The Federal Reserve lowered its benchmark interest rate by half a point Wednesday — the second rate reduction in eight days in a bid to help ease pressure on jittery financial markets. Wall Street Journal economics editor David Wessel examines the Fed’s latest move. Continue reading
U.S. House leaders met with Treasury Secretary Henry Paulson Wednesday to shape the details of a economic stimulus package amid fears of a recession and concerns over volatile financial markets, both in the U.S. and abroad. Two economists assess the proposals and discuss what’s most likely to boost the U.S. economy. Continue reading
Federal Reserve Chairman Ben Bernanke has called for government action to revive the slowing U.S. economy, in a key test of his tenure as the head of the central bank. Two business reporters consider how Bernanke is responding to the economic downturn and how his background has prepared him to be a key decision maker. Continue reading
President Bush spoke with congressional leaders Thursday about an economic rescue package as Fed chief Ben Bernanke testified on Capitol Hill that it is “critically important” that a stimulus effort take effect quickly. Members of the House budget panel detail the debate over what provisions the package should include. Continue reading
President Bush met with economic advisers Friday to consider possible stimulus packages, as the Labor Department announced that low hiring in December pushed the U.S. unemployment rate to 5 percent, a two-year high. Continue reading
The Federal Reserve proposed new mortgage regulations Tuesday that would help protect home buyers from shady lending practices following losses suffered in the risky “subprime” home loan category. A Wall Street Journal reporter looks at the recent mortgage crisis and how the new Fed rules may prevent future subprime problems. Continue reading
- How is the Fed to be blamed if financial institutions are reckless and greedy during periods of low interest rates?
Question/Comment: Many commentators have blamed the Fed for the mortgage mess. How is the Fed to be blamed if financial institutions are reckless and greedy during periods of low interest rates? Paul Solman: You’re cheating, Lloyd. This is two e-mails … Continue reading
As home foreclosures reached a record high Thursday, President Bush announced a deal with mortgage lenders to freeze interest rates on some subprime mortgages due to move sharply higher soon. Treasury Secretary Henry Paulson discusses the details of the proposal. Continue reading
Question/Comment: As a long time observer of the mortgage market, particularly the subprime segment, I have been anticipating the current economic crunch for some time. Accordingly, I have been keeping a large amount of my savings ($85K) in an FDIC … Continue reading
- When can we expect to break even, or at least recover some of the value that we lost due to the declining real-estate market?
Question/Comment: Everyone mentions all of those unfortunate people who are defaulting on their home loans due to the sluggish economy. Nobody mentions, however, the many hardworking Americans who saved and struggled to buy their dream homes and they are now … Continue reading