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Federal Funds Rate

How the Fed Tightened

Stephen G. Cecchetti | Posted 01.08.2016 | Business
Stephen G. Cecchetti

Back in August, we explained the mechanics of how the Fed can tighten policy in today's world of abundant bank reserves. Now that the first policy tightening under the new framework is behind us, we can review how the Fed did it, if there were any surprises, and what trials still lie ahead.

Big Banks Raise Rates As Investors Bet They'll Benefit From Fed's Move

The Huffington Post | Shahien Nasiripour | Posted 12.16.2015 | Business

Large banks, including JPMorgan Chase and Wells Fargo, announced Wednesday they're immediately increasing the cost to borrow as investors bid up bank ...

Why You Shouldn't Worry About A Fed Interest Rate Hike

The Huffington Post | Shane Ferro | Posted 09.14.2015 | Business

The Federal Reserve Board's Federal Open Market Committee meets next week, and there's a small chance that it will raise interest rates for the first...

The Best Monetary Policy Is Strict Financial Regulation

Anthony W. Orlando | Posted 06.18.2014 | Politics
Anthony W. Orlando

In recent years, private-sector forecasters have been surprisingly accurate at forecasting changes in the unemployment rate, but they have been equally inaccurate when forecasting changes in the federal funds rate, the baseline interest rate controlled by the Fed.

Adjusting the Taylor Rule for the Unemployment Rate Bias

Jared Bernstein | Posted 01.23.2014 | Business
Jared Bernstein

All's I'm sayin' here is that we still have a lot of slack in the job market, highly elevated unemployment, and a strong rationale for aggressive monetary stimulus, not to mention fiscal stimulus, but that is blocked by government dysfunction. The message here is thus: good for the politically independent Fed for keeping the monetary pedal to the metal.

Fed To Keep Rates 'Exceptionally Low' For Minimum Of Two Years

Posted 10.09.2011 | Business

Admitting that the growth of the economy has been "considerably slower" than expected, the Federal Reserve announced it will keep the federal funds ra...

Who Will Pay: Wall Street or Main Street , The Tobin Tax or the VAT?

Ellen Brown | Posted 05.25.2011 | Politics
Ellen Brown

Wall Street banks have been saved from bankruptcy by governments that are now going bankrupt themselves; but the banks are not returning the favor. Wall Street needs to be made to pay its fair share, but how?

Fed reduces benchmark rate to as low as zero

AP | Posted 05.25.2011 | Business

WASHINGTON — The Federal Reserve, urgently rewriting its playbook to fight a deepening recession, cut its benchmark interest rate to as low as z...

Federal Reserve Action Sends Stocks Soaring

AP | Posted 05.25.2011 | Business

NEW YORK — A surprised Wall Street bolted higher Tuesday after the Federal Reserve's historic decision to further slash interest rates and provi...

Federal Funds Rate Record Low Point: Fed Makes Historic Cut

AP | Posted 05.25.2011 | Business

WASHINGTON — The Federal Reserve has cut its target for a key interest rate to the lowest level on record and pledged to use "all available tool...

World markets rally, led by Latam, Asia

AP | PAN PYLAS | Posted 05.25.2011 | Business

LONDON — World stock markets were stronger Thursday led by sharp rallies in Asia and Latin America after the U.S. Federal Reserve said it would ...

The Debt vs. Interest Rate Conundrum

Michael Pento | Posted 05.25.2011 | Business
Michael Pento

It now takes about 10 cents on every tax dollar collected just to pay the interest on the debt. As bad as that is, it's only because interest rates are at record lows that the debt is still manageable.

Bernanke: Crisis could prolong economic pain

AP | JEANNINE AVERSA | Posted 05.25.2011 | Business

WASHINGTON — Federal Reserve Chairman Ben Bernanke warned Tuesday that the financial crisis has not only darkened the country's current economic...

Fed shows tough love and holds key rate steady

AP | JEANNINE AVERSA | Posted 05.25.2011 | Business

WASHINGTON — Showing a tough love stance for now, Federal Reserve Chairman Ben Bernanke and his colleagues decided to keep a key interest rate s...

White House Works To Resurrect Economy

AP | TERENCE HUNT | Posted 05.25.2011 | Business

WASHINGTON — Jolted by global recession fears, the Federal Reserve slashed interest rates Tuesday, and President Bush and leaders of Congress jo...