Jul 30 Tales From the Fed: Rivlin on Fed Independence Paul Solman: Tonight on the NewsHour, we’re airing a piece exploring the suspicions some people have about the Federal Reserve and the the Fed’s efforts to be more transparent. Amid all the talk of auditing the Fed or having… Continue reading
Jun 24 Fed Keeps Key Rate at Record Low By PBS News Hour The Federal Reserve said Wednesday that the recession is easing, but that the U.S. economy likely will remain fragile and limit the threat of inflation. Continue reading
Jun 23 What's the Relationship Between Inflation and Interest Rates? Question: I am confused about the cause/effect relationship between inflation and interest rates. Many economic talking heads claim that interest rates will rise if present monetary policy produces inflation. But the principle of supply and demand suggests that if… Continue reading
May 29 What Led to the High Interest Rates of the 1980s? Question: What were the causes and circumstances that led to the high interest rates in the 80’s? Was it inability to effect a change or inaction in addressing the issue? Paul Solman: If by “interest rates” you mean the rate… Continue reading
Sep 21 Why has the Fed repeatedly lowered interest rates? Question/Comment: Repeatedly, the Fed has lowered interest rates, and repeatedly, the market has responded, and repeatedly, it has continued its downward trend. It is obvious that that does not work. Do they want simply to lower interest rates and find… Continue reading
Jul 22 What is the future of home loans? Question/Comment: What do you think is the future of home loans: higher interest for lenders' safety or lower interest to attract borrowers? Paul Solman: You force me to trot out yet again what I once heard the late economist John… Continue reading
May 02 Watch New Federal Rules Target Deceptive Credit Card Practices The Federal Reserve proposed new credit card regulations Friday in response to growing rancor over credit practices that are widely regarded as unfair and deceptive. Robin Farzad of BusinessWeek Magazine explains the details and possible effects. Continue watching
Mar 26 Watch Paulson Urges Oversight in Wake of Bear Stearns Bailout Treasury Secretary Henry Paulson said Wednesday that investment banks may require the same government oversight that commercial banks face if they will borrow federal money. Economic analysts weigh the pros and cons of increased federal regulation. Continue watching
Mar 04 Do you think that overproduction or declining profit rates have contributed to the present subprime loan crisis? Question/Comment: Karl Marx, in his work “Capital,” alluded to the idea that overproduction contributed to a general historical tendency of capitalism to be undermined by declining returns on capital. Do you think that overproduction or declining profit rates have contributed… Continue reading
Feb 12 Watch Lenders Sign-on for Plan to Help Prevent Home Foreclosures The Bush Administration and six of the nation's largest banks agreed on a plan Tuesday that would delay some home foreclosures by 30 days, allowing lenders to negotiate more affordable terms. Treasury Secretary Henry Paulson discusses the details of the… Continue watching