Federal Reserve System

Fed cuts rates despite strong growth

The Federal Open Market Committee (FOMC) decided on Wednesday to cut the federal funds rate by 25 basis points to 4.5% in spite of better-than-expected economic growth for the third quarter.

Fed's regulatory response to subprime revealed

Better consumer information, rules to address unfair lending practices and a more coordinated enforcement of consumer-protection laws are needed to prevent another subprime crisis, according to the Federal Reserve.

Superfund will hamper pricing, Greenspan warns

Alan Greenspan, the former chairman of the Federal Reserve, has said that the $75 billion mortgage securities superfund, backed by Citigroup, JP Morgan Chase and Bank of America, could do more harm than good.

Fed speculation prompts new dollar-euro low

The dollar fell to a record $1.432 against the euro on Thursday as poor macroeconomic data and results from one of the US's biggest banks prompted futures traders to speculate that the Federal Reserve will cut rates.

Relationships help for IPO performance

Investors prefer initial public offerings (IPOs) managed by relationship banks than similar ones managed by outside banks, according to research by the Chicago Federal Reserve.

Kroszner on the role of the Fed

Randall Kroszner, a member of the Federal Reserve's Board of Governors, listed the central bank's responsibilities with regard to monetary policy, supervision and consumer protection in a speech on Thursday.

Sales remain within Gold Agreement Limit

Gold sales by the 16 signatories to the Central Bank Gold Agreement between 27 September 2006 and 26 September 2007 amounted to 475.75 tonnes, 24.25 tonnes shy of the 500 limit, the Bank for International Settlements said on Wednesday.

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