Two major announcements hit Wall Street and Washington on Wednesday. The Federal Reserve unveiled its plan to invest $400 billion in Treasury securities in an effort to boost the economy, and Moody's downgraded the ratings of Bank of America, Citigroup, and Wells Fargo. How is all of this going to affect consumers and businesses? And how is divided Washington going to react?
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.
Later this week, world leaders will gather at the G20 summit in Seoul, South Korea. The meeting comes just days after the Federal Reserve's decision to buy $600 billion worth of Treasury bonds through a process known as "quantitative easing." In response to the announcement, American stock markets reacted positively. World leaders abroad did not.
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.
I just spoke with a hopeful banker on the show and it really brightened my day. Hartie Spence is the President and CEO of Lakeside Bank in Louisiana. That may sound a little more impressive than the reality of Mr. Spence’s new gig, but then most banks have tortured metaphorical names like “First Federal Mutual Providential Acceptance Savings Bank and Trust Company,” designed to reassure people about the safety of their money.
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.
The Obama administration plans to cut executives' pay at companies that received taxpayer money as part of the financial bailout. Meanwhile, the Federal Reserve says it will monitor bank pay packages in the hopes of deterring payouts that reward overly-risky behavior. For a look at what this means for recruiters we're joined by Joe Nocera, business columnist for The New York Times.
The Federal Reserve meets today against an improving economic backdrop. For once, inflation and interest rates are not the news of the day. Louise Story, finance reporter for our partner The New York Times, looks at what else the Fed is acting on right now.
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