Articles Tagged with ''Federal Reserve''

Repo Overhaul May Include Federal Clearing Bank

A plan said to be in the works at the Federal Reserve to bring sweeping changes to the broad repurchase markets may involve the formation of a federal clearing bank to take the place of banks like Bank of New York Mellon [stock BK][/stock] and JPMorgan Chase [stock JPM][/stock]. Repurchase markets -- or repo markets -- involve a borrower putting up collateral in return for short-term loans from large investment managers. The transactions literally occur overnight, meaning the lender repurchases the funds the next morning.
Read More

Fed Sees Slower Contraction

The pace of economic contraction slowed somewhat since March, the Federal Open Market Committee (FOMC) said after wrapping up a two-day meeting Wednesday. But the contraction continues, indicating the economy remains entrenched in the throes of recession.
Read More

Bernanke on Non-Banks: Passover to a New Rule Book

Significant non-banking financial institutions like American International Group Inc. [stock AIG][/stock] are an integral part of the U.S. economy and so interconnected with other institutions that outright failure is not an option, Federal Reserve chairman Ben Bernanke said in a speech today. Instead, he said, such firms ought to face a strict set of regulatory requirements -- and potential regulatory intervention -- similar to that imposed on banks by the Federal Deposit Insurance Corp.
Read More

Fed Pledges Another $1.2T to Support Housing Market

The Federal Open Market Committee released an official statement Wednesday acknowledging "the economy continues to contract" since its last meeting in January. The FOMC agreed -- unsurprisingly -- to maintain the target range for the federal funds rate to zero to 0.25 percent. The surprise came when the FOMC announced it would fund an additional $1.2 trillion to credit-unlocking efforts.
Read More

Bernanke's Attempt to Get Ahead of the Market

There are some things you expect from the chairman of the Federal Reserve: obtuse and circular references to "downside risk," speeches that only an academic could love, and an obsession from the business press to any references that might hint at future monetary policy direction. But there are also those things you do not expect -- such as a Fed chairman breaking the long-standing 'blackout' practice, where members of the Federal Open Markets Committee do not comment to the press ahead of an upcoming FOMC meeting.
Read More

Fed's Short-Term Economic Outlook Darkens

An overwhelming majority -- 10 of 12 -- of the Federal Reserve district reports indicated weakened conditions and declines in economic activity from January through late February, the Fed said Wednesday in the Beige Book, a regular publication released eight times per year.
Read More

FOMC's Housing Outlook Remains Weak

Regulators' outlook on the economy and the housing market recovery is bleak across the board, according to statements released Wednesday. The Federal Open Market Committee saw "that credit markets still were not working well," according to the quarterly Summary of Economic Projections along that was released Wednesday along with the minutes from the Jan. 27 through 28 meeting and Jan. 16 conference call.
Read More