Fed Chairman Ben Bernanke told Congress that despite some good news on the job front, the recovery has been "uneven and modest."
Originally from WSJ.com: Economy
Fed Chairman Ben Bernanke told Congress that despite some good news on the job front, the recovery has been "uneven and modest."
Originally from WSJ.com: Economy
Fed Chairman Ben Bernanke told Congress that despite some good news on the job front, the recovery has been "uneven and modest."
Originally from WSJ.com: Economy
NEW YORK (MarketWatch) - The recovery of the housing market will take time as homeowners grapple with too much debt, said James Bullard, the president of the St. Louis Federal Reserve Bank, on Friday. In the aftermath of the recession, many homeowners would gladly reduce the square footage and other amenities in exchange for a lower level of debt. "The only realistic way for that to happen is to allow the natural depreciation in the housing capital stock to catch up with household desires," Bullard said at a forum of monetary policy sponsored by the University of Chicago Booth School of Business. "Unfortunately, that is a long process," he said. In addition, the market is suffering because a generation of potential homeowners may have been scared off by the collapse of the housing bubble. In general, Bullard said that central bankers are having difficulty crafting policy in this recession and subsequent recovery because this is the first in which debt levels were too high.
Originally from MarketWatch
WASHINGTON (Reuters) - The weak economic recovery has made it harder for banks to make money from loans but the financial conditions of smaller institutions appear to be solidifying, Federal Reserve Chairman Ben Bernanke said on Thursday.
Originally from Reuters: Business News
WASHINGTON (Reuters) - The weak economic recovery has made it harder for banks to make money from loans but the financial conditions of smaller institutions appears to be solidifying, Federal Reserve Chairman Ben Bernanke said on Thursday.
Originally from Reuters: Business News
CLEVELAND, Ohio (Reuters) - The housing market is holding back the broader economic recovery now that foreclosures have become "a national crisis," a top Federal Reserve official said on Friday.
Originally from Reuters: Business News
The Fed instituted the zero-interest-rate policy (ZIRP) in December 2008 in response to the financial crisis. The ZIRP policy has been extended to late-2014 following the January 24-25 FOMC meeting, which will make it a six-year project. The current ZIRP policy of the Fed has its critics and advocates; Bill Gross presents arguments in today's Financial Times article for putting an end to the ZIRP policy because it is the root cause of economic woes today. His focus is on the absence of incentives for banks to find suitable projects to finance if they can park money at the Fed risk free for 25bps. He also adds that investors are most likely to shun Treasury securities as "there are multiples of downside price risk compared to appreciation."
Originally from The Market Oracle
US Federal Reserve chairman said the pace of the economic recovery remains “frustratingly slow” and “the sluggish expansion has left the economy vulnerable to shocks”
Originally from US Economy News & Federal Reserve Board from the Financial Times
Rep. Debbie Wasserman Schultz (D-FL) asks Fed Chairman Ben Bernanke about the impact the Recovery Act had on U.S. job growth.
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