Tag Archives: open market committee

Should The US Remove The Mortgage Interest Deduction?

The mortgage interest tax deduction is one of many perverse tax incentives that lure Americans into excessive debt. And what is so special about mortgage interest? Why shouldn’t my credit card interest be tax deductible? I’m for doing away with … Continue reading

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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

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Three Weeks In A Row Mortgage Rates Rise

They have been at record lows, but few economists expected that to last. With the federal government running massive deficits, there’s competition for money which drives up its price aka interest rates. By historical standards, mortgage rates are still extremely … Continue reading

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Federal Housing Administration Updates

From the New York Times: During the subprime boom, the Federal Housing Administration, created in 1934 to help lower-income and first-time buyers purchase homes, all but sat out the party. Borrowers abandoned the FHA in favor of conventional loans that … Continue reading

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Economists Analyze The Latest Federal Reserve Rate Cut

As a consequence of the cut, oil is up $4 per barrel and the U.S. dollar is down significantly. Consumer confidence is at a record low. The Dow was down 70 points today. US News publishes: Ian Shepherdson, chief U.S. … Continue reading

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What Determines 30 Year Interest Rates?

From MSNBC: Even under normal circumstances, the Fed’s impact on all interest rates is limited. The money market ultimately sets the true “cost” of money — just like the stock market sets the value of shares. Banks and investors with … Continue reading

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Federal Reserve Offers Refinance Solutions

WASHINGTON (AFP) — The US Federal Reserve said Monday it would begin to pay interest on bank deposits for the first time and expand its refinancing operations for commercial banks to 600 billion dollars in a bid to increase liquidity. … Continue reading

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Preserving Capitalism

From Barron’s: The TARP effectively uses the U.S. Treasury’s balance sheet to take on impaired mortgage assets from banks and other financial institutions that can’t find buyers for such instruments- at least not at anything but giveaway prices. THE QUICKEST … Continue reading

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Bush Wants Deal With Congress On Housing Bill

From the New York Times: The White House has argued that provision helps lenders more than borrowers. Bush said the housing crisis and soaring fuel prices were challenges facing the U.S. economy, but ultimately the country would recover. The Senate … Continue reading

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Fed Emphasises Its Commitment To Holding Inflation In Check

And its support for a strong dollar. Here’s the New York Times: The remarks by two regional Fed presidents followed hard-line comments on Monday from Fed Chairman Ben Bernanke that the U.S. central bank would "strongly resist" any deterioration in … Continue reading

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