This week Federal Reserve Chairman Ben Bernanke will go in front of reporters for his first-ever press conference. He will take questions about policy inflation and the Fed's bond-buying program in an effort to promote transparency between the Fed and the American public. What should Bernanke say to develop Americans' trust? Christina Romer, professor of Economics at University of California, Berkeley, and former chairwoman of President Obama's Council of Economic Advisers says she'd like the truth.
Despite promises of reform from both the Syrian and Yemeni governments, demonstrations — and serious bloodshed — rage in both countries. NATO continues to support the rebels in Libya while some U.S. Senators call for Gadhafi's ouster. Marcus Mabry, editor-at-large of the International Herald Tribune, looks at protests throughout the Middle East and NATO's role in Libya. Middle East turmoil has also led to rising oil and gas prices in the U.S. Oil companies are set to release their earnings this week and Charlie Herman, economics editor for The Takeaway and WNYC, looks at rising oil profits and potential price gouging investigations.
Egypt will likely dominate the headlines all week, with everyone waiting to see if President Hosni Mubarak will cede to the wishes of the protesters and step down. Calli Crossley, host of The Callie Crossley Show on WGBH in Boston, looks at what's ahead this week for the people of Egypt and its government. Charlie Herman, economics editor for The Takeaway and WNYC in New York, looks at the potential impact the uprising in Egypt could have on the price of oil, and on how it could impact trade on the Suez Canal.
Last week, New York Times Wall Street and finance reporter Louise Story explained how the Federal Reserve's new economic recovery plan, known as "quantitative easing," works. Story explained that the process is intended to effectively lower already-low interest rates, making it cheaper for banks to borrow money. But how will this impact ordinary, middle-class Americans?
Many Americans are angry about the sluggish state of the economy. On Tuesday, they went to the polls and took their anger out on elected officials. But the people who have a very large effect on the American economy aren't elected at all. They’re the appointed officials at the Federal Reserve Bank, headed by Ben Bernanke. As if to underscore that point, The Fed announced Wednesday that they’ll buy $600 billion worth of Treasury bonds, in an effort to stimulate economic growth.
The Federal Reserve Bank announced Wednesday that it will once again make a large purchase of Treasury Bonds — $600 billlion worth — as part of a Quantitative Easing to help the struggling economy. The response of many to this news: "Quantitative what?" Louise Story, Wall Street and Finance Reporter for our partner The New York Times, joins the show to break it down.
When Fed Chair Ben Bernanke called the economic outlook "unusually uncertain" on Wednesday, markets reacted by taking a dive. When Bernanke returned to the House Financial Services Committee on Thursday, he amended his previous statement and said that the Federal Reserve was open to assisting the economy if necessary. This helped the stock market rally after the previous day's dip.
President Obama made it official yesterday: the financial overhaul bill has been signed into law. So who are the winners as this new law takes effect? Takeaway contributor Beth Kobliner believes the consumer is the real winner in financial reform, with new rules about mortgages, credit cards and student loans. However, she reminds us that car dealers are not included in the law, so it's important to stay vigilant.
Federal Reserve Chairman Ben Bernanke had troubling words when he testified before the House Budget Committee on Wednesday. In describing the state of the economy, Bernanke said that the nation’s budget “appears to be on an unsustainable path.” The New York Times’ Wall Street and finance reporter Louise Story, explains that the chairman’s critique is a serious matter, and discusses the possible further economic pitfalls that lie ahead.