The Federal Reserve does not believe any one hedge fund can topple the financial system and therefore the private pools of capital may escape direct supervision by the central bank, an industry source familiar with the Fed’s position said. Get the full story »
Inside these posts: Fed
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Fed seeks to cap debit-card fees at 12-cents a swipe
In a blow to the banking industry, U.S. Federal Reserve officials Thursday agreed to advance a proposal that would prevent banks from charging merchants “swipe fees” from debit cards that are higher than 12 cents per transaction.
“It’s going to be painful,” said Consumer Bankers Association President Richard Hunt. “If adopted, this will result in a significant reduction in revenue and efficiencies and have major negative implications for consumers.” Get the full story »
Fed: Foreign central banks’ U.S. debt holdings fall
Foreign central banks’ overall holdings of marketable securities at the Federal Reserve fell in the latest week, data from the U.S. central bank showed on Thursday. Get the full story »
U.S. household net worth rises in third quarter
U.S. household wealth rose by $1.2 trillion in the third quarter and household debt contracted at a slower rate than previously, according to Federal Reserve data on Thursday that showed slow repair to household finances in a weak recovery. Get the full story »
Flawed $100 bill causes billion-dollar headache
(Chip Somodevilla/Getty Images)
More than 1.1 billion new $100 bills have been put into quarantine while officials search for a solution to a printing problem that has rendered some of the bills unusable, an official familiar with the situation said Monday.
Originally scheduled for a February 2011 release date, the bills were the first run of a high-tech note designed to combat counterfeiting by including a 3-D security ribbon.
The Federal Reserve first acknowledged an issue with the bills in October, but did not specify the scope of the problem. Get the full story »
CBOT traders see no Fed rate hike until 2012
U.S. short-term interest rate futures traders boosted bets the Federal Reserve will wait until mid-2012 before raising rates, after a government report showed the U.S. jobless rate unexpectedly rose in November. Get the full story »
Chicago movers have stakes in Fed crisis programs
Chicago’s Arie and Ida Crown Memorial, the Crown Investment Fund, the Edgar D. Jannotta Jr. Revocable Trust and Allstate were among the “material investors” in various trusts and funds that borrowed under Federal Reserve programs aimed at easing the financial crisis, newly released records show.
The Term Asset-Backed Securities Loan Facility, or TALF, was set up by the Fed in November 2008 and began lending in March 2009. Get the full story »
Dec. 1, 2010 at 5:35 p.m.
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Filed under: Banking, Economy, Investigations, Policy, Politics, Real estate U.S. sees big costs for banks to fix foreclosures
U.S. banks will have to make “significant investments” to clean up foreclosure practices and some lenders potentially face strong pressure from investors to buy back faulty mortgages, a top Federal Reserve official said Wednesday. Get the full story »
Fed officials say U.S. must address budget issues
The European debt crisis should serve as a warning that the United States must address its long-term budget problems, U.S. Federal Reserve officials said on Wednesday. Get the full story »
Fed papers show breadth of emergency measures
The Federal Reserve on Wednesday released details on $3.3 trillion in emergency loans made during the financial meltdown that showed Citigroup and Bank of America leaning on overnight loans from the central bank well into the spring of 2009. Get the full story »
Nov. 23, 2010 at 2:00 p.m.
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Filed under: Fed lowers outlook for economy in 2011
Federal Reserve officials have become more pessimistic in their economic outlook through next year and have lowered their forecast for growth.
The economy will grow only 2.4 percent to 2.5 percent this year, Fed officials said Tuesday in an updated forecast. That’s down sharply from a previous projection of 3 percent to 3.5 percent
Bernanke briefs senators on bond buying
Federal Reserve Chairman Ben Bernanke was briefing members of the Senate Banking Committee late Wednesday morning on the central bank’s controversial bond-buying plan, congressional aides said.
The U.S. central bank’s early November decision to launch a second round of large-scale asset purchases has led to a political backlash from Republicans who argue it is setting the ground for inflation and debasing the dollar. Get the full story »
Evans, other Fed officials react to bonds criticism
Federal Reserve officials, taken aback by stinging criticism of their decision to print money and buy $600 billion in Treasury bonds, are counterpunching to defend themselves and, in some cases, to reinforce their commitment to the policy.
Charles Evans, president of the Federal Reserve Bank of Chicago and a strong supporter of the Fed’s easing policy, noted in an interview with The Wall Street Journal that the weak economy and low inflation warrants the Fed’s policy and that more such purchases might be needed in the months ahead if the economic outlook doesn’t turn.
“I would continue to want to apply accommodative monetary policy until I had some confidence that that situation was changing,” Evans said, noting that $600 billion is a “good place to start” the easing program. Get the full story »
Fed to buy $105B worth of bonds in first phase
The Federal Reserve says it will buy a total of $105 billion worth of government bonds starting later this week as it launches a new program to invigorate the economy. Get the full story »
Fed official raises doubts over new Fed program
Fed governor Kevin Warsh, right, with Fed Chairman Ben Bernanke on Aug. 27, 2010. Warsh expressed doubts on Monday about the Fed's $600 billion bond-buying plan. (AP Photo/Reed Saxon)
A Federal Reserve official with a close working relationship with Chairman Ben Bernanke is expressing skepticism over the Fed’s new $600 billion program to bolster the economy.
Kevin Warsh, a Fed governor, warns that there are “significant risks” associated with the Fed’s bond-buying program, including the potential for triggering inflation.
The Fed’s program, announced last week, is aimed getting Americans to spend more and invigorate the economy by making loans cheaper. But Warsh doubts the program will have “significant” or “durable benefits” for the economy. Despite his reservations, Warsh voted for the program. Get the full story »
