The Fed Has Decided to Do Nothing -- and That's a Good Thing
Here's a quick primer on the Fed, why you never want a central bank to have to do anything, and the reason why we all hang on Ben Bernanke's every word.
Federal Reserve Board
Fed Notes Better Economy, Takes No Policy Action
The Federal Reserve offered a more positive view of the economy after a burst of hiring since its last meeting. It held off taking further steps to boost the recovery and reiterated its plan to keep short-term interest rates near zero until at least late 2014. The Fed's statement issued after Tuesday's one-day meeting was more upbeat than the one it released in January.
All Areas of the Country Show Growth, Fed Reports
The U.S. economy started the year off well with busier factories, higher retail sales, more jobs and growth in home sales. The Federal Reserve said Wednesday that all 12 of its banking districts reported some level of growth in January and the first half of February. Manufacturing output rose in all districts. Auto manufacturing, steel makers and other metal producers all reported solid growth.
Fed Unlikely to Raise Rates Until at Least 2014
The Federal Reserve went further than ever Wednesday to assure consumers and businesses that they'll be able to borrow cheaply well into the future. The Fed pushed back the earliest date for any likely increase in its benchmark interest rate by at least a year and a half, until at least late 2014. It said record-low rates are still needed to help boost an improving but still sluggish economy.
Fed Takes No New Action at Final Meeting of 2011
The Federal Reserve says the economy has grown moderately as hiring and consumer spending have improved. As a result, it's holding off on any new steps to boost the economy. But Fed officials, noting that unemployment remains high and global economic growth has slowed, left open the possibility of taking new steps next year if the economy worsens.
New Mortgage Regulations Could Bruise Housing Market
New regulations limiting mortgage brokers' compensation go into effect on April 1. While they're meant to protect mortgage borrowers from unscrupulous brokers, they could have an adverse impact on the nation's struggling housing market.
Obama Resubmits Peter Diamond's Fed Nomination to the Senate
Obama nominated Diamond, an MIT economist, in April, but the nomination failed to carry over through the Senate's summer recess because of objections from at least one lawmaker.
Figuring Out the Fed: What Will Bernanke Do?
In his latest Capitol Hill testimony, the Fed chairman said the U.S. economic outlook is "unusually uncertain," and he was fairly opaque about his plans. But that doesn't mean he won't act. Here's a look at some likely options.
Fed Faces Big Dilemma Amid Weak Economy
When the Federal Reserve ends a two-day meeting today, most economists will be looking for hints about when interest rates may start to move higher. But the Fed may have a more serious problem: what to do about deflation when rates can't go any lower.
After 40 Years, Federal Reserve's Kohn to Retire
Donald Kohn, the second-highest ranking official at the Federal Reserve, announced Monday that he will retire when his term ends in late June. The move brings the number of vacancies on the central bank's seven-member board of governors to three.