Federal Reserve System

Schumpeter superior to Smith

Schumpeter's creative destruction is better for understanding the nature of the US economy than Smith's invisible hand and perfect competition, according to new research from the Philadelphia Federal Reserve.

Financial instability hurts corporate

Financial stability is connected to corporate investment and deterioration in the health of the financial sector can restrain macroeconomic performance, finds a new study from the Federal Reserve.

Citigroup rescues teetering Wachovia

US regulators managed to avert another bank failure on Monday, persuading Citigroup, the world's biggest bank, to rescue Wachovia, another large US lender, which looked likely to collapse in the coming days.

Nordic banks and RBA join Fed swap club

The Federal Reserve on Wednesday stepped up efforts to counter money market tensions, establishing additional swap lines with the Reserve Bank of Australia and three Scandinavian central banks to meet demand for dollar loans.

Main Street feeling financial turmoil: Bernanke

Painting a bleak picture of the American economic landscape, Ben Bernanke, the chairman of the Federal Reserve, warned US lawmakers on Wednesday that events on Wall Street were beginning to impact the real economy.

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