Fed Pumps Another $50 billion Into Banking System

Fed Pumps Another $50 billion Into Banking System

April 8, 2008, 8:26 am
Filed under: Alan Greenspan, bernanke, Big Banks, BOE, carlyle group, central bank, Credit Crisis, DEBT, Economic Collapse, economic depression, Economy, Federal Reserve, Great Depression, Greenback, henry paulson, imf, Inflation, interest rate cut, interest rate cuts, job market, Karl Rove, Paulson, rate cut, Stock Market, Uncategorized, US Economy, Wall Street

Fed Pumps Another $50 billion Into Banking System

AP
April 8, 2008

The Federal Reserve, still working to combat the effects of a severe credit squeeze, said Tuesday that it had auctioned another $50 billion to cash-strapped banks.

Separately, some Fed officials said they were concerned about a “prolonged and severe” economic downturn when they cut interest rates last month.

The Fed auction marked the ninth in a series that began in December that so far have pumped $310 billion in short-term loans into the nation’s banking system.

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Bernanke: “Recession Is Possible”

Reuters
April 4, 2008

For the second time this week, a senior Federal Reserve official conceded the United States economy could slip into recession, but suggested the central bank should wait to see if more rate cuts are needed.

“The economy has all but stalled and could contract over the first half of the year,” San Francisco Federal Reserve President Janet Yellen, who is not a voter on the policy-setting committee in 2008, said on Thursday.

“Current indicators suggest that, starting in the fourth quarter, the economy, at best, slowed to a crawl,” she said, adding later that the Fed is still battling a “negative feedback loop” of tight credit conditions, falling house prices and low consumer confidence.

Yellen’s remarks, in a speech to the Stanford Institute for Economic Policy Research, echoed those from Fed Chairman Ben Bernanke during testimony to a Congressional Joint Economic Committee on Wednesday.

“Recession is possible,” Bernanke said. “There’s a chance that for the first half as a whole, there might be a slight contraction.”

But, like Bernanke, Yellen declined to point the way toward additional interest rate cuts to pull the economy out of its malaise.

Instead, she forecast a minor pickup in growth in the second half on the back of rate cuts already in the pipeline, and “timely” fiscal stimulus checks — even though the drag from falling house prices will linger into 2009.

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Fed rate cut plans up on weak jobs

Ros Krasny
Reuters
April 4, 2008

U.S. short-term interest rate futures rose on Friday on news that U.S. firms cut payrolls for a third consecutive month, as dealers raised bets that the Federal Reserve will make an aggressive interest rate cut this month and beyond.

The implied prospects for the Fed to cut its benchmark lending rate by 50 basis points at the April 29-30 policy meeting hit 40 percent against 20 percent late on Thursday.

A smaller, 25 basis point rate cut from the Federal Open Market Committee, which would take the fed funds rate to 2 percent, is fully priced.

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More than 50 percent chance of U.S. recession: Greenspan

Sonya Dowsett
Reuters
April 6, 2008

There is more than a 50 percent chance the United States could go into recession, former Federal Reserve chairman Alan Greenspan told El Pais newspaper in an interview published on Sunday.

However, the U.S. has not yet entered recessionary state marked by sharp falls in orders, strong rises in unemployment and intensive weakening of the economy, he said.

“We would have to see signs of this intensification: there are some, but not many yet,” he said. “Therefore … I would not describe the situation we are in as a recession, although the chances that we’ll have one are more than 50 percent.”

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Recent News:

Wall Street brokerages borrowing $38.1 billion a day from Federal Reserve
http://www.reuters.com/articl..wsAndPR/idUSL0539983320080405

Paulson Unveils 218 Page Bank Regulation Plan
http://www.telegraph.co.uk/money/m..8/04/01/cnusbanks101.xml

Huge Job Losses Set Off Recession Alarms
http://news.yahoo.com/s/ap/20080405/ap_on_bi_go_ec_fi/economy

81 percent of Americans think country on “wrong track”
http://www.reuters.com/article/newsOne/idUSN0348141520080404

Karl Rove Claims The Economy Is Only ‘Apparently Struggling’
http://thinkprogress.org/2008/04/02/rove-economy-struggling/

IMF gives gloomy economic outlook
http://www.reuters.com/article/ousiv/idUSL0553300520080405

Fed’s interest rate games could destroy the dollar
http://www.detnews.com/apps/pb..PINION01/804040313/1008

Carlyle Group’s Plan to Takeover the Banking System
http://www.economicanalyticsgroup.co..oups-plan-to-take-over.html

Bankrupticies Up 27%
http://money.cnn.com/2008/04/02..dex.htm?postversion=2008040212

BOE’s King Might Be Sleepwalking Into Recession
http://www.bloomberg.com/apps/news?..mnist_lynn&sid=aD237XXZ.Hok

IMF Says U.S. In Worst Economic Crisis Since Great Depression
http://prisonplanet.com/articles/april2008/040208_great_depression.htm

Federal Reserve Staff Moves Into Monitor Banks
http://business.timesonline.co.uk/tol/business/industr..ce/article3678053.ece

The Federal Reserve is a Private Financial Institution
http://www.globalresearch.ca/index.php?context=va&aid=8518

Banks Swamped By Foreclosures
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Bernanke Meets With House GOP On Economy
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Fed Official Urges Tighter Wall Street Regulation
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Radical action to fight credit crisis discussed

U.S. Economic Collapse News Archive

 

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