Items Tagged with 'Inflation targeting'


  • 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.
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  • 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'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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  • Mortgage Rates Rise as Inflation Jitters Grow; Treasury Yields Jump Above 4 Percent

    Average mortgage rates rose to an eleven-week high, with rates on a traditional 30-year fixed-rate mortgage averaging 6.08 percent with 0.6 points for the week ended May 29, Freddie Mac [stock FRE][/stock] said Thursday morning, up from an average of 5.98 percent one week earlier. The 10 basis-point jump reflected investors' growing concern over inflation, as record oil prices continue to fuel expectations for a reversal in recent U.S. monetary policy.
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  • Fed Drops Key Rate to 2 Percent; Signals Likely Pause Ahead

    The Federal Reserve voted Wednesday, as expected, to cut the federal funds target rate 25 basis points to 2 percent; the cut was largely within investor expectations, leading Wall Street higher as the Dow Jones Industrial Average added slightly to earlier gains in Wednesday's trading session. The latest cut comes as rising concerns about inflation have many expecting a pause to future rate cuts; the Fed has cut rates seven times since last summer, by a total of three percentage points.
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