Federal Reserve System

How Supply and Demand Really Did Drive the Oil Boom
October 15, 2009

I've highlighted a couple recent papers investigating the causes of the commodity price boom, pre-crisis.

Worth Reading
October 14, 2009

Fed minutes show FOMC considered increasing purchases of mortgage securities. Calvin Trillin on super smart Wall St. workers and their dim bosses. What Obama did in his first 12 days to earn a Nobel nomination. Older workers are more likely to declare bankruptcy. How naming your baby is like momentum trading. Correlation of the day: A person's income and believing U.S. healthcare is #1. And the Dow finally clears 10,000 again.

The Network
October 09, 2009

The shock of the financial meltdown has had congressional committees scrambling for their gavels for the better part of a year. Politicians have been discussing how to make sure that such a near-cataclysm never happens again, and, for the most part, they've focused on the need for new regulation.

Worth Reading
October 08, 2009

The Fed's inflation-fighting credibility is rock-solid. But you can't say the same for America's strong-dollar policy. Is FHA headed the way of Fannie and Freddie? High frequency trading and the revival of technical analysis. The real value of Twitter.

Worth Reading
October 07, 2009

Study: Calorie posting in NYC restaurants hasn't changed behaviors. Krugman: Why does the Fed insist on reviving shadow banking? Bill Clinton: Bush should have rescued Lehman. Does a tax credit for boosting employment make sense? More signs of a thaw: Sales at eBay rose in Aug. and Sept.

A Question the Fed Needs to Answer Regarding Goldman Sachs
October 03, 2009

At the height of the financial panic last fall Goldman Sachs became a bank holding company, which enabled it to borrow directly from the Federal Reserve. It also became subject to supervision by the Federal Reserve Board (with the NY Fed on point)--hence the brouhaha over Steven Friedman’s shareholdings. Goldman is also currently engaged in private equity investments in nonfinancial firms around the world, as seen for example in its recent deal with Geely Automotive Holdings in China (People’s Daily; CNBC). U.S.

Is Bernanke Making the Wrong Concession?
October 01, 2009

As I've said before, I admire the Fed chairman's political touch, which he demonstrated again today by making a key concession to Fed critics and skeptics: Apparently Bernanke is now willing to share power for keeping an eye on systemic risk with a council of regulators. It's the kind of thing people like FDIC chairman Sheila Bair have proposed, so that the Fed doesn't end up cornering the market on financial regulatory authority. I just wonder if this is the right concession to make. For one thing, I'm not entirely sure how a council of regulators is supposed to work.

The Looming Deficit Disaster, Modeled
September 30, 2009

Yale's Ray Fair, well-known for his economic model predicting the outcome of presidential elections, has a new forecast out on the macroeconomic effects of large budget deficits -- and it's not pretty: A depreciation of the dollar leads to inflation, as expected, but this is of only modest help regarding the debt problem. It does not appear that the United States can inflate away its debt problem. The picture is worse regarding output if there is a flight from U.S. stocks as well as the dollar. Personal income tax increases and transfer payment decreases have similar effects on the economy.

Right Said Fed
September 25, 2009

Of all the exhibits at the Congressional Black Caucus’s annual conference, which started Wednesday and will run into the weekend, the one I least expected was tucked in the back corner, behind rows of booths hawking Coca Cola and wood carvings, silk suits and ornate hats, and a cornucopia of Obama kitsch. The booth promoted the Federal Reserve. When I first saw it, I thought it might be a part of Ben Bernanke’s recent charm offensive, an effort to demystify the central bank and ease fears about its reach into the financial markets over the past year.

Is Barney Frank Weakening the Consumer Financial Agency?
September 23, 2009

The short answer, per this Journal piece, is yes.