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Hoenig warns on rate overshoot - report

The Federal Reserve must guard against raising interest rates too high, Kansas City Federal Reserve President Tom Hoenig said Friday 19 May in an interview with the Wall Street Journal's Greg Ip.

Bernanke regrets 'lapse of judgment'

Federal Reserve chairman Ben Bernanke said Tuesday 23 May during a Senate Banking Committee hearing that he suffered a "lapse of judgment" when he spoke to a CNBC reporter recently.

Comment: US 'break-even' inflation

News of a sudden increase in inflation fears has made headlines in recent weeks. In the case of the US, some have linked this to idea that new Fed chairman, Ben Bernanke, is perceived as being too soft on inflation. What do the most recent estimates of…

Fed's Lacker on the evolution of consumer finance

In the speech 'The evolution of consumer finance' given on 18 May Jeffrey Lacker of the Federal Reserve Bank of Richmond said a wave of innovation in consumer credit markets has driven a surge in credit availability for the average consumer, but that…

St Louis Fed's Poole on inversion

In the speech 'Inversion' given on 18 May William Poole of the Federal Reserve Bank of St. Louis said he's "been a bit puzzled" by talk beginning last fall that an inverted yield curve would likely herald a recession.

Greenspan says housing bubble over

Former Federal Reserve chairman Alan Greenspan said Thursday 18 May, in his first public U.S. speech since retiring in January, that US consumption could fall now that the US housing market's "extraordinary boom" has ended.

Comment: Safe hands for Fed No. 2 spot

US president George W. Bush opted for a safe pair of hands in the form of Donald Kohn to replace Roger Ferguson as No. 2 at the Fed. Kohn, a 36-year Fed veteran, will be both a countervailing and supplementary force to the more studious Ben Bernanke.

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…

NY Fed's Kos on the foreign exchange market

In the speech 'Recent volatility trends in the foreign exchange market' given on 11 May Dino Kos of the Federal Reserve Bank of New York said there is a risk that the current period of low volatility in the foreign exchange market will not last, and…

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…

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…

Fed raises rates to 5%

The Federal Open Market Committee decided Wednesday 10 May to raise its target for the federal funds rate by 25 basis points to 5 percent. In its statement the FOMC said "some further policy firming may yet be needed."

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