An Anxious Fed: Economy Needs More Time
The minutes of the FOMC's September meeting show more quantitative easing may be needed "before long," but the bankers delayed any moves while waiting for more data.
bernanke
Bernanke: U.S. Deficit Is Growing Economic Threat
The Federal Reserve chief warned Monday that the government must figure out how to shrink huge budget deficits, which now pose a "real and growing" threat to the U.S. economy.
Federal Reserve: We're Ready to Aid the Economy
The Fed is keeping its existing easy monetary policy unchanged. But, it's prepared to take additional action, if necessary, to stimulate the economy and combat falling prices.
Global Deal Reached on Bank Finance Reforms
The so-called Basel III reforms impose new rules for capital reserves that the world's banks would have to keep on hand as a cushion to avert future financial meltdowns. The G20 nations are expected to ratify the agreement at their meeting in November.
Fed Sees 'Widespread Signs of Deceleraton' in Economy
The Fed%u2019s latest Beige Book report provided more evidence of what other recent economic data had indicated: That the U.S. economy slowed over the summer, but it's still growing at a modest pace.
Fed Minutes Confirm Intense Debate Over Recovery
At its August meeting, the Fed agreed to maintain the current monetary policy, but the decision was hardly universal. Some members said the recovery was on track and expressed concern that the decision to reinvest Treasury proceeds would send the wrong signal.
Wall Street's Stance on the Economy: Could Be Worse
Stocks posted big gains Friday, with the Dow Jones Industrial Average rising 1.7%, after Federal Reserve Chairman Ben Bernanke assured the nation that the Fed is ready to step in.
Bernanke: The Fed Won't Let the Economy Falter
Speaking at the Federal Reserve's annual symposium in Wyoming, chairman Ben Bernanke said the U.S. central bank is prepared to undertake another round of extraordinary measures should the prognosis for the economy get worse.
Risky Business: No Easy Policy Options Left for the Fed
As he addresses the nation%u2019s weak economy, Fed Chairman Ben Bernanke doesn%u2019t just face the traditional risks of rising inflation or an economic stall, but a polarized, caustic political climate that will make creative solutions even harder to propose, let alone implement.
Despite Pressure, the Fed Is Low on Options
Home sales are way down, unemployment is still high, and investors are waiting for the Federal Reserve to take action. Passions run high about what the Fed should do next, but its ability to move the needle on GDP growth or unemployment may be more limited than most assume.
Fed Nominees Get Nod From Banking Committee
Federal Reserve board nominees Janet Yellen, Peter Diamond and Sarah Bloom Raskin received a thumbs up from the Senate Banking Committee Wednesday, putting full Senate approval one step closer. A final vote is expected in September.
Beige Book Report: Economy Has Slowed Down
The Federal Reserve's latest Beige Book data confirms what other recent economic reports have suggested: The U.S. economic recovery slowed somewhat in the second quarter, with some regions reporting stalled conditions.
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.
Leading Economic Index Dips Again as Recovery Ebbs
June%u2019s 0.2% dip in the Leading Economic Index provided more evidence that the U.S. economic recovery has slowed, and that the slowdown will continue into autumn -- something that will complicate policymakers' task of lowering the nation's high unemployment rate.
Fed: Outlook 'Unusually Uncertain'
In testimony on Capitol Hill, Fed Chairman Ben Bernanke said that the central bank is ready to act in an economy that is "unusually uncertain." Bernanke's comments spooked the markets, which dropped precipitously as he spoke.
Just Enough Inflation? Core CPI Up 0.2% in June
The Consumer Price Index fell 0.1% in June, but the core rate rose a higher-than-expected 0.2%, which suggests that the slowing U.S. economic recovery has lowered inflation. But it hasn't triggered deflation -- at least not yet.
The Fed Sees a Slower Economic Recovery
The minutes from its June meeting raise some warning flags about growth and unemployment. Still, the Fed's latest forecasts are just slightly more pessimistic, and it has ruled out any further stimulus actions -- at least for now.
Forget Inflation: May Consumer Prices Dipped 0.2%
After a second straight monthly decline, prices are up just 2% in the past 12 months. That's about as low as the Federal Reserve can tolerate before it starts to fear an even worse economic troublemaker: deflation.
Growth May Be Too Tepid to Spark a Full Recovery
Even though the overall economy continues to show strength, many economists believe the Fed's projection of 3.5% growth may not be enough to satisfy the financial markets' hopes for a faster, more far-reaching rebound from the Great Recession.
The Fed Sees Recovery Building -- Except in Jobs
The U.S. economy grew modestly in April and May, the Fed said in its latest Beige Book report, with auto demand displaying unexpected strength. The labor market, however, showed only slight improvement.
Bernanke: Unemployment to Stay High for 'Significant Period of Time'
Federal Reserve Chairman Ben Bernanke told lawmakers Wednesday that the economy continues to heal slowly but unemployment is expected to remain elevated for a "significant amount of time."
Fed More Optimistic on Economy
Federal Reserve officials have a slightly brighter view of the economy than they did at the start of the year. Fed officials said Wednesday in a new forecast that they think the economy can grow between 3.2 percent and 3.7 percent this year. That's an upward revision from a growth range of 2.8 percent to 3.5 percent in their January forecast.
Capitol Hill Revisits the Lehman Brothers Collapse
Timothy Geithner and Ben Bernanke told lawmakers on Tuesday that the Lehman bankrupcty is the best example of the need for the Obama administration's proposed financial regulatory reforms. Former CEO Dick Fuld defended the bank, claiming it was hit by a "perfect storm."
The Fed Remains on the Lookout for Deflation
Most investors know that large budget deficits can lead to an increase in inflation. However, given the current price trend, to remove fiscal, or monetary, stimulus now would be precisely the wrong policy to follow: deflation, not inflation, remains the bigger threat to the economy.
Bernanke on the Financial Crisis: Interventions Prevented Cataclysm
In a speech that received scant attention, Fed Chairman Ben Bernanke was unambiguous about the effect of central bank and government interventions during the financial crisis: Those actions prevented an economic meltdown that would have rivaled the Great Depression -- or been worse.
Bernanke Sees Modest Growth, Warns of Deficits
In a speech in Dallas, Federal Reserve Chairman Ben Bernanke said that weakness in the housing and job markets remain the biggest economic challenges facing the U.S. Even so, modest growth should cause unemployment to edge lower over the next year.