Fed’s Rosengren Says Housing Still Adding “Significant Uncertainty” to Economy
Friday, May 30th, 2008 The sharpest drop in housing prices in 50 years
poses a “significant” risk to the U.S. economy, but the Fed’s rate cuts
should be felt in the second half of the year, according to one Fed
official on Friday.
Boston Fed President Eric Rosengren said the U.S.
housing market is a small part of GDP but the slump, the effects of which
are widespread, may last longer than anticipated.
Rosengren said it is important for servicers to help economic growth
by making loan modifications where appropriate…
U.S. Personal Spending Report Allows Fed to Pause Rate Cuts, Economists Say
Friday, May 30th, 2008Inflation remains contained and personal spending
continued improving according to the latest report from the U.S. Commerce
Department on Friday. Economists said the Fed will be pleased to see that
consumers are holding in there despite weakness in the broader economy,
though in real terms the 0.2% gain in personal spending was flat.
Fixed income strategist T.J. Marta from RBC Capital Markets said the
big picture is that there is “no resolution to the conflicting problems
confronting a dual-mandated Fed…
Fed’s Kohn Says Financial Regulations Should Be Strengthened
Friday, May 30th, 2008Speaking on ‘Money Markets and Financial Stability’ at the New York
Fed’s conference on money markets on Thursday night, Fed Vice-Chairman
Donald Kohn (voter) said it was unclear how much
strengthening of the U.S. financial regulatory system was needed, but
that the need for reforms was evident.
“As I noted at the outset,
one important lesson from recent developments is that we need to devote
greater attention to money markets…
Friday’s Events: Core PCE, Chicago PMI
Friday, May 30th, 2008Canadian Q1 and March GDP and core PCE in the U.S. will dominate the
economic news of the day as markets prepare for the final trading day of
May. In addition to comments from the Fed and Canadian finance ministers,
markets will also be paying attention to European Central Bankers on
Friday.
At 8:30 a.m. EDT, the U.S. Commerce Department will release its
personal income and spending report for April. Economists are expecting
personal spending to rise 0.2% month-over-month after picking up 0.4% in
the previous month.
At 9:45 a.m. EDT, markets will receive the Chicago Purchasing
Managers’ Index for May, which is expected to…
Fed to Conclude Bear Stearns and JPMorgan Arrangements by June 26
Thursday, May 29th, 2008On Thursday morning, the Federal Reserve Bank of New York announced
its intentions to conclude arrangements for the financing of
JPMorgan’s acquisition of Bear Stearns by June 26 and
finish valuating the investment bank’s portfolio.
“The New York Fed, in coordination with JPMorgan Chase, is working
carefully and expeditiously to…
Dallas Fed’s Fisher Expects Rate Hike Despite Slowing Growth
Thursday, May 29th, 2008Speaking in San Francisco on Thursday, Dallas Fed President Richard
Fisher said he expects “a change of course in monetary
policy to occur sooner rather than later, even in the face of an
anemic economic scenario.”
“I would expect a change of course in monetary policy to occur sooner
rather than later, even in the face of…
Thursday’s Events: U.S. Q1 Prelim GDP, Jobless Claims, Top FOMC-Speak
Thursday, May 29th, 2008Preliminary U.S. GDP, jobless claims and comments from the Fed’s Ben
Bernanke, Donald Kohn and Timothy Geithner will highlight the North
American economic releases along with weekly oil inventories from the
Department of Energy and the first-quarter current account balance from
Canada.
When should I refinance my Minnesota mortgage?
Thursday, May 29th, 2008If you weren’t able to refinance your Minnesota mortgage in the past few years, fear not as mo
Fed’s Stern Says Inflation Expectations Based on How Fed Raises Rates
Wednesday, May 28th, 2008Minneapolis Fed President Gary Stern said on Wednesday that
inflation expectations will be determined by how the
Federal Reserve raises rates.
On housing, Stern said the housing downturn looks
more severe than the 1990s shock, noting that the residential housing
inventory remains large and the housing adjustment is ongoing…
Fed Governor Mishkin Resigns Post
Wednesday, May 28th, 2008Federal Governor Frederic S. Mishkin submitted his
resignation today to President George W. Bush. Mishkin will be
leaving his post on Aug. 31, 2008.
Mishkin has been a member of the board since Sept. 5, 2006. Mishkin’s
term was set to expire on Jan. 13, 2014.
Mishkin has said that he will be…
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