FOMC chair Janet Yellen revealed at a mid-July House Financial Services Committee hearing that rates would be raised upon improving economic conditions at no particular time.
Read More »St. Louis Fed Casts Doubt on the Effectiveness of QE and Zero Interest Rate Policy
In a recently released white paper analyzing actions taken by the Federal Reserve in the immediate aftermath of the 2008 financial crisis, St. Louis Fed VP Stephen D. Williamson questions a few of the central bank's policies and the effect they have had on the economy.
Read More »Income Expectations Hold Steady, but Outlook for Spending Drops Substantially
Meanwhile, median home price inflation expectations fell from 3.5 percent in June to 3.2 percent in July, continuing a downward trend. It is the second lowest monthly total for the SCE since it began in June 2013.
Read More »Will Recent Job Gains Be Enough to Convince the Fed to Raise Rates in September?
Also of note, job gains for May and June were revised upward for a combined total of 14,000 more jobs than were originally reported, according to the BLS. Smoke said the job growth in the last year, which has been consistently strong in the last nine months, has been a key reason for stronger housing demand this year.
Read More »House Committee Passes 14 Bills, Including Regulatory Relief and Fed Reform
Among the bills that passed in the Committee were H.R. 2243, the Equity in Government Compensation Act of 2015, which was introduced in May by Ed Royce (R-California). The bill passed by a vote of 57-1.
Read More »Fed Determines More Labor Market Growth Is Needed In Order to Raise Rates
The Committee also determined that labor market indicators found that underutilization of labor resources have diminished slightly, and growth in household spending has been moderate, while the housing sector showed some improvement. However, business fixed investment and net export remained soft.
Read More »Fed Rules Eight Banks to be Held to Minimum Capital Holdings or Surcharges
The nation’s top eight banks will be held to minimum capital holdings or face stiff surcharges, according to a decision made by the Federal Reserve on Monday. The ruling establishes minimum holdings among what the Fed dubs “global systemically important banks,” or GSIBs, the firms with the most risk-based endeavors.
Read More »Fed Likely to Raise Rates By Year’s End If ‘Economy Evolves’ As Expected
In both hearings, Yellen addressed the subject of the much-anticipated federal funds range increase; Thursday before the Senate Banking Committee, she reiterated that more economic improvement, particularly in the labor market, is needed along with confidence that the objective of 2 percent inflation can be met over the medium term. She said the Federal Open Market Committee (FOMC) would determine on a meeting-by-meeting basis if progress toward that goal is sufficient enough to raise the rates.
Read More »Economic Activity Expands and Home Sales Increase In Most Fed Districts
"Almost all of our contacts noted a seasonal increase in their residential mortgage business, which was heavily weighted toward new-home purchases," the Fed wrote. "The rapid rise in rental rates was cited as a motivating factor to purchase homes. Little change was reported in delinquencies (already at low levels) and loan-application standards."
Read More »House Subcommittee Examines Fed’s Transparency and Accountability
One of the key takeaways from the hearing, according to the Subcommittee, is that the Fed's newly granted powers under Dodd-Frank call into question whether or not the central bank's accountability to Congress, the Judicial System, and the American people.
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