 08 2:45 AM CDT
(Newser)
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The US is emerging from the credit woes triggered by the turmoil over subprime mortgages—despite the continuing wave of foreclosures across the nation, according to Treasury Secretary Henry Paulson. Paulson, in the most positive comments yet from the White House on the nation's economic troubles, in part credited the federal bailout of Bear Stearns, reports the Wall Street Journal.
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He warns of cascading crisis
Los Angeles Times May 6, 08 2:35 AM CDT
(Newser)
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Federal Reserve Chairman Ben Bernanke yesterday called for government intervention to halt home foreclosures, warning that to do nothing could "destabilize communities, reduce property values of nearby homes, and lower tax revenues." Bernanke said in a speech in New York that a million Americans were already three months behind in mortgage payments at the beginning of this year, threatening dire consequences for the future of the economy, reports the Los Angeles Times .
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MARKETS
Cautious market not fully inspired by jobs, Fed action
MarketWatch May 2, 08 3:37 PM CDT
(Newser)
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The markets ended mixed today as a rally spurred by news of fewer April job losses than expected and the Fed's bank-liquidity expansion died down before the closing bell, MarketWatch reports. The Dow rose 48.20, closing at 13,058.20, and the S&P 500 gained 4.56 to end at 1,413.90. The Nasdaq fell 3.72, closing at 2,476.99.
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MARKETS
Fed's latest actions draw late but rave reviews
MarketWatch May 1, 08 3:24 PM CDT
(Newser)
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Stocks rallied today on strong performances by several big tech firms, MarketWatch reports. Investors also poured money into financials in anticipation of the dollar boost the Fed will cause by holding interest rates steady after yesterday’s cut. The Dow climbed 189.87 to at 13,010.00, the Nasdaq rose 67.91 to 2,480.71, and the S&P 500 jumped 23.72 to 2,480.71.
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