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Between the federal government and the Federal Reserve, about $10 trillion has been pumped into the US economy to prevent a pandemic-fueled economic collapse. Judging by the stock market, you would think we’ve sidestepped a 2008-size disaster. But stocks, at least in the short run, are rarely a good indication of what’s festering inside the …
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This month, under the guidance of Jerome Powell, the Federal Reserve announced it is cutting rates for the first time since the 2008 financial crisis. This rate cut of 25 basis points is a decline from 2.5 percent to 2.25 percent. Powell’s reasoning for the rate cut was to provide a “mid-cycle adjustment” in an …
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The Federal Reserve is making life a little harder for Jamie Dimon and his fellow big bankers until it gets more clarity on just how painful the coronavirus pandemic will be for the American economy. On Thursday, the Fed unleashed a series of restrictions on bank operations over the next few months, including a hard …
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The Federal Reserve and four other regulatory agencies announced on Thursday that they have finalized a rule that will ease restrictions curtailing the ability of banks to make investments in such areas as hedge funds. The announcement of the easing of regulations know as the “Volcker Rule” gave an immediate boost to bank stocks because …
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Systemic racism is choking the US economy by preventing all Americans from fully participating in it, top central bankers say. The heads of two regional Federal Reserve banks recently made economic arguments against racism amid both raging protests against police brutality and the coronavirus pandemic that has disproportionately affected black people. The Fed chiefs contend …
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A large number of small US businesses could fail during the coronavirus recession, the Federal Reserve said on Friday, slowing recovery and creating lasting damage to the world’s largest economy. “The nature of the economic recovery that follows the COVID-19 crisis will depend in part on the survival of small businesses,” the Fed said in …
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The Federal Reserve on Wednesday signaled years of extraordinary support for an economy facing a torturous slog back from the coronavirus pandemic, with policymakers projecting a 6.5 percent decline in gross domestic product this year, a 9.3 percent unemployment rate at year’s end — and no interest rate increases through 2022. In the first economic …
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The dollar dropped to a three-month low on Wednesday as speculation increased that the Federal Reserve will announce later in the session it intends to keep the recent rise in bond yields in check. Concern about possible measures or even a simple statement of intent by the Fed to hold down the yields of US …
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The Great Crash of 2020 was not caused by a virus. It was precipitated by the virus, and made worse by the crazed decisions of governments around the world to shut down business and travel. But it was caused by economic fragility. The supposed greatest economy in US history actually was a walking sick man, …
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US stocks tumbled Tuesday after a six-day rally that had briefly left the S&P 500 index in positive territory for the year. The Dow Jones industrial average dropped as much as 421.38, or 1.5 percent, to 27,151.06 by midday, as doubts resurfaced about the US economy’s ability to recover from the coronavirus crisis. The blue-chip …
Between the federal government and the Federal Reserve, about $10 trillion has been pumped into the US economy to prevent a pandemic-fueled economic collapse. Judging by the stock market, you would think we’ve sidestepped a 2008-size disaster. But stocks, at least in the short run, are rarely a good indication of what’s festering inside the …
