Fed funds rate news stories on Newser

Bernanke: Fed Still Has Tricks Up Its Sleeves

Kevin Spak — Fri, 27 Aug 2010 10:05:53 CDT

Ben Bernanke admitted that economic growth was “less vigorous than expected,” in his speech at Jackson Hole today, but said the Federal Reserve wasn’t going to act just yet. The Fed Funds Rate is near zero, but Bernanke said the central bank still had some “unconventional measures” it could use...

How Bankers Are Gaming the US to Get Richer Than God

Kevin Spak — Thu, 13 May 2010 12:54:56 CDT

There wasn't a single day last quarter in which Wall Street's big banks—Goldman Sachs, JP Morgan, Bank of America and Citigroup—lost money trading. How is that possible? Isn't trading supposed to be risky? Not when Uncle Sam is guaranteeing it isn't, explains a steamed Henry Blodget of Business...

Bernanke Reveals Plan to Tighten Credit

Wed, 10 Feb 2010 14:15:52 CST

Ben Bernanke has begun outlining the Fed's strategy for reeling in stimulus money once the economy has recovered further, telling the House Financial Services Committee today that the Reserve will likely increase the interest rate it pays banks that deposit money with it. That would encourage banks to leave more...

Fed Leaves Rate at Record Low

Wed, 04 Nov 2009 13:43:54 CST

The Federal Reserve today held a key interest rate at a record low and again pledged to keep it there for an "extended period" to foster the fragile economic recovery. The Fed says economic activity has "continued to pick up" and that the housing market also has grown stronger, a...

Fed Nearly Exhausts Options

Kevin Spak — Wed, 18 Mar 2009 08:53:38 CDT

The Fed is almost sure to leave the federal funds rate alone today, mostly because, at about 0%, it literally can’t go any lower. So with deflation still looming, what’s Ben Bernanke to do? One Goldman Sachs analyst says the Fed needs to shave the equivalent of 8 more points...

Falling Interest Rates Whack Legal Aid Groups

Kevin Spak — Mon, 19 Jan 2009 13:11:23 CST

There’s been some collateral damage from the Federal Reserve’s slashing of interest rates: legal aid societies. These groups, which aim to help the poor in civil cases, such as unemployment or foreclosure disputes, have long relied on little-known programs to draw interest from short-term deposits from clients. With the Fed...

Fed Cuts Rate to 0%-0.25%

Tue, 16 Dec 2008 13:40:58 CST

The Federal Reserve today cut its target for a key interest rate to the lowest level on record and pledged to use "all available tools" to combat a severe financial crisis and prolonged recession. The central bank says it reduced the federal funds rate, the interest that banks charge each...

Krugman: Throw Away Prudence to Fix Economy

Kevin Spak — Fri, 14 Nov 2008 12:03:01 CST

The financial world has been turned upside down, and while we may not be headed for another Great Depression, we are embroiled in “depression economics,” writes Paul Krugman of the New York Times , a time when normal economic tools like the Fed's rate-cutting powers have “lost all traction.” In times...

Stocks Jump on Rate-Cut Hope

Kevin Spak — Tue, 28 Oct 2008 08:53:06 CDT

Stocks shot up at the bell this morning, powered by rallies overseas and speculation that another Fed rate cut is coming down the pike. The Dow rose 239, while the S&P and Nasdaq saw 2.9% and 3.3% jumps respectively. Hong Kong’s Hang Seng in particular saw a dizzying...