The Federal Reserve said it was not likely to raise interest rates until the end of 2014, adding 18 months to the expected duration of its response to the slump.

Originally posted here:
Fed to Maintain Rates Near Zero Through Late 2014

In the most difficult economy in a generation, middle-income and poor Americans are hurting the worst. Congress is tied in knots, barely able to pass even the most basic measures to help. That has put pressure on the one arm of government with the power and the flexibility to try to boost ordinary Americans’ fortunes: the Federal Reserve. But the limited policies the Fed has at its disposal mostly put money in the hands of the affluent, at least through their direct effects. The affluent, in turn, are less likely than most to spend that money in the wider economy. Read full article > >

Go here to read the rest:
For those hurting most, Fed’s remedies limited

We live in a time of such economic strangeness that small events — for good and ill — inspire outsize reactions. A case in point is the response to Wednesday’s announcement by the Federal Reserve that, cooperating with the European Central Bank (ECB) and other government banks, it would “provide liquidity support to the global financial system.” Read full article > >

Read the rest here:
Great news from the Fed! Wait, what did it do?

Trade groups representing retailers, convenience stores and grocers filed a lawsuit against the Federal Reserve, asserting that an additional variable fee violates the law.

Go here to see the original:
Retailers Push for Yet Lower Debit Fees

When Federal Reserve policymakers meet to decide the nation’s monetary policy, they usually discuss where the economy is heading and how they should adjust interest rates to try to keep prices stable and Americans employed. At their meeting this week , bigger ideas will be on the table. No major policy changes are expected out of the two-day session beginning Tuesday, but the discussion will probably focus on some core questions about how the central bank communicates with the public about its goals and expectations for the economy. Read full article > >

See the article here:
Fed policymakers mull how to share economic goals and expectations

The week will include key data on housing and inflation, as well as a speech by Federal Reserve chief Ben Bernanke. Monday The Federal Reserve releases its latest data on industrial production in September, and analysts expect it will show the same steady-but-slow growth that other indicators have pointed to in recent weeks. They project a 0.2 percent gain in output last month, which would be enough to push capacity utilization, a measure of how much factories are using their equipment, to 77.5 percent. Read full article > >

View post:
Key economic events for the week of Oct. 17

The Federal Reserve might move toward publicly announcing what economic conditions would lead it to change policies, according to minutes of the central bank’s last policy meeting released Wednesday, which show an institution facing deep internal divides over the direction of monetary policy. At its Sept. 20-21 meeting, the Fed unveiled a new strategy to try to boost the ailing economy: shifting $400 billion of its holdings of shorter-term Treasury bonds into longer-term bonds in an effort to push down long-term interest rates. However, two members of the policy committee “said that current conditions and the outlook could justify stronger policy action,” according to the minutes. Still, they supported the decision to adjust the Fed’s portfolio holdings, “as it did not rule out additional steps at future meetings.” Read full article > >

The rest is here:
Fed divided on monetary policy action, minutes show

Federal regulators unveiled a 298-page draft Tuesday outlining new rules to prevent big banks from trading for their benefit rather than on behalf of customers, nearly two years after the Obama administration endorsed such a measure. The “Volcker Rule,” named after former Federal Reserve chairman Paul Volcker, would forbid banks from owning hedge funds and private-equity funds and prohibit them from making certain kinds of trades merely for their profit. It was included in the far-reaching Dodd-Frank financial overhaul legislation passed by Congress last year. Read full article > >

Here is the original post:
Regulators release plan for Volcker Rule limits on bank trading

The Federal Reserve’s long-awaited report said that big banks had taken significant steps in deferring a greater portion of compensation and shifting more pay in the form of stock.

Continue reading here:
Fed Sees Progress in Bank Compensation Plans

The Federal Reserve’s latest push to revive the economy this week had a key aim: Drive low mortgage rates even lower to strengthen the ailing housing market and help cash-strapped borrowers get out from under higher-interest loans. But that attempt to throw a lifeline to struggling homeowners faces a stark reality: Despite historically low interest rates, the very people most in need of the kind of relief that could come from refinancing their homes have found it difficult to qualify. Read full article > >

Read the original:
Fed drive to lower mortgage rates may fall short

Global shares fall sharply after the Federal Reserve gives a stark warning about the state of the US economy.

See the original post:
Global shares drop on Fed warning

BERLIN –World markets plunged Thursday after the Federal Reserve took a dramatic step to help revive the U.S. economy — and in the process sent a message that America’s financial malaise seems unlikely to dissipate any time soon. Key European and Asian indexes were down more than 4 percent. Investors took the Fed’s surprise action to purchase longer-term bonds–an effort to push down long-term interest rates even further–as a sign that it felt the U.S. downturn could last for a long time. That pessimism added to a growing sense that the international economy is approaching a precipice. Read full article > >

Read the original:
World markets fall sharply after Fed action on bonds

Wall Street shares fall after the Federal Reserve announces its $400bn Operation Twist scheme to help stimulate the flagging US economy.

Continue reading here:
Fed launches stimulus initiative

The Federal Reserve is shifting $400 billion from short- to long-term Treasury securities to push interest rates down and encourage companies to borrow and spend.

Visit link:
Fed Moves to Push Down Long-Term Rates

On Tuesday, House Speaker John Boehner, Senate Minority Leader Mitch McConnell, and their respective number twos sent an extraordinary letter to Federal Reserve Chairman Ben Bernanke. “It is our understanding that the Board Members of the Federal Reserve will meet later this week to consider additional monetary stimulus proposals,” they say. “We write to express our reservations about any such measures.” Read full article > >

Read the original post:
Wonkbook: Nice central bank you got here. Shame if something should happen to it.