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Wednesday, January 16, 2013

Monetary

News                                                                                                                             
National Journal | Why the Fed Is So Worried About the Debt-Limit Dispute
Federal Reserve Chairman Ben Bernanke is worried about the game of chicken that’s being played between the White House and Congress over the debt ceiling — and not only for the obvious reason that the stakes for the economy are huge and would affect the central bank's monetary-policy stance.
Washington Post | Secrets of the crisis revealed: What to expect from transcripts of 2007 Fed meetings
For anybody who cares about how the country ended up in this precarious economic state, a very big day is coming soon, as information that has been under lock and key for the past five years will be shared with the world.
CNN Money | Inflation was tame in 2012
Consumers paid modestly higher prices for gas, food and shelter in 2012, but overall inflation was more subdued than in 2011.
Bloomberg | Fed’s Rosengren Sees Room to Expand QE to Spur Employment
Federal Reserve Bank of Boston President Eric Rosengren said the Fed could expand its $85 billion monthly bond buying should record easing not make progress in achieving full employment and stable prices.

Econ Comments & Analysis                                                                                            
Real Clear Markets | Who Is the Fed Helping? Not the Little Guy
For more than five years the Federal Reserve has conducted an unprecedented monetary expansion. Over this stretch the Fed's balance sheet has tripled. Its key interest rate has been zero since December 2008, forcing down rates across the credit spectrum on everything from mortgages to municipal bonds.