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Federal Reserve System

Fed's Kohn on the evolving financial system

In the speech 'The evolving nature of the financial system: Financial crises and the role of the central bank' given on 18 May Donald Kohn of the Federal Reserve said U.S. bank regulators are focused on encouraging market discipline, sound risk…

Fed's Bernanke on Basel II

In the speech 'Basel II: Its promise and its challenges' given on 18 May Ben Bernanke of the Federal Reserve said federal banking regulators will press ahead on a sweeping plan aimed at improving risk management for the country's largest and most…

Fed's Bernanke on hedge funds and systemic risk

In the speech 'Hedge funds and systemic risk' given on 16 May Ben Bernanke of the Federal Reserve said financial authorities must stay attuned to any potential risks posed by the growth of hedge funds, an investment domain of the wealthy that has become…

NY Fed's Geithner on financial stability

In the speech 'Implications of growth in credit derivatives for financial stability' given on 16 May Timothy Geithner of the Federal Reserve Bank of New York said banks and other financial players must be cautious in their use of credit derivatives.

Phil Fed's Survey of Professional Forecasters

The Federal Reserve Bank of Philadelphia published its Second Quarter 2006 Survey of Professional Forecasters on 15 May. Stronger growth in real GDP this year will come at the expense of weaker growth next year, according to 53 forecasters surveyed.

Fed's Bies on implementing Basel II

In the speech 'Implementing Basel II: Choices and challenges' given on 16 May Susan Schmidt Bies of the Federal Reserve said the Federal Reserve will conduct "ongoing, detailed" analyses to ensure new bank capital rules, when implemented, do not lead to…

Comment: Inflation expectations

Ever since Milton Friedman's famous analysis of the "leads and lags" between interest rate changes and price- and output movements in 1961, the need for "forward-looking" monetary policy has been universally accepted.

Fed's Kohn on investing in payment innovations

In the speech 'Investing in payment innovations: A Federal Reserve perspective' given on 11 May Donald Kohn of the Federal Reserve said changing electronic payment systems benefit both institutions and consumers, but also expose them to new risks,…

The little-noticed 'yet' in the Fed's statement

According to this article by John Berry, published Thursday 11 May, it was in the FOMC's statement explaining what may come next that "yet" appeared, signalling that after boosting the target at 16 consecutive meetings the committee probably will take a…

The origins of bubbles in laboratory asset markets

The authors of this Atlanta Fed Working Paper, published May 2006, conduct experiments that are designed to investigate individual probability judgment error and speculative behaviour. They find that both factors contribute to the creation of asset price…

Central bank intervention and ex rate volatility

The St Louis Fed Working Paper "Central bank intervention and exchange rate volatility, its continuous and jump components" analyses the relationship between interventions and volatility at daily and intra-daily frequencies for the two major exchange…

A hands-off central banker?

According to the Working Paper "A hands-off central banker? Marriner S. Eccles and the Federal Reserve Policy, 1934-1951" published April 2006, the Federal Reserve after 1935 acquired new instruments to command monetary policy, but it did not change its…

Kansas Fed's Payments system research briefing

The Kansas City Fed's Payments system research briefing for May 2006, examines the potential for fraud associated with various "traditional" payment methods and the protective measures that consumers should take when using them.

New York Fed's Foreign Exchange Operations Report

According to the Federal Reserve Bank of New York's Treasury and Federal Reserve Foreign Exchange Operations quarterly report for January-March 2006, published 4 May, the U.S. monetary authorities did not intervene in the foreign exchange markets during…

Chairman Bernanke's clarity issue

According to this article published Thursday 4 May, while Ben Bernanke is unlikely to make radical changes in the statement issued after the next FOMC meeting, Fed watchers say he could aid his cause by eventually disclosing the central bank's forecasts…

Fed's Bies on current bank capital and market risk

In the speech 'Supervisory perspective on current bank capital, market risk, and loan product issues' given on 4 May Susan Schmidt Bies of the Federal Reserve said top bank managers must be involved to make sure their institutions' exposure to risks is…

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