Category Archives: federal reserve

Massive Federal Reserve Profit Of $78.4 Billion In 2010

I guess you can make good by doing good. The Federal Reserve has been intervening massively into the economy, in particular by buying mortgage bonds. I was surprised to find that the Federal Reserve made an impressive profit by so … Continue reading

Posted in federal reserve | Tagged , , , , , | Comments Off on Massive Federal Reserve Profit Of $78.4 Billion In 2010

Federal Reserve Determined To Keep Short-Term Interest Rates Near Zero Until Unemployment Falls

The American unemployment rate is 9.8% and there is no prospect of a significant fall in that number until at least 2015. There are signs that the economy is picking up and that has driven up interest rates, which the … Continue reading

Posted in federal reserve | Tagged , , , , , | Comments Off on Federal Reserve Determined To Keep Short-Term Interest Rates Near Zero Until Unemployment Falls

Federal Reserve Expects High Unemployment Indefinitely

This is bad news for housing values. If people don’t have jobs, they can’t afford to pay for mortgages. This reduces demand for homes, which drives down prices, drives down housing values, ending people HELOC (home equity lines of credit), … Continue reading

Posted in federal reserve | Tagged , , , , , | Comments Off on Federal Reserve Expects High Unemployment Indefinitely

Federal Reserve Releases PSA About Wise Credit Card Use

The Federal Reserve wants to improve its image. Currently, people think about it as an agency that facilitates bailouts of fat cats on Wall Street. The Obama administration is more interventionist than the Bush administration. Even though the Fed is … Continue reading

Posted in federal reserve | Tagged , , , , , | Comments Off on Federal Reserve Releases PSA About Wise Credit Card Use

Inflation, Interest Rates Expected To Stay Low Into 2010

The Federal Reserve is playing a dangerous game. The dollar is record lows. Gold is at record highs. Oil is at $80 a barrel. The economy is underperforming and inflation remains low. The Washington Post reports on this delicate dance … Continue reading

Posted in federal reserve | Tagged , , , , , | Comments Off on Inflation, Interest Rates Expected To Stay Low Into 2010

Federal Reserve Struggles To Loosen Credit Market

The Federal Reserve is operating a program to buy over one trillion dollars worth of mortgage-backed securities. This keeps mortgage interest rates at record lows. This program is expensive and members of the Federal Reserve board are arguing about whether … Continue reading

Posted in Economy, federal reserve | Tagged , , , , , | Comments Off on Federal Reserve Struggles To Loosen Credit Market

Despite Trillions Of Dollars Of Interventions, The Debt Market Remains Paralyzed

It’s impossible to get a loan from a bank these days unless you have a credit score north of 700 and a lot of documentable income. Until people are ready to buy bonds backed by real estate, by homes and … Continue reading

Posted in federal reserve | Tagged , , , , , , , , | Comments Off on Despite Trillions Of Dollars Of Interventions, The Debt Market Remains Paralyzed

The New Lending Rules

Until now, states have taken the lead role with rules on lending. On Oct. 1, the Federal Reserve’s new federal rules come into effect. Those with poor credit currently pay up to two interest points more. The new rules force … Continue reading

Posted in federal reserve, Refinance | Tagged , , , , , | Comments Off on The New Lending Rules

Fed Keeps Short-Term Interest Rates Near Zero

Most economists expect inflation to jump as the federal government must finance enormous deficits, theoretically crowding out private businesses in the struggle for loans. Though economic activity is no longer declining, it’s not advancing much either. A shaky economy prompts … Continue reading

Posted in federal reserve, Rates, Refinance, Regulation | Tagged , , , , , | Comments Off on Fed Keeps Short-Term Interest Rates Near Zero

Fed Wants To Wean Housing Market Off Its Trillion-Dollar Intervention

The Federal Reserve has decided to keep interest rates at their current levels. They’re pulling back on their program to buy about $1.5 trillion in mortgage-backed securities. The Fed wants to keep mortgage rates low to keep the housing market … Continue reading

Posted in federal reserve | Tagged , , , , , | Comments Off on Fed Wants To Wean Housing Market Off Its Trillion-Dollar Intervention