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Federal Reserve raises interest rates to 3.25%

The Federal Open Market Committee decided to raise its target for the federal funds rate by 25 basis points to 3-1/4 percent on Thursday 30 June. In its statement the FOMC maintained its "measured" stance and said that although energy prices have risen…

US Senators delay China currency bill vote

U.S. Senators Charles Schumer and Lindsey Graham have delayed a vote on their bill to impose tariffs on Chinese imports after Federal Reserve Chairman Alan Greenspan and Treasury Secretary John Snow persuaded them China will make its exchange rate more…

Chicago Fed National Activity Index, May 2005

The Chicago Fed National Activity Index for May 2005 was +0.10, up from +0.05 in April. Two of the four broad categories of indicators that make up the index - production and income and consumption and housing - made positive contributions.

Fed's Olson on regulatory relief

In testimony on 'Regulatory relief' given on 21 June, Mark Olson of the Federal Reserve said that Congress should give the Federal Reserve more flexibility in setting reserve requirements and allow it to pay interest on balances held by depository…

Fed's Stern sees US rate rises continuing

Federal Reserve Bank of Minneapolis President Gary Stern sees no reason for the Federal Reserve to stop raising interest rates now as the economy expands at a desirable pace, a Japanese newspaper reported on Monday 20 June.

Finding a new captain for our economic ship

With speculation mounting as to who will succeed Alan Greenspan as chairman of the Federal Reserve, another article published this week comes up with the usual names, but also includes interesting quotes from central bank watching academics and a former…

Fed's Poole on the term structure of interest rate

In the speech 'Understanding the term structure of interest rates' given on 14 June, William Poole of the Federal Reserve Bank of St. Louis said long-term interest rates have stayed steady in the face of rising short-term rates because the economy, and…

Richmond's Lacker on retail financial innovation

In the speech 'Retail financial innovation' given on 14 June, Jeffrey Lacker of the Federal Reserve Bank of Richmond said calls for tighter rules on consumer lending are an inevitable companion to the dramatic rise in the availability of credit but must…

Fed's Kohn on managing risk

In the speech 'Managing risk in a changing economic and financial landscape' given on 15 June, Donald Kohn of the Federal Reserve said the US current account deficit and surge in house prices may not be sustainable and urged banks to protect themselves…

Fed's Bies on current regulatory issues

In the speech 'Current regulatory issues' given on 14 June, Susan Schmidt Bies of the Federal Reserve said Federal banking supervisors are concerned that borrowers looking to buy commercial and residential real estate "could become increasingly…

Philadelphia's Santomero on the economic outlook

In the speech 'Economic outlook and the role of bank directors' given on 11 June, Anthony Santomero of the Federal Reserve Bank of Philadelphia said he expected US inflation to be well-contained in 2005, allowing the Fed to raise interest rates to a…

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