Tag Archives: Federal Reserve

The economy, according to the Federal Reserve's Beige Book, expanded "at a measured pace" in seven of the 12 federal reserve districts--Cleveland, Richmond, Atlanta, Chicago, Kansas City, Dallas, and San Francisco. There was also "a somewhat stronger increase in activity" in Minneapolis and St. Louis. However, Boston and New York showed slower growth and weaker conditions attributable to Hurricane Sandy, and Philadelphia reported "general weakness that was exacerbated" by the storm. According to the Beige Book, business leaders and others "expressed concern and uncertainty about the federal budget, especially the fiscal cliff."

In a speech at the Operation HOPE Global Financial Dignity Summit in Atlanta, Federal Reserve Chairman Ben Bernanke spoke of the amplified effect the housing crisis has had on minorities and low-income families across the country. He pointed out that while homeownership has declined for the nation overall, the decline has been steepest among households with incomes of $20,000 or less. The homeownership decline among African Americans is also steeper than the national average, Bernanke said, referencing data from the Census Bureau.

The implementation of the Basel III capital rules may be postponed beyond the start of 2013, according to a joint statement released by the Office of the Comptroller of the Currency, the FDIC, and the Federal Reserve. The announcement follows a comment period during which many trade organizations and institutions expressed apprehension about the new requirements.

While admitting that creating mortgage lending regulations that prevent abuse without over-burdening community banks is "challenging," Federal Reserve governor Elizabeth A. Duke suggested Friday that policymakers "abandon efforts for a one-size-fits-all approach." Speaking before the Community Bankers Symposium in Chicago, Duke said the Federal Reserve has received a large volume of comments from community banks expressing concern over the proposed regulatory capital requirements.

A survey released by the Federal Reserve shows slight easing of standards and strengthened demand for home loans.

Federal regulators released a notice Tuesday stating their support for financial institutions operating in areas affected by Hurricane Sandy. They both encouraged affected institutions to work to meet the needs of their communities and expressed their lenience on certain reporting and publishing requirements for those institutions.

A study reveals borrowers who defaulted on their mortgages in recent years tend to stay out of the market for much longer than other borrowers.

Global Markets Intelligence suggests the Fed is turning to the housing market "as the last, best hope" for strengthening the economy.

Pointing to slow employment growth and elevated unemployment, the Federal Open Market Committee said Wednesday the Federal Reserve will continue purchasing additional agency mortgage-backed securities at a pace of $40 billion per month. At the same time, the FOMC said it would maintain the target federal funds rate at 0 to 1/4 percent and expected the "exceptionally low levels for the federal funds rate are likely to be warranted at least through mid-2015."

The housing sector is showing strength unmatched in previous years, according to Freddie Mac's Economic and Housing Market Outlook for October.