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Vocapedia > Economy > Banks > USA > Federal Reserve / Fed

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

USA > Federal Reserve System / The Federal Reserve / The Fed      UK / USA

https://www.federalreserve.gov/  

 

The Federal Reserve,

through its power

to raise and lower interest rates,

exercises more influence

over economic growth

and the level of employment

than any other government entity.

 

That unusual role dates from the 1970s,

when the executive branch and Congress

pulled back from the use of fiscal tools

— vast New Deal spending

and targeted tax cuts —

as a means of regulating prosperity.

http://topics.nytimes.com/top/reference/timestopics/organizations/f/
federal_reserve_system/index.html

 

https://www.nytimes.com/topic/organization/federal-reserve-the-fed

 

 

https://www.npr.org/2018/08/01/
634423478/saying-economy-is-strong-fed-keeps-interest-rates-unchanged-for-now

 

https://www.npr.org/2018/01/31/
581649384/with-focus-on-unemployment-yellen-led-fed-through-tough-balancing-act

 

 

 

 

http://www.npr.org/sections/thetwo-way/2017/06/14/
532942522/fed-raises-key-interest-rate-for-the-fourth-time-since-2015

 

 

 

 

http://www.npr.org/2016/10/31/
500034877/why-the-fed-keeps-a-close-eye-on-consumer-prices

 

 

 

 

http://www.npr.org/2015/12/15/
459821692/these-seven-charts-can-help-you-see-what-the-fed-is-doing

 

http://www.nytimes.com/2015/03/13/
business/still-reading-the-feds-tea-leaves-word-by-word.html

 

 

 

 

http://economix.blogs.nytimes.com/2013/10/08/
what-the-fed-does-and-can-do/

 

http://www.nytimes.com/2013/09/19/
business/economy/fed-in-surprise-move-postpones-retreat-from-stimulus-campaign.html

 

http://www.nytimes.com/2013/01/19/
business/economy/fed-transcripts-open-a-window-on-2007-crisis.html

 

 

 

 

http://www.nytimes.com/2011/12/21/
business/fed-proposes-new-capital-rules-for-banks.html

http://www.nytimes.com/2011/12/02/
opinion/the-fed-and-the-euro.html

http://www.nytimes.com/roomfordebate/2011/11/30/
did-the-fed-go-far-enough

http://www.reuters.com/article/2011/11/02/
us-usa-fed-idUSTRE7A057A20111102

 

http://www.nytimes.com/2010/08/28/business/economy/28fed.html

http://www.nytimes.com/2010/02/25/business/economy/25fed.html

http://www.nytimes.com/2009/06/24/business/economy/24fed.html

http://www.nytimes.com/2009/03/11/business/economy/11fed.html

http://www.federalreserve.gov/newsevents/speech/bernanke20090310a.htm

http://www.reuters.com/article/idUSTRE4AO69T20081125

http://www.usatoday.com/money/economy/2008-11-25-fed-bailout_N.htm

http://www.usatoday.com/money/markets/2008-10-07-commercial-paper_N.htm

http://www.nytimes.com/2008/10/08/business/08fed.html

http://www.nytimes.com/2010/10/16/
business/economy/16fed.html

http://www.nytimes.com/reuters/2010/09/21/business/business-us-usa-fed.html

http://www.nytimes.com/2010/09/03/business/03commission.html

http://www.nytimes.com/2010/08/30/business/economy/30fed.html

http://www.nytimes.com/2010/08/28/business/economy/28fed.html

http://www.nytimes.com/2010/08/26/business/economy/26fed.html

 

http://www.nytimes.com/2008/12/17/business/economy/17fed.html

http://www.reuters.com/article/ousiv/idUSTRE4AO4QY20081125

http://www.nytimes.com/2008/10/30/business/economy/30fed.html

http://www.federalreserve.gov/newsevents/press/monetary/20080318a.htm

http://www.federalreserve.gov/newsevents/press/monetary/20080316a.htm

http://www.reuters.com/article/ousiv/idUSN1651144220080317

http://www.federalreserve.gov/newsevents/speech/bernanke20080314a.htm

http://www.reuters.com/article/ousiv/idUSN1155480820080311

http://www.reuters.com/article/topNews/
idUSN1155795620080311?virtualBrandChannel=10005

http://www.reuters.com/article/ousiv/idUSWAT00903420080304

http://www.federalreserve.gov/aboutthefed/default.htm

http://www.federalreserve.gov/newsevents/press/monetary/20080122b.htm

 

http://www.usatoday.com/money/economy/2007-11-08-bernanke-economy_N.htm

http://www.federalreserve.gov/newsevents/testimony/bernanke20071108a.htm

http://www.usatoday.com/money/economy/2007-09-18-fed-half-point_N.htm

http://news.bbc.co.uk/1/hi/business/6999821.stm

http://www.reuters.com/article/domesticNews/idUSWBT00846020080227

http://www.economist.com/daily/news/displaystory.cfm?story_id=9826026&top_story=1

http://www.usatoday.com/money/economy/2007-09-18-fed-half-point_N.htm

http://news.bbc.co.uk/1/hi/business/6999821.stm

 

http://www.usatoday.com/money/economy/fed/beigebook/2006-10-12-
moderate-growth_x.htm

 

 

 

 

 

What the Fed Does, and Can Do        USA        2013

 

The Federal Reserve

is a government agency

that regulates

the American financial system

and, by extension,

the broader economy.

 

Think of the financial system

as an engine.

 

The Fed controls the availability of fuel,

basically by manipulating the price,

and it dictates the permissible uses of fuel.

 

It does these things with two goals in mind:

preventing the economy from growing too quickly,

and preventing the economy from shrinking.

 

The fuel, of course, is money.

 

And the Fed manipulates the price of money

by raising and lowering interest rates.

 

When the Fed wants

to slow down economic activity,

it raises interest rates,

increasing the cost of borrowing money.

 

People and businesses

borrow less and spend less,

and growth slows down.

 

When the Fed wants

to stimulate the economy,

it lowers interest rates.

 

People borrow more,

spend more — you get the drift.

http://economix.blogs.nytimes.com/2013/10/08/
what-the-fed-does-and-can-do/

 

http://economix.blogs.nytimes.com/2013/10/08/
what-the-fed-does-and-can-do/

 

 

 

 

 

Federal Reserve policymakers

http://www.npr.org/sections/thetwo-way/2017/06/14/
532942522/fed-raises-key-interest-rate-for-the-fourth-time-since-2015

 

 

 

 

 

raise interest rates

http://www.npr.org/2017/03/15/
520223192/fed-to-announce-its-plans-for-interest-rates

 

 

 

 

 

raise interest rates by 0.25 percent

http://www.npr.org/2017/03/15/
520301610/federal-reserve-raises-interest-rates-by-0-25-percent

 

 

 

 

interest rates > climb

https://www.npr.org/sections/thetwo-way/2018/02/09/
584488276/u-s-stock-market-opens-higher-after-a-tumultuous-week

 

 

 

 

 

benchmark federal funds interest rate

benchmark interest rate

http://www.npr.org/2017/06/14/
532969122/federal-reserve-raises-benchmark-interest-rate

http://www.npr.org/sections/thetwo-way/2017/06/14/
532942522/fed-raises-key-interest-rate-for-the-fourth-time-since-2015

 

http://www.nytimes.com/2008/12/17/
business/economy/17fed.html

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal Reserve Chairman Ben Bernanke

during his Capitol Hill testimony Wednesday

before the Joint Economic Committee.

 

Bernanke Hints That The Economy Still Needs Help

NPR        May 22, 2013        11:20 AM

http://www.npr.org/blogs/thetwo-way/2013/05/22/
186015232/bernanke-hints-economy-still-needs-help-home-sales-rise

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Fed Chairman / Federal Reserve Board Chairman

Ben S. Bernanke, Federal Reserve chairman

https://www.nytimes.com/topic/person/ben-bernanke 

 

https://www.nytimes.com/2015/04/16/
business/ben-bernanke-will-work-with-citadel-a-hedge-fund-as-an-adviser.html 

 

http://www.nytimes.com/video/2013/09/18/us/politics/100000002451327/
bernanke-on-fed-stimulus-decision.html

 

http://www.nytimes.com/2012/09/04/
opinion/ben-bernankes-next-task.html

 

http://www.nytimes.com/2011/09/03/
business/vitriol-for-bernanke-despite-the-facts.html

http://www.guardian.co.uk/business/2011/apr/28/
ben-bernanke-deficit-not-sustainable

 

http://www.nytimes.com/2010/10/29/
business/economy/29fed.html

http://www.nytimes.com/2010/10/16/business/economy/16fed.html

http://www.nytimes.com/2010/09/03/business/03commission.html

http://www.nytimes.com/2010/08/30/business/economy/30fed.html

http://www.nytimes.com/2010/08/28/business/economy/28fed.html

http://www.nytimes.com/2010/08/26/business/economy/26fed.html

http://www.nytimes.com/2010/01/28/opinion/28blinder.html

 

http://www.nytimes.com/2009/12/04/business/economy/04fed.html

http://www.nytimes.com/2009/07/27/business/27bernanke.html

http://www.reuters.com/article/ousiv/idUSTRE49J51G20081020

http://www.reuters.com/article/ousiv/idUSTRE49J5EE20081020

http://video.on.nytimes.com/?fr_story=a9474c5bb692d2e1735e417491d3d7b9e5c6e8f9

http://www.reuters.com/article/topNews/idUSWAT00923320080402

http://www.federalreserve.gov/newsevents/speech/bernanke20080314a.htm

http://www.reuters.com/article/ousiv/idUSWAT00903420080304

http://www.reuters.com/article/domesticNews/idUSWBT00846020080227

https://www.federalreserve.gov/newsevents/testimony/bernanke20071108a.htm

 

 

 

 

Federal Reserve Chair > Janet Yellen    2014-2018

https://www.npr.org/2018/01/31/
581649384/with-focus-on-unemployment-yellen-led-fed-through-tough-balancing-act

 

 

 

 

Fed governor > Sherman Joseph Maisel        1918-2010

http://www.nytimes.com/2010/10/07/
business/07maisel.html

 

 

 

 

 

fed leaders

http://www.nytimes.com/2010/07/15/
business/economy/15econ.html

 

 

 

 

 

fed nominees

http://www.nytimes.com/2010/07/16/
business/economy/16fed.html

 

 

 

 

 

The Fed Chairman / Federal Reserve Board Chairman

Alan Greenspan        1987 to early 2006

https://www.nytimes.com/topic/person/alan-greenspan 

 

http://www.nytimes.com/2008/10/24/
business/economy/24panel.html

http://www.cagle.com/news/GreenspanGoof/main.asp

 

 

 

 

 

Fed > Monetary Policy Releases        2008

 

Statements

by the Federal Open Market Committee

and the Board of Governors

on the stance of monetary policy

and on related procedural matters

http://www.federalreserve.gov/newsevents/press/monetary/2008
monetary.htm

 

 

 

 

 

 

 

 

 

Fed Cuts Key Rate to a Record Low

 

December 17, 2008

The New York Times

By EDMUND L. ANDREWS
and JACKIE CALMES

 

WASHINGTON — The Federal Reserve entered a new era on Tuesday, lowering its benchmark interest rate virtually to zero and declaring that it would now fight the recession by pumping out vast amounts of money to businesses and consumers through an expanding array of new lending programs.

Going further than expected, the central bank cut its target for the overnight federal funds rate to a range of zero to 0.25 percent and brought the United States to the zero-rate policies that Japan used for years in its own fight against deflation.

Though important as a historic milestone, the move to an interest rate of zero from 1 percent is largely symbolic. The funds rate, which affects what banks charge for lending their reserves to each other, had already fallen to nearly zero in recent days because banks have been so reluctant to do business.

Of much greater practical importance, the Fed bluntly announced that it would print as much money as necessary to revive the frozen credit markets and fight what is shaping up as the nation’s worst economic downturn since World War II.

In effect, the Fed is stepping in as a substitute for banks and other lenders and acting more like a bank itself. “The Federal Reserve will employ all available tools to promote the resumption of sustainable economic growth,” it said. Those tools include buying “large quantities” of mortgage-related bonds, longer-term Treasury bonds, corporate debt and even consumer loans.

The move came as President-elect Barack Obama summoned his economic team to a four-hour meeting in Chicago to map out plans for an enormous economic stimulus measure that could cost anywhere from $600 billion to $1 trillion over the next two years.

The two huge economic stimulus programs, one from the Fed and one from the White House and Congress, set the stage for a powerful but potentially risky partnership between Mr. Obama and the Fed’s Republican chairman, Ben S. Bernanke.

“We are running out of the traditional ammunition that’s used in a recession, which is to lower interest rates,” Mr. Obama said at a news conference Tuesday. “It is critical that the other branches of government step up, and that’s why the economic recovery plan is so essential.”

Financial markets were electrified by the Fed action. The Dow Jones industrial average jumped 4.2 percent, or 359.61 points, to close at 8,924.14.

Investors rushed to buy long-term Treasury bonds. Yields on 10-year Treasuries, which have traditionally served as a guide for mortgage rates, plunged immediately after the announcement to 2.26 percent, their lowest level in decades, from 2.51 percent earlier in the day.

Yields on investment-grade corporate bonds edged down to 7.215 percent on Tuesday, from 7.355 on Monday. Yields on riskier high-yielding corporate bonds remained in the stratosphere at 22.493 percent, almost unchanged from 22.732 on Monday.

By contrast, the dollar dropped sharply against the euro and other major currencies for the second consecutive day — a sign that currency markets were nervous about a flood of newly printed dollars. Some analysts predict that the Treasury will have to sell $2 trillion worth of new securities over the next year to finance its existing budget deficit, a new stimulus program and to refinance about $600 billion worth of maturing government debt.

For the moment, Mr. Obama and Mr. Bernanke appear to be on the same page, though that could abruptly change if the economy starts to revive. Fed officials have already assumed that Congress will pass a major spending program to stimulate the economy, and they are counting on it to contribute to economic growth next year.

In more normal times, the Fed might easily start raising interest rates in reaction to a huge new spending program, out of concern about rising inflation.

But data on Tuesday provided new evidence that the biggest threat to prices right now was not inflation but deflation.

The federal government reported on Tuesday that the Consumer Price Index fell 1.7 percent in November, the steepest monthly drop since the government began tracking prices in 1947. The decline was largely driven by the recent plunge in energy prices, but even the so-called core inflation rate, which excludes the volatile food and energy sectors, was essentially zero.

Mr. Obama’s goal is to have a package ready when the new Congress convenes on Jan. 6. His hope is that the House and Senate, with their bigger Democratic majorities, can agree quickly on a plan for Mr. Obama to sign into law soon after he is sworn into office two weeks later.

The Fed, in a statement accompanying its rate decision, acknowledged that the recession was more severe than officials had thought at their last meeting in October.

“Over all, the outlook for economic activity has weakened further,” the central bank said.

“Labor market conditions have deteriorated, and the available data indicate that consumer spending, business investment and industrial production have declined.”

The central bank added: “The committee anticipates that weak economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time.”

With fewer than 10 days until Christmas, retailers from Saks Fifth Avenue to Wal-Mart have been slashing prices to draw in consumers, who have sharply reduced their spending over the last six months. On Tuesday, Banana Republic offered customers $50 off on any purchases that total $125. The clothing retailer DKNY offered customers $50 off any purchase totaling $250.

Ian Shepherdson, an analyst at High Frequency Economics, said falling energy prices were likely to bring the year-over-year rate of inflation to below zero in January.

The Fed has already announced or outlined a range of unorthodox new tools that it can use to keep stimulating the economy once the federal funds rate effectively reaches zero. On Tuesday, Fed officials said they stood ready to expand them or create new ones to relieve bottlenecks in the credit markets.

All of the tools involve borrowing by the Fed, which amounts to printing money in vast new quantities, a process the Fed has already started. Since September, the Fed’s balance sheet has ballooned from about $900 billion to more than $2 trillion as it has created money and lent it out. As soon as the Fed completes its plans to buy mortgage-backed debt and consumer debt, the balance sheet will be up to about $3 trillion.

“At some point, and without knowing the timing, the Fed is going to have to destroy all that money it is creating,” said Alan Blinder, a professor of economics at Princeton and a former vice chairman of the Federal Reserve.

“Right now, the crisis is created by the huge demand by banks for hoarding cash. The Fed is providing cash, and the banks want to hoard it. When things start returning to normal, the banks will want to start lending it out. If that much money is left in the monetary base, it would be extremely inflationary.”



Vikas Bajaj contributed reporting from New York.

Fed Cuts Key Rate to a Record Low,
NYT,
17.12.2008,
http://www.nytimes.com/2008/12/17/business/economy/17fed.html

 

 

 

 

 

 

 

 

 

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