Economics | GlobalPost

Fed sticks with bond purchases but offers brighter outlook for the economy

The Canadian PressJune 19, 2013 15:01

WASHINGTON - Chairman Ben Bernanke ended weeks of speculation Wednesday by saying the Federal Reserve will likely slow its bond-buying program later this year and end it next year because the economy is strengthening. The Fed's purchases of Treasury and mortgage bonds have helped keep long-term interest rates at record lows. A pullback in its $85 billion-a-month program would likely mean higher rates on mortgages and other consumer and business loans.

US stocks tumble after Fed signals bond tapering

Agence France-PresseJune 19, 2013 17:35

US stocks Wednesday fell sharply after Federal Reserve Chairman Ben Bernanke said the Fed expects to taper bond-buying purchases later this year. At the closing bell, the Dow Jones Industrial Average sank 205.50 (1.34 percent) to 15,112.73. The broad-based S&P 500 fell 22.85 (1.38 percent) to 1,628.85, while the tech-rich Nasdaq Composite Index tumbled 38.98 (1.12 percent) to 3,443.20. The Federal Open Market Committee announced that it was keeping its $85 billion-a-month bond-buying program in place.

Stocks, bond prices drop as Fed points to reduced bond buying

Thomson ReutersMay 7, 2013 12:55

By Leah Schnurr NEW YORK (Reuters) - Stocks tumbled and benchmark Treasury bond yields rose to levels not seen since March 2012 on Wednesday after Ben Bernanke laid out a blueprint for the wind-down of the Federal Reserve's bond-buying program that has bolstered risky assets. Bernanke's comments were more explicit than markets expected. He said the Fed's policy-setting committee will begin to pull back on purchases later this year if the economy grows as expected, with the eventual goal of ending the program by the middle of 2014.

Stocks tumble, traders fret over tapering of stimulus, Fed says economy mending

The Canadian PressJune 19, 2013 09:03

TORONTO - The Toronto stock market closed deep in the red Wednesday as the U.S. Federal Reserve said it doesn't plan on cutting back on a key stimulus program right now. The S That could mean that the Fed is moving closer to reducing its program of buying US$85 billion of bonds every month, but the statement gave no indication of when that might happen. "The Fed, right now, is really trying to walk a tightrope," said George Rusnak, head of fixed income at Wells Fargo Private Bank in New York.

Fed may begin cutting QE later this year

Agence France-PresseJune 19, 2013 17:04

Federal Reserve Chairman Ben Bernanke said Wednesday that the Fed could begin to ratchet down its key stimulus program later this year, signaling a growing confidence in the US economy. The Fed's policy board kept its quantitative-easing program, aimed at holding interest rates down, locked in place for the meantime, saying that unemployment remains high and growth is still being held back by government spending cuts.

Bernanke says Fed likely to reduce stimulus this year

Thomson ReutersJune 19, 2013 02:30

By Alister Bull and Pedro da Costa WASHINGTON (Reuters) - Federal Reserve Chairman Ben Bernanke said on Wednesday the U.S. economy is expanding strongly enough for the central bank to begin slowing the pace of its bond-buying stimulus later this year. Bernanke's confirmation that the Fed is getting closer to pulling back on its $85 billion in monthly asset purchases confirmed investor fears, sending stocks and bonds sharply lower, and pushing benchmark Treasury yields to a 15-month high.

Housing recovery to 'accelerate' U.S. economy: Summers

Thomson ReutersJune 19, 2013 17:33

By Steven Scheer JERUSALEM (Reuters) - A recovery in the housing market and strong growth in consumer wealth will help jump-start the U.S. economy later in 2013, said Larry Summers, a former adviser to President Barack Obama. Summers, considered a possible candidate to replace Federal Reserve Chairman Ben Bernanke when his current term ends next year, said a further boost would come from an increase in U.S. energy production

Wall St. slumps after Bernanke hints at slowing bond buying

Thomson ReutersJune 19, 2013 09:31

By Ryan Vlastelica NEW YORK (Reuters) - Stocks fell more than 1 percent on Wednesday after Federal Reserve Chairman Ben Bernanke said the central bank would start to reduce its stimulus measures later this year if the economy is strong enough. Equities have been closely tethered to ultra-loose monetary policy, which has been key to the S&P's climb of more than 14 percent so far this year. Benchmark 10-year U.S. bond yields jumped to a 15-month high on expectations the Fed will reduce its bond buying.

Mortgage settlement monitor says banks still falling short on helping struggling homeowners

The Canadian PressJune 19, 2013 12:01

WASHINGTON - Homeowners trying to avoid foreclosure must wait too long for their loan modification applications to be reviewed by some of the nation's top mortgage servicers, according to a report released Wednesday. Such delays can plunge borrowers deeper in debt. Joseph A. Smith Jr., the independent monitor of last year's national mortgage settlement, said that while the banks are doing a better job complying with new mortgage servicing rules, more needs to be done.

Instant View: Fed to keep buying bonds, boosts 2014 forecasts

Thomson ReutersJune 19, 2013 16:31

(Reuters) - The Federal Reserve on Wednesday said it would keep buying $85 billion in bonds per month and gave no explicit indication that it was close to scaling back the program, despite intense market speculation it could soon start drawing it to a close.