Archive for the ‘Worry’ tag
Fed’s Stern Says Fed Can’t Wait for End of Crisis to Raise Rates
Speaking in an interview with Bloomberg on Friday, Minneapolis Federal
Reserve President Gary Stern (voter) said that the Federal Reserve
can’t wait for the end of the crisis to raise rates.
“I worry about the prospects for inflation, the headline inflation
rate is clearly too high,” said Stern.
Stern noted that the Fed is well positioned for a downside risk to
growth. He commented that the current credit crisis was reminiscent of
the early 1990s.
Core CPI Gives Fed Green Light to Cut, Economist Says
The lower-than-expected core CPI report released
Wednesday should allow the Fed to cut rates once again
rather than worry about rising inflation, an economist says. However, as
energy prices continue rising, there may be reason to put more emphasis
on total inflation rather than the core figure, says another
economist.
Doubting the Viability of Fannie Mae
With Washington increasingly relying on Fannie and
Freddie to pick up the slack in buying mortgages and mortgage-
backed securities - the two between them bought 80 percent of all
mortgages purchased by investors in the first quarter of 2008 - The New
York Times in an article on Tuesday asked whether the two companies were
up to the task.
The Times article says that some financial experts
worry that the companies are dangerously close to the
edge. The article quoted analysts as saying that the companies are
sitting on billions of dollars in additional losses that
they have not yet…