Timothy Geithner and Ben Bernanke told lawmakers on Tuesday that the Lehman bankrupcty is the best example of the need for the Obama administration's proposed financial regulatory reforms. Former CEO Dick Fuld defended the bank, claiming it was hit by a "perfect storm."

Continue reading Capitol Hill Revisits the Lehman Brothers Collapse

Capitol Hill Revisits the Lehman Brothers Collapse originally appeared on DailyFinance on Tue, 20 Apr 2010 13:00:00.

Filed Under: Investing, Goldman Sachs

Most investors know that large budget deficits can lead to an increase in inflation. However, given the current price trend, to remove fiscal, or monetary, stimulus now would be precisely the wrong policy to follow: deflation, not inflation, remains the bigger threat to the economy.

Continue reading The Fed Remains on the Lookout for Deflation and Inflation

The Fed Remains on the Lookout for Deflation and Inflation originally appeared on DailyFinance on Sun, 18 Apr 2010 10:00:00.

Filed Under: Columns, Economy

In a speech that received scant attention, Fed Chairman Ben Bernanke was unambiguous about the effect of central bank and government interventions during the financial crisis: Those actions prevented an economic meltdown that would have rivaled the Great Depression -- or been worse.

Continue reading Bernanke on the Financial Crisis: Interventions Prevented Cataclysm

Bernanke on the Financial Crisis: Interventions Prevented Cataclysm originally appeared on DailyFinance on Sun, 11 Apr 2010 10:44:00.

Filed Under: Economy, People

In a speech in Dallas, Federal Reserve Chairman Ben Bernanke said that weakness in the housing and job markets remain the biggest economic challenges facing the U.S. Even so, modest growth should cause unemployment to edge lower over the next year.

Continue reading Bernanke Sees Modest Growth, Warns of Deficits

Bernanke Sees Modest Growth, Warns of Deficits originally appeared on DailyFinance on Wed, 07 Apr 2010 15:40:00.

Filed Under: Economy

Federal Reserve Chairman Ben Bernanke told lawmakers Thursday that near-zero short-term interest rates are still required to bolster the nascent economic recovery and the central bank has other tools to reduce the threat of inflation when the time comes.

Continue reading Bernanke Affirms Near-Zero Interest Rate Policy

Bernanke Affirms Near-Zero Interest Rate Policy originally appeared on DailyFinance on Thu, 25 Mar 2010 11:41:00.

Filed Under: Economy, Investing

Testifying before a congressional committee, Ben Bernanke urged lawmakers not to strip the Fed of key oversight functions as part of a wider regulatory overhaul, arguing it would deprive the central bank of key information needed to formulate monetary policy and steer the financial system in times of calamity.

Continue reading Bernanke Defends Fed Turf

Bernanke Defends Fed Turf originally appeared on DailyFinance on Wed, 17 Mar 2010 14:29:00.

Filed Under: Economy

Anyone hoping the Fed chairman would tip his hand on when the central bank might start tightening again was disappointed. But he did have news, and that came in talking about the methods the Fed will likely use, including hiking rates paid to banks on reserves they keep at the Fed.

Continue reading Stimulus Exit: Bernanke Talks Strategy but Not Timing

Stimulus Exit: Bernanke Talks Strategy but Not Timing originally appeared on DailyFinance on Wed, 10 Feb 2010 12:30:00.

Filed Under: Economy, People, Investing

Fed Chairman Ben Bernanke and a panel of top economists will go before a House committee to discuss the right way to remove the crutch of government stimulus from the economy so that it doesn't knock the nation back into recession.

Continue reading House Panel to Ask Experts About Unwinding Stimulus

House Panel to Ask Experts About Unwinding Stimulus originally appeared on DailyFinance on Tue, 09 Feb 2010 14:18:00.

Filed Under: Economy, People, Investing, Credit

Prior to the Federal Open Market Committee meeting in January, there was speculation about whether the Fed's monetary-policy arm would announce a shift in the benchmark rate away from the overnight rate it charges banks, to the interest paid on bank reserves. Economists at Bank of America (BAC) joined the speculation that the Fed may start pointing to the rate paid on reserves as its primary monetary-policy tool. While this might seem like inside-baseball for most Americans, the change could result in higher interest rates for your business or consumers loans and especially most credit cards that are now variable and reset based on the ups and downs of the prime rate.

Continue reading Why Major Change in Fed's Interest Rate Policy Would Be Worrisome

Why Major Change in Fed's Interest Rate Policy Would Be Worrisome originally appeared on DailyFinance on Sat, 06 Feb 2010 08:00:00.

Filed Under: Economy, People, Investing, Bank of America

Federal Reserve Chairman Ben Bernanke won Senate confirmation to a second term atop the nation's central bank Thursday. First he had to clear a key procedural vote earlier in the day that prevented a Republican filibuster. In the final confirmation tally, lawmakers supported Bernanke by a margin of 70 to 30.

Continue reading Four More Years: Bernanke Wins Second Term as Fed Chief

Four More Years: Bernanke Wins Second Term as Fed Chief originally appeared on DailyFinance on Thu, 28 Jan 2010 16:25:00.

Filed Under: Economy, People