BEIJING, March 8- It will be hard for China to avoid short-term economic pain from interest rate reforms, central bank governor Zhou Xiaochuan was quoted by state television on Saturday as saying.» Read More
In the spirit of Outlook '08, here are my predictions for 2008. We'll see how I did come this time next year. My personal favorite is number 7!!
Uncertainty and housing. Those are the key words in forecasts of the US economy in 2008. And just how bad the economy performs depends mostly on the depth and duration of the housing recession and the great unknowns of the credit crunch.
I realize we’re in the doldrums of December, not exactly a hot time in housing, even during a boom cycle, but I’m hearing some disconcerting rumblings from some builders, anecdotally speaking of course. One mid-sized private builder told a friend of mine that potential customers coming through their model-home doors are openly hostile. They’re not just looking for good deals; they’re looking for payback.
Several top central banks including the Federal Reserve and the European Central Bank announced plans to address elevated pressures in short-term funding markets.
The U.S. Federal Reserve on Wednesday announced with other major central banks measures to alleviate upward pressure in interbank markets as financial sector troubles have made it more difficult for banks to raise funds. Following are some major steps the Fed has taken to provide funding to the banking system.
The text of the Federal Reserve's statement on adding additional liquidity into money markets released Dec. 12.
The Federal Reserve cut interest rates a modest quarter point, disappointing Wall Street, which had hoped for more-aggressive action.
Wall Street's post Fed selloff could spill into Wednesday morning as the Street continues to debate why the Fed didn't deliver more interest rate relief, particularly when it's becoming increasingly glum on the economy.
This is a transcript and video clip of the first part of Warren Buffett's live interview this morning on Squawk on the Street with CNBC's Becky Quick, in which he talks about the Federal Reserve, the U.S. dollar, the economy, and how his retail businesses are doing this holiday season. A transcript from the rest of the interview will also be posted here on Warren Buffett Watch.
Warren Buffett did a taped interview in San Francisco with CNBC's Becky Quick last night. Buffett is in that city for today's fund-raiser on behalf of Senator Hillary Clinton's presidential bid. Becky showed some excerpts from her taped chat on Squawk Box earlier today. In this clip, she asks for Buffett's thoughts on today's upcoming Federal Reserve decision on interest rates.
In a live interview this afternoon on CNBC with Hillary Clinton standing by his side, Warren Buffett again warned that the U.S. could fall into recession, if unemployment increases significantly. But he said he's not sure that will happen and he's been surprised that the employment market has held up as well as it has so far.
Stocks closed with huge losses after the Federal Reserve announced it was cutting interest rates only a quarter point, disappointing traders looking for twice that amount.
This is not what the markets wanted. The Fed cut 25 basis points on both the fed funds rate and the discount rate. I said markets would sell off if there was not either 1) aggressive rate cuts (50 basis points), and/or 2) aggressive statements that the Fed would do all it could to forestall the crisis in the credit markets.
A quarter-point cut wasn't enough, he says. So what happens now?Investing can be confusing. Luckily, Cramer has mapped out some road rules for all you Home Gamers trying to navigate the jungle that is Wall Street. Think of it as "Mad Money 101" –- some fundamental advice to keep in mind as you play the market. Whether you're a first time investor or a seasoned financier, it's always good to remember the basics.
U.S. Treasurys surged Tuesday, fueled largely by a sell off in stocks after the Federal Reserve cut benchmark lending rates by a quarter percentage point, disappointing equity investors who had hoped for a larger move.
The Federal Open Market Committee decided today to lower its target for the federal funds rate 25 basis points to 4-1/4 percent.
As we all eagerly await the Fed decision at 2 pm today, I want to just clarify what exactly a rate cut will and will not affect. It’s pretty well accepted now that the Fed will lower its key short-term interest rate (“the Fed Funds rate”) by probably a quarter point, maybe a half, but that’s the outside bet. So what exactly does that do to residential mortgage rates?
Financial markets expect the Fed to trim interest rates a quarter point this afternoon, but many investors are hoping for a half-point cut.
A quarter-point cut in the Fed Funds rate may not be enough for the markets. Admittedly, much will depend on the wording, and aggressive commentary that the Fed will cut as needed to deal with the credit crisis will no doubt help. But those calling for more aggressive action clearly have seized some of the rhetorical high ground.
The U.S. economy is in the danger zone and one good shock could send it into recession next year, according to Global Insights, which released its top 10 predictions for 2008 Tuesday.The Boston-based forecasting company said GDP growth in the fourth quarter of 2007 and first half of 2008 is expected to be very weak, and will make the United States extremely vulnerable.