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bparksj28

Discount Window Borrowings of Depository Institutions from the Federal Reserve (DISCBOR... - 0 views

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    Shows the use of the discount window of the Federal Reserve
bparksj28

Federal Reserve details new round of stress tests - Nov. 16, 2012 - 0 views

  • The Federal Reserve, preparing to embark on its latest round of so-called stress tests, released the details Friday of three economic scenarios it will use to judge the health of the U.S.'s largest lenders.
  • 5% decline in gross domestic product, an unemployment rate of 12% and a volatile stock market which loses half its value.
  • The stress tests are mandated by Dodd-Frank, the financial reform law written in the wake of the 2008 financial crisis that brought down Bear Stearns and Lehman Brothers.
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  • Last year, the Fed's tests showed a majority of the nation's largest banks would be able to weather another deep recession.
  • Ally Financial, Citigroup (C, Fortune 500) and SunTrust (STI, Fortune 500) -- would likely need new capital from either investors or the government in the Fed's adverse economic scenario
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    Dodd-Frank Act - stress test 2012
bparksj28

Federal Reserve official wants low interest rates until unemployment falls to 6.5% - No... - 0 views

  • Charles Evans, president of the Chicago Fed, wants the central bank to keep the federal funds rate near zero until unemployment falls to 6.5% -- a jobless rate not seen since 2008.
  • in January he will rotate into a voting role on the Fed's policymaking committee. For about a year, he has been urging his colleagues to publish clear economic targets that would guide the central bank's policies.
  • . He wants to see the unemployment rate fall to at least 6.5% and inflation not exceed 2.5% a year
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  • hope behind the policy is that numerical targets will lift some of the mystery surrounding the Fed's decisions.
  • As economic data is released, the public can base their expectations for Fed policy on a clearer picture of the central bank's goals.
  • "I support this approach because it would enable the public to immediately adjust its expectations concerning the timing of liftoff in response to new information affecting the economic outloo
  • The Fed has kept interest rates near zero since late 2008 in an effort to stimulate the economy. While the unemployment rate has since fallen slightly to 7.9%, the Fed is still unsatisfied with that level and has been pursuing additional alternative policies to boost the economy further.
  • The Fed's policymaking committee is next scheduled to meet Dec. 11-12.
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