federal reserve

Will high inflation persist?

Posted 6 weeks 2 days ago by Philip Brewer

Every financial calculation that you make is influenced by your expectations for future inflation: how much to borrow, where to put your savings, and whether your last raise was a reason to celebrate or to start looking for a better job. Even small decisions, like whether to buy a couple extra cans of tomato paste, are affected. No dollar amount or interest rate is good or bad, except when compared to inflationary expectations.

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Possible protections for credit card holders

Posted 7 weeks 14 hours ago by Philip Brewer

Credit Cards, Consumer Affairs

The Federal Reserve has proposed some new rules to protect people from a list of abusive lending practices. The changes aren't in effect yet, and may not actually go into effect. It's worth looking at the proposals, though, to understand what's been going on just lately. If you haven't been paying attention, you probably have no idea what the credit card companies can legally do to you.

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The Bailbondsman Approach Part Deux: Fiscal Stimulus No Gonna Workie

Posted 12 weeks 2 days ago by Jabulani Leffall

Consumer Affairs

Paul Michael essentially wrote this post in January but it needs to be said again. A culture that remedies a systemic problem that stems from borrowing, with, well...more borrowing, deserves what it gets. Some how the macro actions of the government are part and parcel to and an excuse for micro methods of the individual consumer - a continuing circle of debt.

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Savers suffering as rates fall--what to do

Posted 13 weeks 4 days ago by Philip Brewer

Investment

Federal funds rate and savings interest rates both drop

Interest rates for ordinary savers held up pretty well after the first Fed rate cut in July last year. There was a simple reason--banks needed the money. With the credit squeeze making it tough for banks to raise cash, the last thing they wanted was for savers to draw their money out in search of higher returns. The Fed's efforts to relieve the squeeze have been somewhat successful--banks have substantially cut the rates they'll pay savers.

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Federal Reserve cuts the discount rate

Posted 46 weeks 4 days ago by Philip Brewer

Personal Finance

In response to the recent credit squeeze, the Federal Reserve did something unusual: they cut the discount rate without cutting the federal funds rate. The federal funds rate is the rate at which banks lend to one another. The discount rate is the rate at which the Fed itself will lend money to banks. For the past few years, the Fed has closely coordinated changes in these rates, so to change one without changing the other is a departure.

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