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Thursday, December 13, 2012

Monetary

News                                                                                                                             
Market Watch | U.S. producer prices fall 0.8% in November
U.S. producer prices fell a seasonally adjusted 0.8% in November, mostly because of lower energy costs, the Labor Department said Thursday.
Washington Times | In shift, Fed sets 6.5 percent unemployment goal for easing
The Federal Reserve on Wednesday announced a new easing program to boost the U.S. economy and said for the first time that it will keep interest rates near zero until unemployment falls below a newly established threshold of 6.5 percent.
Market Watch | Fed, central banks extend dollar swap lines
The U.S. Federal Reserve and other major central banks moved Thursday to keep pressures out of financial markets by keeping in place measures designed to make it easy for foreign banks to obtain dollar funding.

Econ Comments & Analysis                                                                                            
WSJ | The Fed's Contradiction
Four years ago this month the Federal Reserve began its epic program of monetary easing to rescue an economy in recession. On Wednesday, Chairman Ben Bernanke declared that this has worked so well that the Fed must keep easing money for as long as anyone can predict in order to save a still-sputtering recovery.
Fortune | How risky is the Fed's major move?
A bold and necessary move? Yes, but the Fed's growing activism has limits and is ultimately inconsistent with the proper efficient functioning of a market economy.

Blogs                                                                                                                             
WSJ | Most on Fed See Rates Low Into 2015
Most Federal Reserve officials continue to expect the central bank to first raise interest rates in 2015, in a projection consistent with new monetary policy thresholds announced by the central bank Wednesday.
Heritage Foundation | QE4: Another Big Step Down a Dangerous Road
The Federal Reserve Board today announced the introduction of yet another hyper-aggressive monetary policy, dubbed “QE4” by some for the fourth round of quantitative easing. Three times a dud, fourth time a charm? Not likely.
WSJ | Parsing the Fed: How the Statement Changed
The Federal Reserve releases a statement at the conclusion of each of its policy-setting meetings, outlining the central bank’s economic outlook and the actions it plans to take.