Ben Bernanke
By Mark Lieberman, Five Star Institute Economist | 04/25/2012
With a lone dissent, the Federal Open Market Committee Wednesday voted no change in the target federal funds rate. The economy has been expanding moderately, the FOMC said in the statement issued at the conclusion of its two-day meeting, echoing language in the statement following its meeting last month. After the meeting, the FOMC released its quarterly forecast of the economy and interest rates with more members of the Committee seeing higher rates in 2014 than in the prior forecast.
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By Mark Lieberman, Five Star Institute Economist | 04/11/2012
The economy continued to expand at a modest to moderate pace from mid-February through late March, the Federal Reserve said Wednesday in its periodic Beige Book, reporting faster and solid growth in Kansas City and Minneapolis but moderate or modest growth in Boston, Atlanta, Chicago, Dallas, San Francisco Cleveland and St. Louis. New York reported economic growth picked up somewhat while Philadelphia and Richmond cited improving business conditions.
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By Esther Cho | 03/14/2012
If extremely severe economic conditions were to fall upon the U.S., 15 of the 19 banks tested by the Fed's stress scenario projections are said to be able to survive and continue to lend. The hypothetical stressful scenario included a 13 percent unemployment rate, 50 percent decline in equity prices, and a 20 percent decline in home prices. The scenario covers nine quarters into the fourth quarter of 2013, and the four banks that failed - Ally Financial, Citigroup, SunTrust, and MetLife - were said to have one or more projected regulatory capital ratios that fell below the 5 percent minimum levels at some point over the stress scenario horizon, according to the Fed.
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By Mark Lieberman, Five Star Institute Economist | 03/13/2012
Echoing the statement it issued following its January meeting, the Federal Open Market Committee said Tuesday the economy has been expanding moderately in the last two months, but the housing sector remains depressed in deciding, by a 9-1 vote, to keep the Fed Funds rate at historic low levels. The Committee said "labor market conditions have improved further....the unemployment rate has declined notably in recent months but remains elevated."
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By Krista Franks | 01/11/2012
With a common goal of economic recovery, Congress and the Federal Reserve diverge on the best means to that end. Should the housing sector finance the government's economic policies, or should the government help boost the housing sector? Federal Reserve Chairman Ben Bernanke submitted a white paper to Congress last week as a framework for policymakers to help the housing market, but that move has drawn the ire of at least one senator.
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By Carrie Bay | 11/02/2011
Federal Reserve Chairman Ben Bernanke said at a press conference Wednesday that "ongoing drags from troubled housing conditions and still tight credit" have led Fed officials to downgrade their forecasts for short-term economic growth. Bernanke quite frankly told reporters that problems in the housing sector are a big reason why our economy is not recovering more quickly. Despite the diminished outlook and Bernanke's repeated references to the depressed housing market, the Federal Reserve announced no new policy actions.
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By Krista Franks Brock | 11/02/2011
As several large servicers begin the lengthy process of an independent foreclosure review, Rep. Maxine Waters of California is repeating her request that the process be made public. Waters addresses several concerns in her most recent request, including the difficulty of reaching some of the affected borrowers, conflicts of interests between the banks and the independent reviewers, and the qualifications of those contracted to audit foreclosure cases. Fifteen of Waters' colleagues joined her in her appeal for transparency.
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By Carrie Bay | 08/26/2011
The marketplace was zeroed in on Ben Bernanke and Jackson Hole, Wyoming, in hopes of a signal from the Federal Reserve's chief that new stimulus measures were in the works to rekindle the stalled economy. But there was no mention of new action. Housing was the black eye of the Fed chairman's speech. He said this recession was "unusual" because it was linked to a very deep slump in the housing market, and with an overhang of distressed properties and still-declining home prices, the housing sector is hindering economic growth.
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By Carrie Bay | 06/22/2011
Federal Reserve Chairman Ben Bernanke says its all the distress in the housing sector that's pulling home prices and consumer confidence down and keeping buyers away from the market, despite the fact that the Fed's bond-buying program has succeeded in keeping interest rates low and housing affordable. Bernanke says he'd like to see more efforts to modify loans, but when that's not appropriate, the industry needs to speed up the process of foreclosure and disposition to clear the market.
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By Carrie Bay | 06/08/2011
The Federal Reserve has published a new rendition of its popular Beige Book, relaying insight from professionals in the field on regional market conditions. A number of the 12 Fed districts noted improvements in overall credit quality, specifically Philadelphia, Cleveland, Richmond, Kansas City, Dallas, and San Francisco. New York was the only district to report rising delinquency rates on consumer loans, but it saw delinquencies decline for commercial loans and mortgages.
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