Articles by tag - federal reserve

Fed to Buy More Government Debt to Prop Economy - Mortgage Rates Likely to Fall Further
The Fed today released its FOMC statement, in which it painted a picture of an economy that is not growing as quickly as anticipated. While savers are suffering, mortgage borrowers have never seen rates so low.
Posted on August 10, 2010 by
Fed Keep Rates at 0% Offering No Hope for Savers
The Federal Reserve released its FOMC Statement today and there were no surprises. The Fed reiterated its support for "exceptionally low levels of the federal funds rate for an extended period." That means savers will continue to earn almost no rate of return on savings accounts and very little on longer-term certificates of deposit.
Posted on June 23, 2010 by
Fed Plans Interest Rate Hike For This Summer
The Fed's plotting rate hikes, but it's not that simple.
Posted on May 04, 2010 by
Federal Reserve Talks Interest Rate Hikes
It had to happen eventually, folks, but why now? An interest rate hike would help and hurt a lot of people.
Posted on April 08, 2010 by
Short Sellers are Not to Blame
Short selling (or selling stock now with the obligation to buy it back later) was widely blamed for the collapse and instability of financial markets during 2007 and 2008. The Lehman bankruptcy report would suggest otherwise.
Posted on March 17, 2010 by
FOMC Statement - Fed to Keep Rates Low for Extended Period, To End Mortgage SecurityPurchases
In today's FOMC statement, the Fed did not change language saying it would keep rates low for an extended period. It also confirmed that it has reached the end of its $1.25 billion purchase of mortgage backed securities.
Posted on March 16, 2010 by
Testing the Interest Rate Barrier
Every few months I draw the spotlight on long-term US interest rates as they approach a long held barrier. Thirty year treasury yields have not been above 4.8% since the fall of 2007 but have tested the 4.7% level about 10 times since then. I consistently draw attention to long-term interest rates because they are intimately tied to housing affordability and the cost of servicing debt. The Federal Reserve can keep short-term interest rates low for prolonged periods of time, but they can only keep longer term interest rates suppressed for finite periods of time. In an economy burdened with debt, the level of interest rates are critical.
Posted on March 10, 2010 by
Fed Balance Sheet Shows Growth in Mortgage Backed Securities
We've talked a lot about how the Fed's purchase of Mortgage Backed Securities has kept rates low. The chart below shows the Fed's balance sheet and how it has changes with the aggressive purchase of MBSs.
Posted on March 01, 2010 by
The Fed Raises the Discount Rate to 0.75% - Not a Sign of Tightening
The Fed today released a statement saying that it was raising the Discount Rate, the rate it charges banks for overnight loans, from .50% to 0.75%. This change was expected and the Fed was careful to point out that it still expects to keep the more influential Fed Funds rate low for some time.
Posted on February 18, 2010 by
Minutes of the Federal Open Market Committee Show Optimism on Economy and Minor Dissent on Inflation
The minutes from the Fed's January FOMC meeting show guarded optimism about the economy. But deeds say more than words, and in the end the Fed decided to stick with their statement that conditions
Posted on February 17, 2010 by
FOMC Statement - Winding Down Mortgage Purchase Program
The Federal Reserve released its Federal Open Market Committee statement today and the most noticeable aspect was confirmation that it is winding down its purchase of mortgage backed securities.
Posted on January 27, 2010 by
Bernanke Should be Re-Appointed
A vote on the future of the Federal Reserve chief is due to be held this week. It's unclear whether or not Ben Bernanke, the current Fed chairman, will be re-appointed. I think it would be a disaster if he wasn't given a second term.
Posted on January 25, 2010 by
Interest Rate Outlook
Where will interest rates go from here?
Posted on January 15, 2010 by
Where to Find Yield?
As long as inflation is kept under control (sub 5% annually) and China continues to somewhat peg their currency, then treasury rates can rise and these “yield hunters” will start buying treasuries instead of corporate bonds, preferred stocks, and equities which would keep the rise in long-term treasury rates at a stable growth rate.
Posted on January 17, 2010 by
Is the Fed to Blame for Asset Bubbles?
It's becoming clear that asset bubbles, not goods and services inflation has been the biggest bane of the economy over the last 20 years. The cycle of boom and bust seems to be becoming a fixture. This interesting article questions whether the Fed is behind this cycle.
Posted on December 04, 2009 by

Financial Video

Hard Ways to Earn Money: Babysitting Nightmare - Find out the easier way to save and earn more.
Posted on February 17,2012
Municipal Bond Market Review - Feb 2010 (Part I)
Posted on December 16,2010

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