Bonds: • 30-Year Bond Rallies As Investors Rush To Higher Yield, Anticipate Fed Purchases Dec 18, 2008
25% the lowest ever the policy-setting Federal Open Market Committee said it was "evaluating the potential benefits of purchasing longer-term Treasury securities" to reduce lending rates and help homeowners and other borrowers. The two-year note traded down 5/32 in price for a 0. (Investors Business Daily)
The Fed fixes bayonets Dec 17, 2008
Following a two-day meeting the Fed s policy panel, the Federal Open Market Committee (FOMC), announced three big measures: it has cut its target for the federal-funds rate to between zero and 0. 25%, the lowest on record; it said that a weak economy would probably keep it there for some time ; and having exhausted its conventional monetary ammunition, it promised a range of unconventional strategies, primarily purchases of mortgage-related securities and possibly Treasuries to push down... (The Economist)
Fed cuts key interest rate to record low Dec 17, 2008
The Federal Open Market Committee voted to lower the federal funds rate, which is the interest rate banks charge each other, and said it would "employ all available tools to promote the resumption of sustainable economic growth.". The Fed said that since its last meeting in October, "labor market conditions have deteriorated, and the available data indicate that consumer spending, business investment and industrial production have declined. Financial markets remain quite strained and credit... (Dallas Business Journal, TX)
Dollar closes higher on US rate cut Dec 17, 2008
The US Federal Open Market Committee (FOMC) lowered the federal funds rate, the rate banks lend to each other, from 1% to what was described as a "target range'' of between 0 and 0.25%. At the close, the dollar was trading at 69.83 US cents, up from Tuesday's close of 66.98 cents. During the day, the local unit traded between a morning low of 69.07 US cents and a late afternoon high of 70.19 cents. The local currency last touched 70 US cents on October 20 this year. The US Federal Reserve's... (Sydney Morning Herald -- Business)
Asian shares mixed, awaiting US rate decision Dec 17, 2008
The US Federal Open Market Committee was expected to cut its base lending rate from the current level of 1. 0 percent when its two day meeting concludes later Tuesday, even if the move would be largely symbolic. (India Times)
Bernanke is keen to not repeat past errors Dec 17, 2008
That was clear to everyone yesterday, when the Federal Open Market Committee slashed the target for the federal funds rate to a range of 0 to 0. 25 per cent, down from 1 per cent, and vowed to employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability. (Globe and Mail -- Business)
Fed vows to pump life into the economy Dec 17, 2008
The Federal Open Market Committee action adjusted the target for the federal funds rate from 1 percent to between zero and. 25 percent, unusual in that the panel typically cites a specific percent and not a range. (Pittsburgh Post-Gazette, PA)
Consumer Prices Drop Biggest Since 1932 Dec 17, 2008
The policy-making Federal Open Market Committee is almost universally expected to cut its target for overnight interest rates to 0. 5% from 1. (SmartMoney)
Fed cuts interest rates to near zero to combat economic recession Dec 17, 2008
In a statement announcing its actions, the central bank's policymaking Federal Open Market Committee, which was unanimous in its decision, said the job market, business and consumer spending and manufacturing had all weakened since its Oct. 29 meeting, while inflation pressures "diminished appreciably. It promised to do whatever it takes to support the economy. Q&A: FED STATEMENT: STOCKS RISE: "The Federal Reserve will employ all available tools to promote the resumption of sustainable economic... (USA Today -- Money)
FED STATEMENT: Read what the FOMC said Dec 17, 2008
The Federal Open Market Committee decided today to establish a target range for the federal funds rate of 0 to 1/4. Since the Committee's last meeting, labor market conditions have deteriorated, and the available data indicate that consumer spending, business investment, and industrial production have declined. (USA Today -- Money)
Bonds: • Bonds Rocket After Fed Slashes Key Rate; 10-Year Yield Plunges To Five-Decade Low Dec 17, 2008
"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," said the policy-setting Federal Open Market Committee in its accompanying statement. As well as its previously announced measures to buy mortgage-related securities to support the housing market, "the Committee is also evaluating the... (Investors Business Daily)
FOXBusiness: Interest Rate Decision Explained Dec 16, 2008
With the slowing -- now officially recessionary -- economy eclipsing inflation as a threat, the Federal Open Market Committee is expected Tuesday to drop the target Federal Funds rate to 0 ... 1) The Federal Open Market Committee decided today to lower its target for the federal funds rate 50 basis points to 1 percent ... The Federal Open Market Committee decided today to keep its target for the federal funds rate at 2 percent. (Fox News)
Dollar firms ahead of expected US rate cut Dec 16, 2008
The US Federal Open Market Committee (FOMC) announces its decision on monetary policy on Wednesday at 6. 15am Sydney time. (Sydney Morning Herald -- Business)
Fed rate cut won't trickle to consumers Dec 16, 2008
When the Fed's rate-setting Federal Open Market Committee wraps up its two-day meeting, it's expected to make another half-point cut to the federal funds rate, an overnight rate that banks charge one another. That rate now stands at 1 percent, equaling the lowest it's been since the Fed began targeting this rate. (OregonLive, OR -- Business)
Gold dips on profit taking ahead of Fed meeting Dec 16, 2008
A decision by the Federal Open Market Committee to cut interest rates would augur well for gold. Spot gold eased to $833. (Globe and Mail -- Business)
Global stocks mixed ahead of US interest rate decision Dec 16, 2008
The US Federal Open Market Committee was meanwhile expected to cut its base lending rate from the current level of 1. 0 percent when its two day meeting concludes later Tuesday, even if the move would be largely symbolic. (Yahoo News -- Top Stories)
Fed's Words May Speak Louder Than Actions Now Dec 16, 2008
The Federal Open Market Committee meets today and tomorrow and will debate cutting interest rates yet again -- a given at this point, considering the dire condition of the U.S. economy. What the FOMC says in the statement it issues after the meeting will be paramount. (Bloomberg -- Columnists)
Tokyo stocks down 1.12% Dec 16, 2008
On the Tokyo market, investors remained cautious ahead of the announcement by the Fed's policy-setting Federal Open Market Committee about its decision on whether to cut its benchmark short-term target interest rate. Brokers believed many investors are fearful of the subsequent appreciation of the yen against the U.S. dollar if Fed decided a rate cut. (Xinhuanet, China)
DiGi, Tanjong higher in early trade Dec 16, 2008
The research house also said the US Federal Open Market Committee (FOMC) would release its outcome from the two-day meeting which would end tonight. It expected the FOMC to cut the federal funds rate further by 50 basis points to 0. (The Star Online, Malaysia -- Business)
Transportation, interest rates on tap this week Dec 15, 2008
The Federal Open Market Committee meets on interest rates. is expected to report fourth-quarter earnings of 58 cents a share, compared with 49 cents last year. (Boston Globe)
$A closes firmer on good equity markets Dec 15, 2008
The US Federal Open Market Committee (FOMC) starts its last meeting of the year in Washington on Monday night Australian time. Markets are forecasting the meeting will end with another cut in the federal funds rate, which is now at one per cent.. (Sydney Morning Herald)
Asian markets rebound, plantations up Dec 15, 2008
HwangDBS Vickers Research said the focus of the coming week would be the takeaways from the U.S. Federal Open Market Committee (FOMC) meeting scheduled on Monday and Tuesday. Whilst the policymakers will likely cut further the federal funds rate (by as much as 50 basis points to 0. (The Star Online, Malaysia -- Business)
FOXBusiness: Economic Data to Chew On in Week Ahead Dec 14, 2008
The two-day meeting of the Federal Open Market Committee beginning Monday will be the focus in the upcoming week. The FOMC will have a lot of economic news and data to chew on when it meets, most of it continuing to be negative, suggesting the committee will vote to drop the target Fed Funds rate below 1. (Fox News)
Money Managers Brace for Unorthodox Fed Dec 13, 2008
The Federal Open Market Committee is widely expected to cut benchmark U.S. interest rates by at least half a percentage point from the current 1 percent at next week's two-day policy meeting, pushing ever closer to the "zero bound.". The Fed has been cutting rates since September 2007 and is almost at the end of that road, fueling speculation about what other tools it will employ and how it will communicate its intentions to the market. (ABC News -- Wire)
Bernanke `War Powers' Undermine Fed Presidents, Risk Divide on Next Steps Dec 10, 2008
Bernanke must now try to bring the Federal Open Market Committee, which includes district presidents and Fed governors, along as he turns to more radical strategies, such as buying Treasuries to drive down long-term rates. A lack of consensus at next weeks FOMC meeting could result in muddled communication that confuses investors and undermines confidence. (Bloomberg)
Fed takes a $4.6 trillion gamble Dec 6, 2008
So far this year, the Fed has aggressively reduced its overnight lending rate target to only 1%, and it probably will trim it by another 50 basis points at a December 15-16 Federal Open Market Committee meeting. Balance sheet. (Sydney Morning Herald -- Business)
US deflation not 'serious' threat, says Fed official Dec 3, 2008
Plosser, a voting member of the rate-setting Federal Open Market Committee in 2008, is one of the Fed's staunchest inflation hawks and has dissented twice this year in favor of tighter policy. Reuters. (Sydney Morning Herald -- Business)
Plosser: Deflation Not a Serious Threat Dec 3, 2008
Plosser, a voting member of the central bank's Federal Open Market Committee in 2008, is one of the Fed's staunchest inflation hawks. 2008 Reuters. (Newsmax)
Geithner Leaves Fed's Rate Panel Dec 2, 2008
Mr. Geithner has handed over his responsibility as a member of the Federal Open Market Committee to Christine Cumming, the New York Fed's chief operating officer and alternate to the FOMC, according to the New York Fed. Timothy Geithner. (Wall Street Journal)
Fed Commercial Paper Holdings Rise to $295.1 Billion (Update2) Nov 30, 2008
The Federal Open Market Committee will cut its target rate for overnight loans between banks by at least another quarter point, to 0. 75 percent, when it meets next month, according to a majority of economists surveyed by Bloomberg News. (Bloomberg)
Obama names his US Treasury team Nov 25, 2008
Mr Geithner - who also serves as vice chairman of the interest rate-setting Federal Open Market Committee - was key to the bailouts of insurance giants AIG and Bear Stearns, and in the decision to let Lehman Brothers collapse. Obama's top strategist David Axelrod said Mr Geithner was "intimately involved with the situation now in his role as president of New York Fed. By temperament and experience, he's the right man to lead the Treasury now.". (BBC News -- Business)
Obama picks dynamic duo to rescue US Nov 24, 2008
He is vice chairman of the Federal Open Market Committee that convenes regularly to decide on interest rates. He votes at every FOMC meeting, unlike the presidents of the Fed's other 11 member banks. (Sydney Morning Herald -- Business)
Geithner's Treasury Nov 23, 2008
He's also the vice chairman and a permanent member of the Federal Open Market Committee, which sets monetary policy. Assuming he is confirmed--and Cabinet nominees almost never draw much static during the Senate confirmation process--Geithner will continue to work closely with Bernanke in crafting the government's response to the financial crisis. (Forbes -- Business)
Clinton is choice for State Dept. Nov 22, 2008
Among other things, the New York Fed president is the only permanent member of the Federal Open Market Committee, which sets interest rates, and he is responsible for implementing Fed monetary policy, Clayton-Matthews said. "The New York Fed is a special bank," he said. (Boston Globe)
Stocks soar on word of Obama's choice to lead Treasury Nov 22, 2008
"Geithner is a veteran of the Clinton administration's Treasury team. He served as a protege of both Robert Rubin and Larry Summers, two Clinton Treasury secretaries who also were rumored in the mix for Obama's pick.Since November 2003, Geithner has headed the powerful New York Fed, the bank in the Federal Reserve system that works most closely with Wall Street and global finance. That position also made him the vice chairman of the Fed's interest rate-setting Federal Open Market Committee,... (Anchorage Daily News)
Fed officials downplay deflation fears Nov 22, 2008
Plosser is a voting member of the Federal Open Market Committee in 2008. Evans and Lacker will vote in 2009. (Sydney Morning Herald -- Business)
'Safe pair of hands' Timothy Geithner tipped for US Treasury Nov 22, 2008
The 47-year-old - who also serves as vice chairman of the policy-making Federal Open Market Committee - was key to the bailouts of insurance giants AIG and Bear Stearns, and in the decision to let Lehman Brothers collapse. But he is also an old Treasury hand, having risen up the ranks of US government from 1988 to 2001 to the peak of undersecretary for international affairs. (The Australian)
Fed slashes US economic outlook Nov 20, 2008
The new projections buttress the statement released by the Federal Open Market Committee on October 29, which concluded that ``downside risks to growth remain ... The estimates, a median range of forecasts by Fed governors and regional-bank presidents, were presented at the Federal Open Market Committee's October 28-29 meeting in Washington. (Sydney Morning Herald -- Business)
Shares sink to lowest in four years Nov 20, 2008
In the US, minutes released by the Federal Open Market Committee suggested further cuts to official interest rates, which already stand at just 1. During October, US inflation crumpled a record 1. (Sydney Morning Herald -- Business)
Fed sees risk of US recession for 2009 Nov 20, 2008
Thursday, November 20, 2008. " onclick="Next();" src="/images/butt_next. (Channelnewsasia.com)
Equities Poised to Decline at the Open Nov 19, 2008
Still, taken with the afternoon release of the minutes from the last meeting of the Federal Open Market Committee, traders may buy or sell based on perceived changes to the prospect of another interest rate cut ... The minutes of the October 29 meeting of the Federal Open Market Committee are scheduled to be released Wednesday at 2 p.m. by the Federal Reserve. (SmartMoney)
Business briefing Nov 17, 2008
-- Federal Reserve's Federal Open Market Committee releases minutes of October meeting. -- Earnings reports expected from Gymboree, Intuit, Ross Stores. (San Francisco Chronicle -- Business)
Bernanke Says Central Bankers Ready for More Actions (Update2) Nov 16, 2008
The Federal Open Market Committee next meets Dec. 16. Bernanke's remarks make us think another coordinated rate cut cannot be ruled out,'' said , chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York. (Bloomberg)
Michael H. Moskow Elected to Taylor Capital Group Board Nov 11, 2008
In that capacity, he was a member of the Federal Open Market Committee, the Federal Reserve's most important monetary policy-making body. During the course of his public career, Mr. Moskow was confirmed by the United States Senate for five Federal government positions. (PR Newswire)
Dollar wobbles against euro on grim US jobs report Nov 8, 2008
"The FOMC (Federal Open Market Committee) members will undoubtedly be under pressure to cut again, even if that would be a meaningless gesture," he said. The jobs data underlined the challenge for President-elect Barack Obama, who met Friday with his economic team. (India Times)
Lockhart's complete speech Nov 8, 2008
I must emphasize that the views you ll hear are mine alone and not necessarily shared by my colleagues on the Federal Open Market Committee (FOMC). Status of the economy. (Atlanta Business Chronicle, GA)
Deflation Anxiety: The Rising Threat of Falling Prices Nov 7, 2008
Indeed, New York Federal Reserve governor and vice chairman of the Federal Open Market Committee Timothy Geithner was Treasury attach; in the Tokyo embassy for the first half of that decade. That's when a widespread banking crisis led to a credit crunch, an economic slump and eventually interest rates that were lowered to zero by the Bank of Japan. (Time.com)
Obama, McCain should have a stimulus policy ready to roll Nov 5, 2008
The Federal Open Market Committee should do so again at its October 28-29 meeting. Congressional leaders are also planning to have a lame duck session after the November 4 election, to consider enacting a fiscal stimulus package, expanding on the $168 billion measure passed in February that provided rebate checks to most taxpayers. (Business Report, South Africa)
THE WEEK AHEAD Nov 4, 2008
Dallas Fed president Richard Fisher will address the economic outlook on Tuesday, Federal Open Market Committee governor Kevin Warsh will speak on a topic to be arranged on Thursday and the week will conclude with a glimpse into the economic outlook by Atlanta Fed president Dennis Lockhart on Friday. Monday: throughout day Domestic vehicle sales (October) Consensus --, Merk--- , Prior. (Asia Times Online)
Former Fed Hawk Says Inflation Risk "Vaporized" Nov 4, 2008
Fisher said his growth forecast was "on the left hand" of the range of policy-makers, hinting he may be more bearish than other colleagues on the Federal Open Market Committee. Updated quarterly FOMC members' forecasts for growth, employment and inflation will be released on Nov 19. (ABC News -- Wire)
Irrational Anti-Exuberance Mires U.S. Lending Nov 4, 2008
Fisher who is currently a voting member of the Federal Open Market Committee, the panel that sets U.S. monetary policy, said the fear among potential lenders is blunting the effects of the Fed's recent interest-rate reductions, which are meant to goose the economy. Backing up Fisher's point of view was data from the Fed's monthly loan officer survey that showed banks are tightening their lending standards for businesses and consumers. (Forbes)
Full text of Fed statement Nov 2, 2008
The Federal Open Market Committee decided today to keep its target for the federal funds rate at 5-1/4. Economic growth was moderate during the first half of the year. (Yahoo News -- Federal Reserve)
Employment Report Promises to Disappoint Nov 1, 2008
Probably the most ominous -- and prescient -- were the comments in the Federal Open Market Committees announcement Wednesday of its decision to cut the target Fed Funds rate ... Below the radar, the income-spending report showed a third monthly increase in personal interest payments even though the Fed Funds rate had been unchanged at 2% since April (until the Federal Open Market Committee reduced the rate in two steps in October to 1%). (Fox News)
Week in Review: Oct. 27-31, 2008 Nov 1, 2008
All eyes were on the Federal Open Market Committee Meeting Wednesday. This is the meeting where the Fed sets the federal funds rate, which is the rates banks use to lend to each other. (Fox News)
Chicago Business Index Plunges to '01 Lows Nov 1, 2008
Citing a weakening economy, the Federal Open Market Committee reduced its target for the short-term federal-funds rate a half percentage point to 1% at Wednesday's rate-setting meeting. Futures traders have fully priced in another quarter percentage point ease to 0. (SmartMoney)
Fed Keeps Rate at 5.25%; Inflation Is Main Concern Oct 31, 2008
Although the downside risks to growth have increased somewhat, the committee's predominant policy concern remains the risk that inflation will fail to moderate as expected,'' the Federal Open Market Committee said today after meeting in Washington, where it left the benchmark rate at 5. 25 percent. (Yahoo News -- Federal Reserve)
Fed Makes Breathtaking Changes, Cuts Rates Too: John M. Berry Oct 31, 2008
To further its efforts, the Federal Open Market Committee yesterday, for the second time this month, cut its target for the overnight lending by a half-percentage point, to 1 percent. That matches the lowest level since the committee began using the rate as its benchmark two decades ago. (Bloomberg -- Columnists)
What the Fed's New Interest-Rate Cut Really Means Oct 31, 2008
The five interest-rate cuts in the first half of this year all came in the face of no votes, as a hawkish minority on the Federal Open Market Committee (FOMC) worried that Fed Chairman Ben Bernanke risked setting off an inflationary spiral. Now everyone at the Fed seems to have come around to that it's a deflationary spiral that we really need to be worried about. (Time.com)
Yellen: Economy Contracting Significantly Oct 31, 2008
"Rates in my view would be substantially higher absent the reduction in our base lending rate," said Yellen, who is not a voting member of the Federal Open Market Committee in 2008 but will vote in 2009. Yellen said "the bottom is not yet in sight" for falling house prices or housing starts. (Newsmax)
RAW DATA: FOMC Cuts Fed Funds Rate to 1.0%; More ... Oct 30, 2008
What Happened: The Federal Open Market Committee today agreed unanimously to cut the target Fed Funds rate at 1 ... 1) The Federal Open Market Committee decided today to lower its target for the federal funds rate 50 basis points to 1 percent ... The Federal Open Market Committee decided today to keep its target for the federal funds rate at 2 percent. (Fox News)
Text: FOMC Slashes Key Interest Rate to 1% Oct 30, 2008
The Federal Open Market Committee decided today to lower its target for the federal funds rate 50 basis points to 1. The pace of economic activity appears to have slowed markedly, owing importantly to a decline in consumer expenditures. (Fox News)
Fed slashes rate again, nearing uncharted waters Oct 30, 2008
The rate-setting Federal Open Market Committee knocked down the federal-funds rate the amount charged for overnight lending between banks to 1 percent. In a tandem move, commercial banks lowered the prime rate by a half point to 4 percent. (Anchorage Daily News)
Asian stock markets surge after Fed rate cut... Oct 30, 2008
"The pace of economic activity appears to have slowed markedly, owing importantly to a decline in consumer expenditures," said the Federal Open Market Committee headed by chairman Ben Bernanke after the unanimous decision. China on Wednesday chopped its benchmark one-year deposit rate by 27 basis points to 3. (The Drudge Report)
US Fed cuts key interest rate by 50 bps to 1% Oct 30, 2008
The Federal Open Market Committee, or FOMC, in its statement however, said that downside risks to growth remain. But it also believes that the recent actions should improve credit and growth. (Moneycontrol.com)
Dollar posts record 3-day gain Oct 30, 2008
Last night, the US Federal Open Market Committee (FOMC) cut its key federal funds rate by half a percentage point to 1% in a bid to stimulate the ailing American economy. It was last this low in June 2004. (Sydney Morning Herald -- Business)
