Time for Stimulus 2.0? The Debate Grows Louder

The recent litany of bad tidings has renewed the arguments about whether further government stimulus spending is necessary to reinvigorate the economy. And not surprisingly, economists are split in their answers.

Week in Preview: FOMC Meeting, Retail Earnings

At the upcoming Federal Open Markets Committee meeting, some quantitative easing may be on the table, given slowing economic. Plus, what to expect for the earnings of retailers like Nordstrom and Macy's.

Dueling With the Deflation Demon
at the Fed

The St. Louis Fed chief has written a document titled "Seven Faces of the Peril," in which he lays out two possible paths for the U.S. economy. One is that the country falls into a Japanese-style years-long rut of deflation.

The Fed Is Ready to Act if the Economy Slows

Federal Reserve Chairman Ben Bernanke wrapped up two days of testimony on Capitol Hill Thursday by reasserting the central bank's commitment to take further action if the the U.S. economy either slows substantially or grows too quickly, risking rising inflation.

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.

Bernanke Reviews Stimulus Exit Plans

Anyone hoping the Fed chairman would tip his hand on when the central bank might start tightening again was disappointed. But Bernanke did have news for investors, and that came in communicating the methods the Fed will likely use to tighten its monetary policy, including hiking rates paid to banks on reserves they keep at the Fed.

Mildly Optimistic Fed Stands Pat on Interest Rates

The Federal Reserve did what it was widely expected to do and stood pat on monetary policy Wednesday, keeping the target federal funds rate within a historically low 0% to 0.25% range, and repeating its pledge to keep it there for an extended period.

At the Fed, Heated Debate About Housing Support

Members of the Federal Open Market Committee are divided on whether or not the Fed should keep supporting the housing market by buying mortgage-backed securities after March 2010. And if the Fed pulls back, the consequences for the housing market could be severe.

Fed Minutes Reveal Stimulus Disagreement

Federal Reserve officials who gathered last month agreed the economy appears solidly on its way to recovery and gaining momentum, minutes from the meeting reveal. But records show some members disagreed over the need for continuing and future stimulus.

Status Quo Ahead for the Fed

With the unemployment rate at 10 percent and analysts predicting it will barely drop to 9.9 percent by the third quarter of 2010, Ben Bernanke would be committing political suicide if he raised rates now.

Should the Fed do nothing?

When I was growing up, my parents had a poster in our house with the words "Not to decide is to decide" in bold black letters. Though the quote from...