Tag Archives: the fed

A report by Bloomberg states that President Donald Trump has accused the Federal Reserve of  behaving like a “stubborn child” as it decided to not lower interest rates.  ...

Is a recession heading our way in 2020? If so, what is The Federal Reserve doing to fight it? Well, that answer may change depending who you ask. ...

Home lending in some areas of Cleveland Fed’s region has not yet fully recovered from the housing crisis. Here are the factors that are still impacting housing in this area.

Mortgage rates rose again during the week according to a Freddie Mac survey, but here’s why the latest surge isn’t impacting borrowers … yet.

The Fed has voted for the second time this year to raise interest rates, a decision that was hinted at back in March by Janet Yellen, FOMC Board of Governors Chair. The FOMC is of the opinion that waiting too long to scale back accommodations could potentially cause a rapid increase in rates, which could disrupt the market and send the economy into another recession. It is currently unclear how the hike in interest rates will affect mortgage rates.

Bank boards might see less directives from the Federal Reserve if Jerome Powell has his way. The Federal Reserve Governor would like to allow banks’ board of directors to spend more time worrying about management and less time on day to day tasks. He also acknowledges the industry’s frustration with the lack of transparency in the CCAR, and would like to amend it to make it more efficient and effective.

Despite removing the “patient” policy, the Federal Open Market Committee remained steady on the belief that interest rates will not increase by their April meeting. Fed Chair Janet Yellen emphasized in a press conference following the meeting, the removal of the pledge doesn’t mean Fed rates will increase by June.

In recent interviews, the Fed has made it clear they want to move away from the pledge to be patient. They have held their benchmark short-term rate, the federal funds rate, near zero since December 2008. The lackluster housing market was concern on Yellen’s mind when she gave the speech emphasizing the patience pledge.

In January 2009, Bank of America received its second bailout of $20 million from the Fed to help stabilize the company after its purchase of Merrill Lynch. At the time, Merrill Lynch had lost more than $15 billion in the previous quarter and Bank of America had lost $2.4 billion.