News
Market Watch | Bernanke defends low rates to community bankers
Federal Reserve Chairman Ben Bernanke on Thursday told community bankers that he recognizes that the central bank’s low interest rates hurts their profitability, but he added that the policy is necessary to drive the economic recovery.
Bloomberg | ECB Is Said to Swap Greek Bonds for New Debt to Avoid Any Enforced Losses
The European Central Bank is swapping its Greek bonds for new ones to ensure it isn’t forced to take losses in a debt restructuring, three euro-area officials said.
Econ Comments & Analysis
Washignton Times | Get the Fed out of the housing market
A stable dollar and prices are consistent with maximum sustainable job and wealth creation. However, the Fed’s dual mandate to pursue full employment and price stability has given it license to meddle in the economy to boost short-term employment, with disastrous consequences.
WSJ | The Volcker Diversion
Team Obama and Democrats in Congress couldn't figure out how to turn his sensible idea—prohibiting banks from gambling with taxpayer money—into law. Now Mr. Volcker seems to be acknowledging that federal regulators can't draft a Volcker Rule either, at least not without help from the same bankers who will be subject to it.
AEI | The pain of zero interest rates
The current economic environment of low—virtually zero—interest rates has hit savers hard, but the US Federal Reserve’s accommodative monetary policy is actually having a stabilizing effect on the economy.
