Interest Rates | St. Louis Public Radio

Interest Rates

Derek Laney, Michael McPhearson, and Jeff Ordower (from left to right) were among protesters outside the Federal Reserve Bank of St. Louis on Thursday.
(Maria Altman, St. Louis Public Radio)

What recovery?

That was the question being asked Thursday by a small group of activists outside the Federal Reserve Bank of St. Louis.

About a dozen protesters called on the Fed to focus on unemployment, especially among minorities, rather than on keeping inflation rates low. They said if the Federal Open Market Committee raises the interest rate this year, as anticipated, it would likely mean fewer jobs.

This article originally appeared in the St. Louis Beacon. - The Senate Banking Committee, in a 14-8 vote, recently sent to the full Senate, President Barack Obama’s nominee to become the next chair of the Federal Reserve Board of Governors. With the change in filibuster rules, Janet Yellen’s confirmation is a near certainty.

This article first appeared in the St. Louis Beacon: Looking at stock prices over the past few months, May 22 stands out. That was the first time Fed Chairman Ben Bernanke “rocked” the markets with his comment that maybe the Fed would reconsider the magnitude and duration of its current buying scheme.

This article first appeared in the St Louis Beacon, Dec. 17, 2008 - The Federal Reserve's decision to cut an important interest rate to a record low of 0.25 percent begs the question: What's next? Goose eggs?

The Fed vowed Tuesday that it would take aggressive action in the face of the worsening recession, including cutting its target interest rate of 1 percent by three-quarters. The interest rate is an overnight bank lending rate known as the federal funds rate. In a statement released at the conclusion of a two-day meeting, the Fed also said that interest rates would remain low "for some time" and that it would consider other efforts to boost the economy, such as the purchase of U.S. Treasury bonds.

Commentary: The Fed's interest rate mistake

Oct 29, 2008

This article first appeared in the St. Louis Beacon: October 29, 2008 - The Fed's decision to again lower its federal funds rate will not prevent an economic downturn. In fact, this move will cause even greater problems when it decides to wean the economy from its cheap credit policy.

This article first appeared in the St. Louis Beacon: October 9, 2008 - On Monday, Federal Reserve Chairman Ben Bernanke told the National Association for Business Economics that the current financial turmoil threatens overall economic growth. "The combination of the incoming data and recent financial developments suggests that the outlook for economic growth has worsened and that the downside risks to growth have increased." He hinted that the Fed would take strong actions to mitigate this decline.

It didn't take long.

This article first appeared in the St. Louis Beacon: June 25, 2008 - The Federal Open Market Committee (FOMC) announced on June 25 that it would hold the interest rate on banks' overnight loans at 2 percent. It also warned that inflation will get more scrutiny in future meetings. What the economists on the committee fail to comprehend is that actions really do speak louder than words.