Articles Tagged with ''Federal Reserve''

Fed Cuts Funds Rate 50 Basis Points

In another attempt to shore up the economy, the Federal Reserve on Wednesday lowered the federal funds target rate -- the interest banks charge on overnight loans -- by 50 basis points to 1 percent. The decision to cut the rate came unanimously, as well, with former hawkish Dallas Fed president Richard Fisher continuing to support a strategy of rate cuts. The Fed also unanimously approved a measure to lower the discount rate 50 basis points to 1.25 percent, as well.
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Fed Makes Even More Moves in Effort to Stimulate Economy

The Federal Reserve announced Wednesday its plans to alter interest rates paid to depository institutions on excess balances. The new rate on excess balances will be 35 basis points below the lowest Federal Open Market Committee target rate; the excess balance rate spread has previously been fixed at 75 basis points. The change took effect Thursday, and means banks will receive higher interest rates on excess balances held at the Federal Reserve.
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Fed Acts, Dow Reacts

U.S. stocks opened on a higher note Tuesday in response to an announcement from the Federal Reserve that it would begin buying three-month unsecured and asset-backed commercial paper.
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Fed's Fisher: Credit Markets Have "STD"

In surprisingly blunt remarks delivered to a group of NYU students Thursday, Federal Reserve Bank of Dallas president Richard Fisher explained his recent less-hawkish stance on monetary policy, which saw him vote in line with Fed chief Ben Bernanke and other FOMC members in the most recent decision on rates. Prior to that, Fisher had been vocal in calling for hikes to the federal funds target rate.
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Fed Statement on Morgan Stanley, Goldman Sachs

Below is the full statement from the Federal Reserve on a historic change to the status of Goldman Sachs and Morgan Stanley: The Federal Reserve Board on Sunday approved, pending a statutory five-day antitrust waiting period, the applications of Goldman Sachs and Morgan Stanley to become bank holding companies.
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Treasury moves to fund Fed

Just a not-so-subtle reminder that even for the Fed, there are costs to be borne of building a bail-out nation: The Treasury Department announced Wednesday that it would provide cash to the Federal Reserve through a new auction program to fund the central bank's operations to provide liquidity to financial markets.
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Despite Uncertainty, Fed Leaves Key Rate Unchanged

In the midst of historic upheaval in the nation's financial markets, the Federal Reserve elected to leave a key rate unchanged, but left the door open for a future cut to the federal funds target rate before this year is out. Markets responded little to the Fed's announcement, focusing instead on the fate of troubled insurer American International Group, Inc. [stock AIG][/stock].
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Fed Expands Loan Facilities; Banks Establish $70 Billion Fund

Updating an earlier email subscriber exclusive sent out last Friday, ten banks said Monday that they've established a $70 billion borrowing facility to bolster liquidity among a battered financial market in the wake of the failure of Lehman Brothers Holdings Inc. [stock LEH][/stock] and the sale of Merrill Lynch & Co. [stock MER][/stock] to Bank of America Corp. [stock BAC][/stock].
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SEC, Fed Move to Bolster 'Fragile' Market

A financial sector that has been battered recently by credit and liquidity concerns saw its fortunes brighten at least temporarily on Wednesday morning. Moves by both the Securities and Exchange Commission and the Federal Reserve on Wednesday served as the latest attempt to prop up a broad financial system that's been searching for -- and, so far, not finding -- a bottom to an ongoing credit crunch.
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