United States
Questions remain after historic Fed loan
The American government's decision to initiate a far-reaching rescue of American International Group (AIG) breaks a number of historic precedents and raises a number of fundamental questions about the role of government in the financial system.
Fed holds rates, room for future cuts
The Federal Reserve has defied market expectations for a cut, opting to keep interest rates on hold at Tuesday's monetary policy meeting.
Geithner skips FOMC meeting
Tim Geithner, the president of the New York Fed and the Federal Reserve System's chief crisis manager since the outbreak of the credit crisis, did not attend Tuesday meeting of the Federal Open Markets Committee (FOMC). Geithner stayed behind in New York…
Fed hosting crisis talks for insurance giant
The Federal Reserve Bank of New York is facilitating crisis talks between state insurance regulators, private sector investors and the management of American Insurance Group (AIG) to devise an emergency capital injection for the beleaguered insurance…
Fed faces crunch call, market now prices in cut
Financial markets have dramatically adjusted expectations of the outcome interest-rate decision to be announced by the Federal Open Market Committee (FOMC) late on Tuesday.
Triple shock leaves Wall Street in disarray
News of the Lehman Brothers' demise, the sale of Merrill Lynch and major concerns over the health of a range of other financial institutions has put the risk of rapid contagion and a systemic meltdown of the financial sector back at the top of central…
Banks step in with superfund
Ten of the world's biggest banks have joined forces to create a $70 billion liquidity fund intended to mitigate the impact of the latest round of financial turmoil.
China fund involved in Lehman bid - report
China Investment Corporation (CIC), Beijing's sovereign wealth fund, is said to be involved in a possible bid for Lehman Brothers, a beleaguered US bank.
Congress to hold hearing to "stay on top" of SWFs
A US Congressman has called a hearing to examine the impact of sovereign wealth funds' purchases of stakes in some of Wall Street's finest.
Silicon Valley typical of US R&D geography
Research and development (R&D) activity in the US tends to be heavily geographically concentrated, a paper published by the Philadelphia Federal Reserve finds.
Core inflation a better signal of price trends
The relationship between headline and core inflation has changed significantly over time, research published by the Federal Reserve finds.
Philadelphia Fed offers virtual help to homeowners
The Philadelphia Federal Reserve has launched an online resource centre in a bid to help prevent foreclosures and lessen their negative influence on neighbourhoods.
Financial education a vital part of Fed mission
Ben Bernanke, the chairman of the Federal Reserve, believes the central bank's role as a financial educator as a vital part of its mission.
Central bankers back Fannie and Freddie takeover
Central bankers worldwide have endorsed the US Treasury's de-facto nationalisation of Fannie Mae and Freddie Mac, the government-sponsored enterprises (GSE) that insure about half of the US's mortgage stock.
Fannie, Freddie to cost US $300bn: ex-Fed's Poole
William Poole, a former president of the St Louis Federal Reserve, has said that saving Fannie Mae and Freddie Mac will cost the taxpayer $300 billion.
How economic news moves markets
Only a few economic announcements tend to impact markets, research published by the New York Federal Reserve finds.
The Fed should have followed the shadows: Poole
The US economy would have performed better during the Great Inflation era if the Federal Reserve had implemented the policy of the Shadow Open Market Committee, new research co-authored by William Poole, a former president of the St Louis Fed, finds.
Beige Book signals economy remains weak
The latest edition of the Federal Reserve's Beige Book, which charts business conditions in the 12 districts overseen by the regional Feds, indicates the pace of economic activity remains slow across most of the US.
Three regional Feds wanted discount rate rise
Directors of three regional Federal Reserves called for a quarter-point increase to the discount rate in July.
Fed funds rate fails to capture policy stance
Eric Rosengren, the president of the Boston Federal Reserve, has noted that the federal funds rate cannot be seen as a fair reflection of the Fed's monetary policy stance in times of stress.
Fed's Kroszner dismisses decoupling
The recent turmoil has served to reaffirm the adage that when the US sneezes the rest of the world catches a cold, a senior Federal Reserve official has argued.
Fed will shun Mishkin's call for explicit goal
Despite Frederic Mishkin's rigorous advocation, much stands in the way of the departing governor's wish for the Fed to adopt an explicit inflation goal. But it may not need to, writes Claire Jones, the editor of Central Bank News.
Divorcing money from monetary policy
By paying interest on reserve balances at the central bank's target interest rate, a central bank can increase the supply of reserves without driving market interest rates below its target, says a new paper from the New York Federal Reserve.
Quarterly US growth revised to 3.3%
Strong export performance, aided by the weak dollar, and less inventory liquidation led to stronger-than-expected US growth in the three months to June.