Federal Reserve

 
Now, mortgage-backed securities
The Federal Reserve's ready to take the plunge into purchases of mortgage-backed securities, specifically those for fixed-rate mortgages guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae, by resorting to the creation of additional bank reserves.
 
Deflation on central bankers' radar screens
San Francisco Fed's Janet Yellen sounds the alarm that the prospect of steadily falling prices will be something that global central bankers have to come to grips with over the next several years.
• Consensus gels around implementing large-scale stimulus, but timing of U.S. recovery remains in doubt
 
Key rate cut to zero to 0.25% range
Fed's high command ready to pull out the stops
Central bank chief Ben Bernanke and fellow policy makers vow to use "all available tools" to promote growth, including purchasing agency debt and securities in large quantities. Discount rate's slashed to 0.5%.
 
Bernanke's blueprint for recovery
In plain English, the Fed lays out what investors and consumers can expect as far as interest rates go, not to mention other moves it won't hesitate to take aimed at getting economy back on track.
• Text of Federal Open Market Committee's policy statement
 
Highlights from the Federal Open Market Committee statement on Dec 16

• The Federal Open Market Committee decided today to establish a target range for the federal funds rate of 0 to 1/4 percent.

• The Federal Reserve will employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability.

• The focus of the Committee's policy going forward will be to support the functioning of financial markets and stimulate the economy through open market operations and other measures that sustain the size of the Federal Reserve's balance sheet at a high level.

• The Committee is also evaluating the potential benefits of purchasing longer-term Treasury securities.

 
Coast-to-coast slowdown seen, says Fed survey
Economy weakens across U.S.; bankruptcy is one growing service
Latest Beige Book survey paints a somber picture of the U.S. economy, with all the bank's 12 regions reporting slower conditions through the end of November.
 
Fed sets $800 billion plan to boost lending
Move aimed to lower borrowing costs for consumers, home buyers
 Fed takes new actions to ease borrowing costs for Americans, unveiling a plan to lend up to $200 billion to support the issuance of consumer debt like, and purchasing $600 billion in debt and mortgage-backed securities from mortgage giants Fannie Mae and Freddie Mac.
• Central bank officials brace for yearlong recession
 
financial rescue plan
U.S. begins to enact rescue plan
 The U.S. government begins to enact a bold $700 billion plan to rescue the struggling financial system and will relieve banks of bad assets and rein in abusive trading in a bid to resolve one of the worst market crises in recent history.
Economy at a glance
• Jobs: Payrolls plunge 533,000 in Nov.
• GDP: Slowdown deepens in Q3
• CPI: Prices fall record 1% in Oct.
 • PPI: Prices drop as gas prices plunge
• Productivity: Up 4.3% in second quarter
 
Fed nuts and bolts

FOMC voting members in 2008

  • Chairman Ben Bernanke
  • Vice Chairman Timothy Geithner, New York Fed
  • Richard Fisher, Dallas Fed
  • Gov. Donald Kohn
  • Gov. Randall Kroszner
  • Gov. Frederic Mishkin
  • Sandra Pianalto, Cleveland Fed
  • Charles Plosser, Philadelphia Fed
  • Gary Stern, Minneapolis Fed
  • Gov. Kevin Warsh

There are two vacancies on the Federal Reserve Board of Governors. Elizabeth Duke and Larry Klane have been nominated by the president, but have not been confirmed by the Senate.

FOMC 2008 statements/meeting dates

• Jan. 21 (unscheduled)
• Jan. 29-30
• March 18
• April 29-30
• June 24-25

• Aug. 5
• Sept. 16
• Oct. 28/29
• Dec. 16

 

 

Inflation, growth worries heat up
Federal Reserve policymakers are increasingly uncomfortable about the inflation outlook as downside risks to growth have also intensified, says Fed chief Ben Bernanke in his semi-annual report to lawmakers on the economy and monetary policy. 

capitol report
 A stronger Fed gains support on Capitol Hill
 The Fed gets a major player in its corner that raises the likelihood the central bank will amass new regulatory powers as influential lawmaker Rep. Barney Frank signals he's positively disposed to give the Fed new responsibility.

capitol report
 Roots of credit crisis
laid at Greenspan's door
 A long-time Fed observer accuses the central bank 
under Alan Greenspan's tenure of "regulatory foot-dragging" that has harmed the public and contributed to today's credit crisis.
• Greenspan: I just didn't get it
 
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