The lackluster U.S. economic recovery has fueled an unusually public argument between two of the most prominent economists in the country: Nobel prize-winning New York Times columnist Paul Krugman has accused Fed Chairman Ben Bernanke of not doing enough to help spur the economy. Bernanke has responded by pointing out that the Fed has already acted aggressively through two rounds of monetary stimulus and, in any event, has a responsibility to help maintain “price stability,” something that could be jeopardized by raising the target inflation rate, which Krugman advocates. Academic jargon aside, the dispute underscores the mounting frustration among pundits and policy-makers alike, caused by slowing economic growth and continued high unemployment.
The disappointing economic growth figures released Friday by the federal government have raised the possibility that the U.S. recovery might be stalling — just when it appeared poised to achieve “escape velocity.
Are inflation hawks preparing to take flight? That’s the sense one gets reading comments made by two U.S. central bank officials Tuesday, including Dallas Fed President Richard Fisher, who said that corporate chiefs have been sounding the alarm about an increase in prices thanks to the Fed’s easy money policy.
In the third of four lectures to students at George Washington University, Federal Reserve Chairman Ben Bernanke said Tuesday that U.S. government intervention during the financial crisis prevented a “total meltdown” in the U.S. economy.
The U.S. economy needs to grow faster to maintain job market momentum, Federal Reserve Chairman Ben Bernanke said in a speech Monday; as a result, the Fed will continue its low-interest rate policy, hoping to spur consumer demand and business investment. Stocks rose on Bernanke’s comments, with some on Wall Street reading hints about a [...]
Financial documents released by the Federal Reserve on Tuesday showed that 2011 was the second-most-profitable year for the U.S. central banking system. Net income totaled $77.4 billion, down only slightly from $81.7 billion in 2010. That’s more than twice what the Fed was earning before the 2008-09 financial crisis. It’s also more than double the amount earned by Exxon, Microsoft or Apple. Where does all this money really come from, who ends up paying for it, and where does it go?
Since 2008, there have been plenty of calls to forcibly dismantle the “Too Big To Fail” (TBTF) Banks, but few of those calls have come from those in positions of real power. But the Dallas Federal Reserve Bank President, Richard Fisher, has been consistent and vocal in his belief that our economy will not reach its full potential until those bloated financial institutions are cut down to size.
The Federal Reserve turned a profit of $77.4 billion last year, driven by a dramatic increase in its balance sheet due to its policy of buying up securities to help stimulate economic growth.
The Federal Reserve announced late Tuesday the details of its latest “stress test” of major American financial institutions, and the markets greeted the results with qualified optimism. Nineteen banks submitted capital plans to the Federal Reserve, which then tested those plans against simulations of extremely adverse market conditions – what some consider to be an [...]
Sterilized bond buying could help lower interest rates and boost the economy a bit without adding to inflation, but don’t expect a major impact.
