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The Fed 'Twist' That Won't Dance

Wall Street Journal Original article ›

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A delicate balancing act for the Federal Reserve to withdraw support that puts a dark cloud over the economy..

10/01/2009

Incrementally withdrawing support where and when possible will be a tough act for the Fed, after the Fed has committed $1 trillion so far as support to debt securtization markets that breathe life into the USA economy. Shiller says these markets are dead, we are stuck, and no one knows what will happen if they are hobbled for corporate real estate, mortgages, auto loans.

Grouped Articles

Tepid Growth Restrains Fed

Wall Street Journal 08/01/2013

Fed Must Consider the World and All U.S. Employment

Wall Street Journal 04/09/2015

How the Fed Can Avoid the Next Bubble

Wall Street Journal 10/06/2009

Paralysis in the Debt Markets Is Deepening the Credit Drought

New York Times 10/07/2009

New Order: No Money, No Problem

Wall Street Journal 10/07/2009

Fed Frets About Commercial Real Estate

Wall Street Journal 10/07/2009

U.S. Federal Reserve Bank policy emerging from the September 2011 FOMC meeting

09/07/2011

The Fed's policy according to Neil Irwin of the Washington Post, is to move in the direction of reducing the composition of its bond portfolio rather than printing new money for new bond purchases. That policy of printing money for bond purchases came under criticism from Republican presidential candidates and there were three dissenters at the last FOMC meeting. Mindful of this the Fed is now considering a policy called a "switch," of buying more long term bonds and reducing the short term bonds in its portfolio. This would reduce long term interest rates. The impact on the housing market of past and current moves is limited by the fact that the mortgage markets are not functioning properly, as a large proportion of homeowners are under water (owe more than their house is worth). The Fed's effort come under its mandate to keep unemployment in check in addition to inflation.

Grouped Articles

‘Fragile Five’ Is the Latest Club of Emerging Nations in Turmoil

New York Times 01/28/2014

More Men in Prime Working Ages Don't Have Jobs

Wall Street Journal 02/06/2014

Fed considers buying more long-term Treasury bonds to lower mortgage rates - The Washington Post

Washington Post 09/07/2011

Bernanke Takes On a Balancing Act

Wall Street Journal 09/07/2011

Fed Shifts Bond Portfolio

Wall Street Journal 09/21/2011

Parsing the Fed: How the Statement Changed

Wall Street Journal 09/21/2011

Criticism of Bernanke's role at the Federal Reserve

01/02/2009

The difficult renomination and the subsequent 70-30 vote with 30 Senators opposed including Boxer, Feingold, Sanders and others. This follows Ron Paul's criticisms in Congress of the Fed's role- see that link group.

Grouped Articles

Martin Feldstein: The Federal Reserve's Policy Dead End

Wall Street Journal 05/09/2013

Bhidé and Phelps: Central Banking Needs Rethinking

Wall Street Journal 07/16/2013

Fed Chairman’s Departure Casts a New Light on the Bush Legacy

New York Times 07/26/2013

Wanted: A Boring Leader for the Fed

New York Times 08/20/2013

The Fall of Summers

Wall Street Journal 09/15/2013

What's Needed in the Next Fed Chief

New York Times 09/15/2013


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