Federal Reserve

Federal Reserve Proposal Fails to Protect Consumers from Unauthorized Loans

August 6, 2008 -- Washington, DC – In comments filed this week, Consumer Federation of America (CFA), U.S. PIRG and state consumer organizations told the Federal Reserve and other financial regulators that proposed FTC Act rules on bank overdraft “services” fail to protect cash-strapped families from high cost and unfair loans. The agencies proposed rules that require customers to opt-out of bank overdraft loans to avoid future fees.    » read more »

August 4, 2008 -- WASHINGTON – Describing the credit card industry as “rife with unfair, deceptive, and predatory practices,” Senator Carl Levin, D-Mich., today urged the Federal Reserve to strengthen its proposed regulation aimed at unfair or deceptive credit card practices. In a 13-page letter, Levin, chairman of the Senate Permanent Subcommittee on Investigations, detailed several abusive practices used by credit card issuers that need to be ended.    » read more »

23 June 2008 -- Top officials of the U.S. central bank are expected to hold interest rates steady when they gather at a key policymaking meeting Tuesday and Wednesday in Washington.

The U.S. Federal Reserve has cut interest rates several times recently to bolster economic growth that has been hurt by the faltering housing market, tight credit, and other problems.

But economists say cutting rates too low can spark inflation, which is a growing threat as oil prices soar to ever higher record levels.

Experts interviewed by news organizations, like Bloomberg and Reuters, say the Fed will probably keep interest rates unchanged for a while, but raise them later this year.

Source: VOA News

(As Prepared for Delivery)

April 2, 2008 -- Thank you, Mr. Chairman, for holding this important and timely hearing. In recent weeks, we’ve seen a widespread breakdown in the financial markets. A massive housing bubble is collapsing. One of our nation’s largest investment banks nearly collapsed, and the Federal Reserve has put hundreds of billions of dollars on the line to preserve economic stability.

The crisis has had far-reaching effects on the rest of the economy as well, taking its toll on the job market and shaking the credit

market. 7.4 million Americans are now unemployed, and two million families are at risk of foreclosure.    » read more »

02 April 2008 -- The head of the U.S. central bank, Ben Bernanke, told a congressional committee the U.S. economy could face a mild recession, but it should recover later this year. VOA's Barry Wood reports.

Federal Reserve Chairman Ben Bernanke said the economy is going through a very difficult period. While conceding that a recession is possible, he said it is too early to say the economy is in recession, usually defined as six months of negative growth.

Federal Reserve Chairman Ben S. Bernanke: Photo by trackrecord (CC)    » read more »

March 17, 2008 -- Responding to the Federal Reserve’s emergency action on the sale of Bear Stearns, John Irons, Research and Policy Director of the Economic Policy Institute, issued this statement:

“Emergency actions by the Federal Reserve over the weekend to back and coordinate the fire-sale of the investment bank Bear Stearns were necessary to ensure the stability of the financial market, but underlying instabilities remain unaddressed.    » read more »

17 March 2008 -- Asian stocks opened sharply lower and the dollar fell Monday morning despite steps taken by the U.S. Central Bank to avert a credit crisis that threatens to plunge the U.S. economy into recession.

Late Sunday, the Federal Reserve cut its lending rate to banks, about the same time U.S. banking giant JPMorgan Chase agreed to buy cash-strapped rival Bear Stearns.    » read more »