It seems as the white surrender flag is finally being considered as the last option by the Fed. Tuesday saw the unparalleled and unusual move of the Fed to keep interest rates close to zero for a minimum period of 2 years. On many accounts it is disappointing – firstly, Ben Bernanke along with other [...]

Ben S. Bernanke lost the complete agreement of the Federal Open Market Committee as he tried to reach out for the yet another unconventional tool which led to provoking three dissenting votes  which is the most by any Federal Reserve chairman since 1992. U.S. central bankers for the very first time gave a date for their [...]

Wednesday saw Goldman Sachs saying that the Federal Reserve is likely to launch QE III (a third phase of quantitative easing) with the Federal Reserve’s promise of keeping interest rates at low levels for a minimum period of 2 years at its back. Chief economist at Goldman Sachs, Jan Hatzius, said that the likelihood of [...]

Tuesday saw the Federal Reserve making a rare promise of holding short-term interest rates near zero through the midst of 2013, indicating that the likelihood of an expansion sufficiently strong to escalate the prices and wages have been written off. It will be a hard time for the American economy until the first term of [...]

The limelight is back on the Federal Reserve, investors and earnestly pondering whether the central bank will conclude its two month long gap and proclaim some measures to help the declining economy. Federal Reserve has shown in the past before as well, who can forget their unprecedented four-year-old crusade that salvaged the financial system of [...]

Is it possible for the inability to raise the debt ceiling, to ignite a similar credit crisis which stabbed the global economy into a recession in the year 2008? A short answer would be yes, because according to warnings by some experts, the US is going to land in exactly the same situation if timely [...]

Lately, the problems relating to the deficits and national debt of the United States have been difficult to ignore with the Greek imbroglio acting as a top-up. The papers are filled with pictures of burning Athens streets and stories covering fiscal austerity. In such situations a comparison between the two becomes so very natural, however [...]

A 21- cent cap on fees charged on debit-card transaction was set by the Federal Reserve Board this Wednesday.  The limit was more generous than anticipated by some banks and card issuers and less-severe than it had previously proposed and gave them a break. The order has come as a relief to the financial industry [...]

The dollar stabilized on Thursday and could climb further as the investors loosened their bullish bets in high-yielding currencies following no hint of future monetary easing by the US Federal Reserve. Sterling slipped against the U.S. currency to the depths of three-months at $1.6017, getting rid of by selling at reduced prices following quite the [...]

New vulnerable spots in the U.S. economy to be acknowledged by the Federal Reserve in a policy statement after the meeting on Wednesday, however, it would be wrong to have any expectations from the policymakers for doing anything about it in the near future. That is to some extent, the reason being recent rise in [...]