News
FOX Business | Wholesale Inflation Rises More Than Expected
U.S. producer prices rose more than expected in June, pointing to an apparent increase in inflationary pressures that could make the U.S. Federal Reserve more comfortable about reducing its monetary stimulus.
Econ Comments & Analysis
WSJ | Once Again, the Fed Shies Away From the Exit Door
The Federal Reserve's liquidity operations during the 2008 financial panic represented good central banking: providing loans when markets freeze up. But instead of simply letting those programs expire as the panic subsided, the Fed embarked on its first quantitative easing program (QE1)—large-scale purchases of mortgage-backed securities and Treasurys—trying to stimulate the housing market and the economy.
Fortune | Higher interest rates: A bitter pill for banks
Banks have been bemoaning the low interest rate environment for years as it has translated into scant profits from lending and writing mortgages. But with the Federal Reserve signaling that it might finally be ready to hike rates, there is concern that the banks may be in for a rude awakening.
AEI | What does Larry Summers really think of QE?
With Summers revealing little, probably on purpose, one must deduce his true views on QE. There are three possible approaches he could bring to the Federal Reserve, each with dramatically different implications for monetary policy.
Blogs
WSJ | Sizing Up Market Expectations for the Fed’s QE
Federal Reserve Chairman Ben Bernanke has said a couple of times since the Fed’s June 19 policy meeting that the central bank’s plans for its $85 billion per month bond buying program were pretty close to what the market has been expecting. His message: There’s no need to overreact.
