Tag: Federal Reserve System

Oversight Member Blasts the Fed’s Efforts to Rescue Main Street

WASHINGTON — The Federal Reserve’s first-ever attempt to lend money to midsize businesses was destined to be a challenge. The push has proved to be an outright flop, according to a member of the oversight commission charged with monitoring it. “By any measure, the Main Street program has been a failure,” Bharat Ramamurti, a member […]

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How Pimco’s Cayman-Based Hedge Fund Can Profit From the Fed’s Rescue

WASHINGTON — Pacific Investment Management Company runs a hedge fund registered in the Cayman Islands, a common structure for avoiding certain U.S. taxes. But when a profit opportunity arose from the ashes of America’s coronavirus crisis, that international location did not stop it from seizing the moment. The Federal Reserve opened a highly anticipated emergency […]

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Federal Reserve Leaves Rates Near Zero as Economic Recovery Sputters

WASHINGTON — The Federal Reserve left interest rates near zero on Wednesday and Jerome H. Powell, the Fed chair, predicted a long road ahead as a recent spike in virus cases saps momentum from the nascent economic recovery. “The path forward for the economy is extraordinarily uncertain and will depend in large part on our […]

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New Gold Rush Pushes Price to Record Highs

Something shiny and bright is beckoning investors accustomed to the gloomy days of 2020: gold. In recent days, gold prices have hit record highs. For the year, gold is up 27 percent, a performance that puts it ahead of most stock, bond and commodity markets. On Monday, the price of gold futures on the New […]

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A Hedge Fund Bailout Highlights How Regulators Ignored Big Risks

WASHINGTON — As the coronavirus began shuttering the global economy in March, critical parts of U.S. financial markets edged toward collapse. The shock was huge and unexpected, but the vulnerabilities were well known, the legacy of risk-taking outside of regulatory reach. To head off a devastating downward spiral, the Federal Reserve came to Wall Street’s […]

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Save the Fed

Having failed in past attempts to put unqualified ideologues on the Federal Reserve Board, President Trump is giving it another try — and is closer to victory than previously. The nominee in question — Judy Shelton, known for taking long-discredited positions on the monetary system — makes Mr. Trump’s earlier rejected choices seem almost conventional. […]

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Shelton Clears Senate Committee, Moving Trump’s Pick Closer to Fed Board

WASHINGTON — Judy Shelton, an unorthodox economist with close ties to the Trump White House, cleared the Senate Banking Committee on Tuesday in a vote that split along party lines, putting her one Senate floor vote away from a seat on the Federal Reserve Board. Ms. Shelton moved forward along with Christopher Waller, who is […]

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Climate Change Poses ‘Systemic Threat’ to the Economy, Big Investors Warn

WASHINGTON — Climate change threatens to create turmoil in the financial markets, and the Federal Reserve and other regulators must act to avoid an economic disaster, according to a letter sent on Tuesday by a group of large investors. “The climate crisis poses a systemic threat to financial markets and the real economy, with significant […]

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Businesses Are Supposed to Cut Debt in a Downturn. Why Not Now?

Since the 2008 global financial crisis, American corporations have taken advantage of historically low interest rates to gorge themselves on debt. Then came the pandemic and the sharpest economic downturn in history, which resulted in an odd solution for the companies that did all that borrowing: more debt. Through late June, giant U.S. companies had […]

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Trump’s Hot-Button Fed Pick Faces Senate Committee Vote This Week

WASHINGTON — Judy Shelton, an unorthodox economist who was an adviser to President Trump’s 2016 campaign, could move one step closer to a seat on the Federal Reserve’s Board of Governors this week. While her fate is far from guaranteed, the Senate Banking Committee is expected to approve Ms. Shelton’s nomination on Tuesday, putting her […]

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Mortgage Rates Drop Below 3% for First Time, Tempting Home Buyers

Home loans have never been cheaper, if you can find a willing lender. The average rate on 30-year fixed mortgages has fallen below 3 percent for the first time, as the Federal Reserve’s recent efforts to pump trillions of dollars into financial markets to support the economy during the pandemic translate into lower consumer borrowing […]

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