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September 27, 2012
As the Federal Reserve begins another round of money-printing disguised as monetary policy (Quantitive Easing, Round Number 3), it is instructive to review the congressional scorecard of those congressmen who continue to give the Fed this power. Congressman Elijah Cummings and John Sarbanes both voted against the "Audit the Fed" bill passed by the House in July. Both men, particularly Elijah Cummings, represent people who will be profoundly harmed by the inflation that inevitably occurs after reckless monetary policy.
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September 27, 2012
As the Federal Reserve begins another round of money-printing disguised as monetary policy (Quantitive Easing, Round Number 3), it is instructive to review the congressional scorecard of those congressmen who continue to give the Fed this power. Congressman Elijah Cummings and John Sarbanes both voted against the "Audit the Fed" bill passed by the House in July. Both men, particularly Elijah Cummings, represent people who will be profoundly harmed by the inflation that inevitably occurs after reckless monetary policy.
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NEWS
February 22, 1996
PRESIDENT CLINTON owes more to Alan Greenspan than to any other Republican, inside or outside the Washington Beltway. Thus it is only right that he should appoint the Federal Reserve Board chairman to another term and only fair that the Republican-controlled Congress should let the president name at least one new board member responsive to traditional Democratic economic ideas.As Mr. Clinton braces for his re-election campaign, the U.S. economy is basically "on track" (in Mr. Greenspan's phrase)
NEWS
By Peter Morici | June 13, 2012
The U.S. economy is drifting toward recession, but when Federal Reserve policymakers meet next week, they will have few options. Jobs creation slipped alarmingly in April and May. Wages, which were rising modestly through the recovery, have been virtually flat for three months. An already tough labor market is getting worse. Worker productivity is down, indicating businesses have more employees than needed to meet demand, and layoffs will follow if sales don't pick up. Deteriorating conditions in Europe, and a weaker euro and Chinese yuan, indicate U.S. exporters and import-competing businesses face a tougher environment this summer.
BUSINESS
By BLOOMBERG NEWS | July 29, 1999
WASHINGTON -- Federal Reserve policy-makers might raise interest rates again because the U.S. economy could be growing too quickly, raising the risk that inflation is likely to accelerate, Fed Chairman Alan Greenspan told the Senate Banking Committee yesterday in the second of his semiannual reports on the economy and monetary policy.Greenspan, however, offered little elaboration on his warning -- identical to one he gave the House Banking Committee last week -- because senators were more interested in dragging the central bank head into an argument over tax policy.
NEWS
By Peter Morici | June 13, 2012
The U.S. economy is drifting toward recession, but when Federal Reserve policymakers meet next week, they will have few options. Jobs creation slipped alarmingly in April and May. Wages, which were rising modestly through the recovery, have been virtually flat for three months. An already tough labor market is getting worse. Worker productivity is down, indicating businesses have more employees than needed to meet demand, and layoffs will follow if sales don't pick up. Deteriorating conditions in Europe, and a weaker euro and Chinese yuan, indicate U.S. exporters and import-competing businesses face a tougher environment this summer.
BUSINESS
By New York Times | December 9, 1991
NEW YORK -- Many analysts expect the Federal Reserve Board to follow its move last Friday easing monetary policy with additional moves in a few weeks to bring down the prime rate, now at 7.5 percent.It would put more downward pressure on long-term interest rates, including home mortgages.But after 30 months of watching the Fed push down short-term rates, investors and economists are becoming more convinced that lower rates alone cannot quickly put the economy on track.True, the Fed's rate reductions are probably preventing a more severe economic downturn.
BUSINESS
By Gilbert A. Lewthwaite and Gilbert A. Lewthwaite,Washington Bureau | April 2, 1993
WASHINGTON -- With the economic recovery only sputtering along, the congressional Joint Economic Committee called on the Federal Reserve yesterday to "cooperate" with the Clinton deficit-reduction plan by keeping interests rates low.Fearful that the proposed $496 billion in tax increases and spending cuts over the next five years could hamper growth, the committee said in its annual report on the economy that "the primary responsibility for ensuring an...
NEWS
March 26, 1997
FEDERAL RESERVE chairman Alan Greenspan's reputation as a skilled manager of monetary policy is such that Wall Street would have been disappointed had he not raised short-term interest rates by a modest quarter-percent yesterday.He had prepped the markets for such a pre-emptive strike against future inflation beginning with his December admonition against "irrational exuberance" on the part of investors and his warning that soaring share prices could be a factor in overheating the economy.
NEWS
September 19, 1994
Hard on the heels of academic warnings that inflationary pressures in the economy are sharper than generally perceived, financial markets are shaky in anticipation of still more boosts in interest rates before the end of the year. These developments come at an awkward time for the Federal Reserve Board, where philosophical differences between chairman Alan Greenspan and vice chairman Alan Blinder are beginning to surface.Mr. Greenspan, the ultimate inflation hawk, has even urged a change in the law to make inflation control the sole mission of the nation's central bank.
NEWS
By Matthew Hay Brown, The Baltimore Sun | April 20, 2012
A former midshipman who says she was raped twice while at the Naval Academy has filed a federal lawsuit seeking to force officials to improve their response to sexual assaults at the service academies. In a complaint filed Friday, the woman, now 22, says she was raped on separate occasions by two different midshipmen. After she reported the assaults to an academy counselor, she says, the academy forced her to drop out. The woman and a co-plaintiff, a former U.S. Military Academy cadet who says she was raped by a fellow student there, say officials at the two academies tolerate sexual assault and discourage victims of attacks from reporting them.
NEWS
By Steven L. Schwarcz | September 17, 2007
Federal Reserve Chairman Ben S. Bernanke rightly believes that "it is not the responsibility of the Federal Reserve - nor would it be appropriate - to protect lenders and investors from the consequences of their financial decisions." The Fed should, however, take reasonable precautions against economic shocks that can seriously damage the economy. When the Federal Reserve meets again tomorrow, it is likely to announce another interest rate cut to mitigate the subprime mortgage crisis.
BUSINESS
By William Neikirk and William Neikirk,Chicago Tribune | August 8, 2007
WASHINGTON -- The ever-cautious Federal Reserve resisted Wall Street pressures yesterday and decided to keep interest rates steady despite concerns over a possible credit crunch that could sink the economy. About the only consolation for financial markets was the fact that the central bank at least mentioned these concerns in a statement after its meeting. That acknowledgment gave Wall Street faint hopes of an interest-rate cut later this year if credit conditions continue to deteriorate.
BUSINESS
By Bloomberg News | January 18, 2007
WASHINGTON -- Vincent Reinhart, one of Federal Reserve Chairman Ben S. Bernanke's top advisers on interest rates, plans to leave the central bank, people familiar with the decision said. The departure leaves a vacancy at the head of the division that crafts the Fed's policy options at a time when Bernanke is trying to slow inflation without damaging growth. Reinhart helps draft the statements after meetings of the Federal Open Market Committee. Reinhart, 49, plans to join the American Enterprise Institute, a Washington-based think tank, the people said on condition of anonymity.
BUSINESS
By Lisa Girion and Lisa Girion,Los Angeles Times | October 10, 2006
A Columbia University economist was awarded the Nobel Prize in economics yesterday - worth $1.37 million - for his paradigm-shifting work showing that reducing inflation wouldn't necessarily lead to higher unemployment - a key tenet of Federal Reserve policy since the 1980s. Edmund S. Phelps, 73, was honored for his challenge to a post-World War II notion that low inflation and low unemployment couldn't exist simultaneously. That notion was embodied in the so-called Phillips curve. Phelps, however, theorized in the 1960s that the drivers of inflation go beyond the level of employment and wages.
BUSINESS
By BLOOMBERG NEWS | May 19, 2006
NORFOLK, Va. -- The Federal Reserve is less likely to suspend its interest-rate increases after recent reports showed rising inflation, the president of the Federal Reserve Bank of Richmond, Va., said yesterday. "The inflation outlook is at the borderline of acceptable and perhaps moving beyond," Jeffrey M. Lacker told reporters. "Unfavorable inflation numbers and adverse movements in inflation expectations are going to require a higher path for real interest rates, and are going to make a pause less likely," Lacker said.
BUSINESS
By Bloomberg News | January 18, 2007
WASHINGTON -- Vincent Reinhart, one of Federal Reserve Chairman Ben S. Bernanke's top advisers on interest rates, plans to leave the central bank, people familiar with the decision said. The departure leaves a vacancy at the head of the division that crafts the Fed's policy options at a time when Bernanke is trying to slow inflation without damaging growth. Reinhart helps draft the statements after meetings of the Federal Open Market Committee. Reinhart, 49, plans to join the American Enterprise Institute, a Washington-based think tank, the people said on condition of anonymity.
BUSINESS
By WILLIAM NEIKIRK and WILLIAM NEIKIRK,CHICAGO TRIBUNE | November 16, 2005
WASHINGTON -- Federal Reserve Chairman Alan Greenspan used personal intuition and wide flexibility to set U.S. interest rates over the past 18 years. And Ben Bernanke, the man chosen to replace him, vowed at his confirmation hearings yesterday to continue Greenspan's policies if he takes over as expected in January. Economists said the differences between the two men will become apparent and will make monetary policy more mechanical than it has been under the 79-year-old Greenspan, who achieved star status as a leading U.S. and world economic figure.
BUSINESS
By Jay Hancock | October 13, 2004
THE economists who won a Nobel prize Monday did what economists often do: state the blindingly obvious in the form of algebra. Finn E. Kydland and Edward C. Prescott argued that -- this is the English version -- the best solution to today's problems might not be the best solution tomorrow, but that frequent policy fiddling to reap short-term benefits can cause its own problems. You or I, pointing this out to our spouse at dinner, will get, "Sure, hon. Pass the sprouts." Kydland and Prescott got the Bank of Sweden Prize in Economics in Memory of Alfred Nobel, as it is officially known, plus $1.3 million to share.
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