Tag: federal reserve board

Fannie, Freddie, and You

This weekend saw the 2nd largest bank failure in US history. Now comes word that the federal government will step in to bail out Fannie Mae and Freddie Mac, two public companies (really government-sponsored enterprises, or GSEs) which have for decades relied on an implicit federal government guarantee of their debt to borrow cheaply to

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Bernanke: “Recession”

So Bernanke tells us what we knew about 4 months ago. Recession. I’m not sure we needed him to tell us this given the activities of the Fed over the last couple of quarters. Naturally, the Fed can always attempt to inflate the dollar in order to avoid or shorten an economic downturn. In DC

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Fed cuts rates again

The Fed follows up its 0.75% cut in the fed funds rate last week with another 0.50% cut, announced this afternoon. That’s a 1.25% rate cut in little over a week. Is the Fed racing to close the barn door after the recession got out? Sure feels like it. Oh, by the way it’s a

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The Fed Forestalls the Inevitable

The Federal Open Market Committee announced prior to today’s market open that it had lowered its federal funds target by three-quarters of a percent, or 75 basis points, to 3.50%. This certainly feels like the house extending a drunk casino patron more credit after they’ve already burned through their last two extensions. The Fed forestalls

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It’s Coming

Despite the public efforts of the Fed and the Bush Administration, last week the Dow fell 507 points. The S&P 500 Index is currently down 9.75% for the year through last Friday’s close. Recession: It’s Coming Today, markets from Asia to Europe are dropping like rocks in anticipation of the US economy heading into recession. Is

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25 Basis Points

Press Release for 25 Basis Points “Release Date: December 11, 2007 For immediate release The Federal Open Market Committee decided today to lower its target for the federal funds rate 25 basis points to 4-1/4 percent. Incoming information suggests that economic growth is slowing, reflecting the intensification of the housing correction and some softening in

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What Will the Fed Do?

The Federal Open Market Committee is expected to announce a third consecutive cut in the federal funds rate today. Equities were up early, but have fallen to near their open in advance of the announcement which will come later today. What will the Fed do? What Will the Fed Do? It would seem that the

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Crude hits high, Dollar hits low

NYMEX crude oil futures contracts for December delivery closed at an all-time high of $91.86 per barrel today, due to falling domestic supplies, ever growing global demand, political instability in the Middle East, continued weakening of the US dollar, and some speculation. Despite the run-up, OPEC seems unlikely to boost production. Crude hits hight, while

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Fed Lowers Rate Target – Time to Pop the Cork?

Yesterday afternoon, the Federal Open Market Committee did what nobody expected. The Fed lowers rate target. If you paid any attention to published reports, then they acknowledged what was already priced in by the futures markets and lowered its target for the federal funds rate by 50 basis points to 4.75%. While US equity markets

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