bernanke

Bernanke Defends Fed's Low-Interest-Rate Policies

Facing criticism from Republican lawmakers, Chairman Ben Bernanke stood behind the Federal Reserve's low-interest-rate policies Wednesday and sought to reassure Congress that the central bank has a handle on the risks. Bond purchases are needed to help boost a still-weak economy, Bernanke said.

Bernanke Signals Continued Fed Support for Low Interest Rates

The Federal Reserve's low interest-rate policies are giving key support to an economy still burdened by high unemployment, Chairman Ben Bernanke told Congress on Tuesday. Bernanke signaled that the Fed's efforts to keep borrowing costs low -- buying treasuries and mortgage bonds -- will continue.

Global Markets Rise on Investor Confidence

The new year rally in global markets showed few signs of abating Monday ahead of a speech on monetary policy from Federal Reserve chairman Ben Bernanke. A number of stock indexes around the world have hit multi-year highs as a key measure of volatility, the so-called VIX index, has fallen to a five-year low.

Bernanke Says Fiscal Cliff Already Hurting Economy

The U.S. economy is already being hurt by the "fiscal cliff" standoff in Washington, Federal Reserve Chairman Ben Bernanke said Wednesday. But Bernanke said the Fed believes the crisis will be resolved without significant long-term damage.

5 Ways QE3 Will Affect Your Wallet

Quantitative easing is when the Fed buys securities in the hope of driving down interest rates -- ideally spurring more borrowing and spending. And this time, the Fed says it'll do it until the economy is back on track. But there are side effects to Dr. Bernanke's medicine.

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.

Why Is the Fed Letting Big Banks Boost Dividends?

The Fed's decision to allow big banks to pay sharply higher dividends makes no sense, and not just because the results of the so-called "stress tests" are secret. Based on facts that are public knowledge, the banks are actually insolvent, and in danger of sinking much further.

Can the Fed Keep Downplaying Inflation?

When a Federal Reserve committee meets Tuesday to consider the federal interest rate, it will likely revise its glum outlook into something brighter. But will it also acknowledge the U.S.'s growing inflation problem?

Soaring Oil Sends Stocks Sliding and Gold to a Record

The first trading day of the month is usually good to equities, but after a two-day respite, stocks went back back to suffering broad-based declines. The sharp rise in oil prices overshadowed some encouraging corporate and economic news.

This Week's Market:
'Time to Be a Little Careful'

The market suffered its biggest swoon since August last week as chaos swept Libya and oil prices hit multiyear highs. With the geopolitical landscape uncertain for the foreseeable future, don't be surprised if stocks come under further selling pressure in the days ahead.

Why a Little Inflation Is a Good Thing for Americans

Inflation has inched higher in the past six months, but that's not a danger sign, but rather a harbinger of improving economic conditions and a strengthening recovery. And that, in turn, should lead to higher wages and more hiring in the year ahead.

Why Global Food Price Inflation Really Matters

Fed Chairman Ben Bernanke insists that inflation remains "quite low." That's true, unless you need to eat. Core inflation doesn't take food prices into account, but those critical food prices are soaring around the globe. In fact, the U.N.'s Food and Agriculture Organization says its closely watched food price index hit its highest level ever in January.

Citing 'Insufficient' Growth, Fed Keeps Policy Steady

The Federal Reserve Tuesday kept its current accommodative monetary policy going steadily and continued its program of quantitative easing, saying that the economic recovery is continuing, but the growth rate "has been insufficient to bring down unemployment."

The Fed Sees a Slower Recovery and Jobs Rebound

In its latest meeting minutes, the Fed said it now expects the U.S. economy to grow more slowly in both 2010 and 2011, with as many as six years needed to return unemployment to normal levels of 5% to 6%.

U.S. Growth to Lag Behind Developing World in 2011

The world economy is poised for more of the same in 2011 -- booming growth in China, India and Brazil, and a sluggish crawl in the U.S. and much of the rest of the developed world. Here are the five most important factors driving expectations for sluggish economic growth in the U.S.:

Palin Says Bernanke Should 'Cease and Desist'

Sarah Palin, former governor of Alaska, commented on the Federal Reserve%u2019s plan to buy $600 billion of long-term assets, saying that Fed Chairman Ben Bernanke should "cease and desist." "We shouldn't be playing around with inflation," Palin said in remarks prepared for a Monday speech in Phoenix, according to Reuters.

Goldman Sachs Defends Bernanke's Plan to Buy Assets

Goldman Sachs (GS) economists defended Federal Reserve Chairman Ben Bernanke%u2019s decision to pump billions of dollars into the economy, saying the move will boost economic growth. The Fed%u2019s plan to buy $600 billion of assets will improve growth and reduce the risk of deflation, economist Jan Hatzius wrote in an e-mail to clients, Bloomberg News said.

With All Eyes on Election, Stocks Barely Budge

Stocks closed essentially unchanged Friday as mixed economic news and earnings data failed to distract traders from next week's mid-term elections and Federal Reserve policy statement.

The Fed: Economy Grew at a 'Modest Pace' in September

The Fed's latest Beige Book report confirms what earlier economic data has indicated. Eight of the 12 regional Fed banks, including San Francisco and Chicago, reported some form of growth in the September/October period. But nothing to write home about.

Stocks Close Mixed on Earnings and Economy

Stocks closed mixed Friday as Google's strong quarterly earnings lifted technology stocks but mounting concern over the foreclosure crisis and a revenue miss from General Electric weighed on financials and the broader market.

Dollar Falls to 15-Year Low Against Yen

The dollar fell to a 15-year low against the yen and the weakest since January against the euro on speculation that the Federal Reserve will ease monetary policy. The dollar slipped 0.8% to 81.13 yen at 6:37am in New York, from 81.81 yen on Wednesday. Earlier, it fell to 80.89 yen, the weakest since 1995. The dollar fell to as low as $1.4122 against the euro, the weakest since Jan. 26.

An Anxious Fed: Economy Needs More Time

The minutes of the Fed Open Market Committee's Sept. 20-21 meeting show a second round of quantitative easing may be needed "before long," but the bankers delayed any moves to collect more data and figure how to best to communicate the policy.