U.S. Dollar Trades Near 8-Month Low on Fed Bets

The U.S. dollar traded near an eight-month low against the euro on bets that the Federal Reserve will signal it is willing to buy more government debt in order to stimulate the economy. The U.S. dollar traded at $1.3940 per euro as of 11:08 a.m. in London, Bloomberg News reported. It fell to $1.4012 earlier today and reached $1.4029 on Oct. 7, the weakest since Jan. 28.

Gold Prices Hit Record High Following Fed Meeting

Gold prices jumped to record highs Wednesday after the Federal Reserve signaled it is willing to boost its stimulus measures. The price of bullion reached a new record of $1,294.95 an ounce, before slipping to $1,293.10 an ounce, Reuters reported.

Federal Reserve: We're Ready to Aid the Economy

The U.S. Federal Reserve is keeping its existing, easy monetary policy unchanged, but in its policy statement issued today it added that 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 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.

Bernanke Faces Economic Dilemma in Jackson Hole Speech

Federal Reserve Chairman Ben Bernanke will address the Jackson Hole conference today, knowing that his words must reassure the public about the sluggish economy while also keeping the support of other policy makers. Bernanke needs "to give a sense of confidence there is someone with a steady hand on the tiller," Ethan Harris, an economist at Bank of America, told The Associated Press. "One decisive speech can quiet the noise."

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.

Fed Asks Court to Delay Release of Bank Bailout Documents

The Federal Reserve Board asked an appeal court to delay the court-ordered release of documents that would identify banks that might have failed without support from the U.S. government. The Fed asked the U.S. Court of Appeals in New York to delay the release while it consults with the Department of Justice about a possible appeal to the U.S. Supreme Court, Bloomberg News reported.

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. But while passions run high about what the Fed should do next, 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

The U.S. Senate Banking Committee voted in favor of the nominations of three candidates for the Federal Reserve Board. The committee voted 17-6 in favor of the nomination of San Francisco Fed President Janet Yellen for vice chairman, 16-7 in favor of Peter Diamond, an MIT economics professor, and 21-2 for Sarah Bloom Raskin, Maryland%u2019s commissioner of financial regulation. All the opposition votes came from Republican committee members, Bloomberg News reported.

Beige Book Report: Economy Has Slowed Down

The latest Beige Book report from the U.S. Federal Reserve 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, Fed Chairman Ben Bernanke said the U.S. economic outlook is "unusually uncertain," and was opaque about his plans. But don't confuse that with an unwillingness to act. Here's a look a what the Fed's likely options are:

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 seem to have spooked the markets, which dropped precipitously as he spoke before reversing course.

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 taking any further stimulus actions -- at least for now.

Forget Inflation: May Consumer Prices Dipped 0.2%

The CPI fell 0.2% in May -- its second straight monthly decline -- and prices are now up just 2% in the past 12 months. That level of inflation is just 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%u2019s 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 the slightest improvement.

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 at the Dallas Regional Chamber of Commerce, 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. The Fed chief also supported financial regulatory overhaul and warned the nation's unsustainable deficits threaten future financial stability and growth.

Bernanke Affirms Near-Zero Interest Rate Policy

Federal Reserve Chairman Ben Bernanke told lawmakers Thursday near-zero short-term interest rates are still required to bolster the nascent economic recovery and the central bank has other tools to reduce the threat of inflation when the time comes.