Federal Reserve System
Fed governor Bernanke repeats confidence on prices
Much recent press comment has focussed on whether the US economy could be set for a period of deflation. In a speech made Thursday Ben Bernanke said he was confident that the Federal Reserve still had the fire power left, even if interest rates fell…
William Poole - From Professor to Policymaker
SPEECH - In the speech 'From Professor to Policymaker: Emerging from the Shadow' William Poole of the Federal Reserve Bank of St. Louis said his years of teaching and writing as a university professor have helped him to develop effective communication…
US Economists' group criticises Fed rate cut
The Federal Reserves recent aggressive rate cut of half a point surprised most. It did nothing to improve sentiment in the markets with the dollar falling on the news as the US economy appeared to be in worse shape than was thought. Now the Shadow Open…
Greenspan on Int'l Financial Risk Management
SPEECH - In the speech 'International Financial Risk Management' Alan Greenspan of the Federal Reserve said episodes such as September 11 indicate that the ability of economies to absorb unexpected shocks has increased over the past two decades. He also…
Chicago Fed Letter, December 2002 Special Issue
REPORT - The latest Chicago Fed Letter is titled 'Financial market and regulatory behaviour over the business cycle'. It asks the questions, should regulation and supervision be used to smooth out the business cycle? and how do financial firms respond to…
Greenspan speaks at book launch
SPEECH - Fed Chairman Alan Greenspan spoke at the launch of a new book by Allan Meltzer. He described the book, History of the Federal Reserve Volume I as an indispensable input for monetary economists and economic historians alike. Drafts of the book…
Edward George on price/earnings ratios
SPEECH - Sir Edward George of the Bank of England told the Association of Corporate Treasurers last week that on some measures price/earnings ratos were back to the long-term averages. Is he saying the equity bubble is over, at least in the UK?
Greenspan on the economic outlook
SPEECH - In testimony titled 'The economic outlook' made on 13 November, Alan Greenspan of the Federal Reserve said before Congress's Joint Economic Committee, that last week's sharp interest rate cut should help the country through its "soft patch,"…
San Francisco Fed chief expects recovery next year
US - Following the Federal Reserve's half point interest rate cut last week Robert Parry said in a speech on Wednesday that the Fed thought it was wise to "take out a little insurance" to keep the expansion going.
Greenspan on The Wealth of Nations Revisited
SPEECH - In the speech 'The Wealth of Nations Revisited' made on 12 November, Alan Greenspan of the Federal Reserve said Adam Smith's idea of the 'invisible hand' whereby economic decisions that benefit an individual benefit society as a whole indirectly…
Greenspan's fight
ARTICLE - Last week, the Federal Reserve decided to blow, once again, into the flapping sails of the US economy. The puncturing of the bubble economy continues to create fierce headwinds. Further interest rate cuts - perhaps more unorthodox measures -…
Greenspan: Economy has hit 'soft patch'
US - Federal Reserve Chairman Alan Greenspan said on Wednesday the U.S. economy was weighed down by worry over possible war and falling stock prices but not by dangerous imbalances that tended to herald recession.
Gramlich on smart growth, at the Cleveland Fed
SPEECH - In a speech to the Cleveland Fed Conference made on 7 November, Edward Gramlich of the Federal Reserve said the fundamental principle of smart growth is that development should be of a holistic nature. That is, rather than just paying attention…
Bies on effective accounting and disclosure
SPEECH - In the speech 'Effective Accounting and Disclosure for Financial Transactions and Financial Institutions' made on 7 November, Susan Bies of the Federal Reserve said a restoration of public confidence in the U.S. capital markets has begun, but…
Ferguson on recent experience and economic outlook
SPEECH - In the speech 'Recent Experience and Economic Outlook' made on 12 November, Roger Ferguson of the Federal Reserve said the most recent recession was relatively mild and the current recovery has proved to be fairly weak compared with previous…
FRBSF Economic Letter - Stock Market Volatility
RESEARCH - In this Economic Letter from the Federal Reserve Bank of San Francisco the author surveys the academic literature on the properties and causes of stock market volatility, focusing on the debate on whether the stock market varies excessively,…
A new policy divide across the Atlantic
ARTICLE - Their analysis was so similar: the US Federal Reserve said on Tuesday that "inflation and inflationary expectations remain well contained"; Wim Duisenberg, the European Central Bank's president, concurred yesterday when he talked about "reduced…
Bernanke - Milton Friedman's Ninetieth Birthday
SPEECH - In the speech 'On Milton Friedman's Ninetieth Birthday' made on 8 November, Ben Bernanke of the Federal Reserve said to the assembled guests including Milton Friedman that the Federal Reserve takes responsibility for the Great Depression, "You…
Minutes of the Federal Open Market Committee
MINUTES - The Federal Reserve on 7 November released the minutes of its FOMC meeting of 24 September. Gramlich and McTeer dissented from the vote to hold rates constant, preferring to ease monetary policy at this meeting. The Committee believed that the…
Poole on the Fed's Role in Community Development
SPEECH - In the speech 'The Fed's Role in Community Development' made on 23 October, William Poole of the Federal Reserve Bank of St. Louis said in March 2003, the Federal Reserve System's Community Affairs offices will sponsor its third academic…
Bies-Fed monitoring commercial real estate, credit
US - The U.S. Federal Reserve is monitoring rapidly growing vacancy rates in commercial real estate and a surge in consumer credit, Fed Gov. Susan Bies said on Thursday.
Central bankers do it their way
ARTICLE - It is as well that central bank actions are not co-ordinated. The US Federal Reserve has a clear bias towards stimulus and preventive action, as its half-point cut in interest rates this week shows.
Fed shocks with half point but signals easing over
US - The U.S. Federal Reserve on Wednesday slashed interest rates by a sharp half percentage point to new four-decade lows to try to reignite the recovery, but signalled it planned no more cuts any time soon.
Cautious Bank of England holds rates steady at 4%
UK - The Bank of England on Thursday left is main interest rate unchanged at 4 per cent for the twelfth consecutive month, despite the US Federal Reserve's unexpectedly large rate cut on Wednesday.