Fed sycophants argue that an audit would destroy the financial markets' faith in the Fed.
He didn't think the Fed could deliver full employment.
The TARP will absorb the first $20 billion of losses; the Fed will lend the rest.
Approaching the New Changes of the Fed Discount Policy From the Avoidance of Financial Risks;
Through instruments such as open-market operations, the Fed directly controls the quantity of money supplied.
This is a very interesting time because the Fed is continuing to invent.
The inflationary virus of the 1970s had been felled by the Fed by the spring of 1982.
The Fed failed to identify the twin bubbles of the last decade — in the stock market and in real estate — and we have to hope that the Fed and its global counterparts will do better in the future.
Untethered from the goldstandard and the Bretton Woods system, and insufficiently accountable toCongress, the Fed creates money by fiat.
A tumbling currency would prevent the Fed from cutting interest rates, deepening and spreading the economic pain.
This is January of this year, before the Fed cut interest rates, and this is the term structure.
It could then expand its balance-sheet indefinitely without driving the fed funds rate to zero; a bank will not lend out excess reserves at 0.25% if it can earn 1.75% at the Fed.
By buying Treasury securities, the Fed aims to lower long-term interest rates and increase expectations of future inflation.
Right now, the Fed is delaying the day of reckoning and, in the process, exporting the US's problems by adopting policies that, intentionally or not, weaken the dollar.
Others worry not that the Fed will prolong the slump but that it may sow the seeds of the next crisis.
But by the time the Fed lowered rates again at the end of that month, its move was seen by investors as a sign of desperation.
Nor should the Fed be now.
For now, it seems the Fed is sitting idle.
The more the Fed cuts, the bigger the risk of inflation in emerging markets.
In the 1970s and 1980s Congressmen regularly threatened to impeach the Fed chairman.
Private forecasters believe the Fed should sit tight, according to a new Wall Street Journal survey.
The gap between the Fed and the rest is having its plainest effects in the currency markets.
The problem is that if the Fed has the power to counterfeit, it will inevitably use that power.
Because the Fed can pretty much dictate to the Banks right now, what additional powers would nationalization bring?
The Fed also plans to use reverse repurchase agreements to reduce excess liquidity. In a reverse repo, the Fed lends securities for a set period, draining cash from the banking system.
If the Fed is to receive this expanded macroprudential role, it should be stripped of its microprudential duties.
"Then do we take the pain, or do we go with the nuclear option of increasing the balance sheets of the ECB and the Fed," Laggner asks.
The second puzzle happened last week when the Fed reported on the methods used by bank examiners for the stress tests.
Some think the Fed may act sooner.
The Fed already has such a bureau; it is ineffectual because the Fed CARES about the solvency of Banks, not the solvency of their customers.
The cost to the system-a measly $600 billion injection of Funds by the Fed.
However, “firms ability to pass along cost increases by raising selling prices varied,” the Fed said.
The unsaid is that the Fed does not talk about the dollar, leaving that to the US Treasury.
That's a trivial change, basically the least the Fed could get away with without facing a firestorm of criticism - and far short of the major asset-purchase program the Fed should be undertaking.
This secrecy by the Fed in its appropriations of taxpayer money and the most-likely worthless collateral it exchanged it for represents inflationary risks the Fed is attempting to conceal.
If the Fed went further and started to buy illiquid assets outright, as some are advocating, that would be different.
Unless financial markets or growth prospects take a further turn for the worse, the Fed and the Bank will need to do the same before long.
They could also borrow from the Fed.
Soft loans from the Fed were designed to tempt investors into buying securities; the Treasury promised to take the first tranche of any losses, thus protecting the Fed.
If, for instance, the banking system were indeed in danger, then the Fed should step in.
He believes the recent actions of the Fed, the European Central Bank and the Bank of England endorse his view.
Once prices return to a favorable level, the Fed begins to reduce rates again and the boom bust cycle repeats.
I believe that when we finally finish it all, the Fed would end up with more power, not less.
The President will propose the creation of a council of regulators, but the Fed will not need to seek the council's approval to act against systemic risks.
Inside the Fed, the pressure is also for tighter policy.
That has the Obama administration and the Fed on the defensive.
How Do Central Banks Deal with Systematic Financial Risk:Experiences and References from the Fed
Indeed, even though bond yields have risen, the Fed probably regards the latest round of QE as a success.
Alan Greenspan, a former Fed chairman, says inflation will exceed 10% if the Fed fails to shrink its balance-sheet and raise rates, and 3% for a time even if it does.
In fact, the inspector general who has the responsibility for overseeing the Fed told congress that she does not have this information.
Wall Street, the Fed, and Newport Beach took the other side.
Through curtailing supply and boosting demand, the Fed wants to stabilize the property price and the economy.
To see what I'm talking about, let's ask what policies the Fed actually should be pursuing right now.
And the cynics believe the Fed is at it again.
真正的棄俗並不是反對這個世界，並不反對肉體，這和肉體一點關係也沒有，它純粹是意識的覺醒。你變成無選擇的，不再執迷於任何事物，在那個無所執迷，無所選擇的意識狀態下，聰明睿智於焉升起。
I do expect the Fed to do its job, and right now it looks like the Fed is saying it has no responsibility for meeting its nominal goals. That's not acceptable.
When velocity swings widely, the Fed shouldn't be passive.
The Federal Reserve is independent, but Congress and the White House have ways to pressure the Fed.
Again, the Fed responded by rushing money to banks, this time via a new arrangement called the Term Auction Facility. Again the markets calmed down, for a while.
In the past, I myself have argued that the Fed chairman has a responsibility to say when he thinks more of a stimulative boost is required than the Fed alone can handle.
As shown above, the interest rate the Fed would like to have is negative.
He himself advocated the policies the Fed followed, and in fact, was critical of the Fed raising rates even when it belatedly did so in 2004.
Yet a revaluation would not address the problem of policy inflexibility; the GCC would still be yoked to the Fed.
At the same time, the (expected) lack of additional easing by the Fed and the need to begin to reduce its balance sheet will also decrease investor demand.
Under the law, the Fed has the authority to lend to any nonbank, but only if the loan is "secured to the satisfaction of the Federal Reserve bank."
