The Federal Reserve’s new vice chairwoman warns that record-low interest rates may give companies an incentive to take excessive risks that could be bad for the economy. Get the full story »
Inside these posts: Federal Reserve Bank
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Fed hawks still skeptical about more easing
Two senior Federal Reserve officials raised concerns about further monetary easing on Thursday but only one — one of the Fed’s most consistent policy hawks — expressed firm opposition to a move.
Kansas City Federal Reserve Bank President Thomas Hoenig, who has dissented against the U.S. central bank’s extremely easy money policies at every meeting policy-setting meeting this year, was blunt in stating distaste for further Fed help. Get the full story »
Bernanke: Fed will act if economy falters
Federal Reserve Chairman Ben Bernanke said Friday that the Fed will consider making another large-scale purchase of securities if the slowing economy were to deteriorate significantly and signs of deflation were to flare.
Midwest manufacturing output rises in July
Midwest manufacturing output increased in July, according to the Federal Reserve Bank of Chicago, after revised data showed slight slippage in June. Get the full story »
Aug. 23, 2010 at 10:26 a.m.
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Filed under: Bank failures, Banking, Economy, Policy, Politics Fed’s Hoenig: ‘Too big to fail” hurts small banks
The viability of community banks is threatened by policies that have conferred “too big to fail” status on larger banks, reducing their cost of capital, Kansas City Federal Reserve Bank President Thomas Hoenig said on Monday.
Hoenig, in prepared testimony to a field hearing of the U.S. House of Representatives Subcommittee on Oversight and Investigations here, said the community bank model was still viable, especially if allowed to compete on an equal footing with larger banks. Get the full story »
Dollar jumps ahead of Fed meeting
The dollar jumped against major currencies Monday as markets expect the Federal Reserve to restart economic stimulus programs.
The central bank will likely leave its federal funds rate near zero at its meeting Tuesday, but could sound plans to resume purchasing mortgage-backed securities or buying Treasury bonds. The central bank’s programs ended earlier this year when it appeared the recovery was proceeding well. Get the full story »
San Fran Fed sees new likelihood of recession
There is a “significant” chance the U.S. economy will slip back into recession in the next two years though a reversal is unlikely in the next few months, researchers at the San Francisco Federal Reserve Bank said Monday.
The probability of another recession over the next 18 to 24 months is higher than that of expansion, researchers said in the latest issue of the regional Fed bank’s Economic Letter. Get the full story »
