The Fed should "explicitly" say it will keep rates near zero until the economy is within a year of reaching Fed goals, a policymaker said.» Read More
The Obama administration indicated that it will not unveil new measures to aid the financial industry until next week but will move first on the issue of Wall Street bonuses and executive compensation.
Today is the day Californians begin to personally feel the pain of the state's massive budget gap. As Gov. Arnold Schwarzenegger and top legislative leaders continue to meet behind closed doors to hammer out a plan covering the current $16 billion gap—projected to grow to $42 billion by June, 2010—the state controller is delaying $3.5 billion in payments to conserve cash.
The Obama administration will not unveil new measures to aid the financial services industry this week as had been expected. Instead the issue of Wall Street bonuses and executive compensation will be addressed, an industry source says.
The Obama administration and financial industry representatives are discussing new terms on lending transparency and executive compensation for companies receiving financial aid with an announcement likely this week.
The Federal Reserve signaled it will keep using unconventional tools to cushion the fallout, including keeping interest rates at a record low for "some time."
Below is the statement released by the Federal Open Market Committee after its Jan. 27-28 meeting on interest rate policy:
What a difference three months doesn't make. Though the current financial situation isn't as dire as late September, Happy New Year has quickly turned into deja vu.
The U.S. economy started the new year on weaker footing as recession-shocked Americans retrenched further, forcing retailers to ring up fewer sales and factories to cut back production.
The European Central Bank remains stuck to staff projections that the euro zone economy will shrink by just 0.5 percent this year while inflation slows to 1.4 percent and warns of a low-interest rate trap.
In radically reshaping the TARP, Congressional Democrats want assurances from Obama that he shares their new focus before signing off on new funding.
Federal Reserve Chairman Ben Bernanke said on Tuesday that fiscal stimulus alone would not be enough and further steps to backstop banks may be needed...
In this Web Extra the traders reveal how they're gaming Bernake's Tuesday speech, a Mosaic investor meeting, the JP Morgan Healthcare conference and more.
Lowering housing inventory is key to solving the ailing real estate market and broader economy, said David Rosenberg, Merrill Lynch chief North American economist.
Though most economists agree that bigger is better at this point, they also say size and complexity of the stimulus package could slow its passage at a time when the economy needs a quick-fix.
A government stimulus must ensure that financial institutions are recapitalized and remain “healthy,” said Frederic Mishkin, former Federal Reserve Board governor and Columbia University economics professor.
Federal Reserve officials feared the economy would be stuck in a painful rut for some time despite their decision to slash interest rates to a record low and pledge to use other unconventional tools to fight the worst financial crisis since the 1930s.
Below are the minutes released by the Federal Open Market Committee after its Dec. 15-16 meeting:
After a year-long hangover in 2008, the real estate industry is hoping for some strong, black coffee in the new year.
The US economy is likely to be in worse shape a year from now and will require aggressive government spending and intervention to stem the damage, economist Martin Feldstein told CNBC.
There have been a lot of comparisons between now and the early 1930’s. Does that mean the market is about to plummet like it did in early ’32.