Weakness in U.S. industrial production is consistent with
recessionary levels, economists said following the 0.7%
decline in Thursday's report from the Federal Reserve.
T.J. Marta,
fixed income strategist from RBC Capital Markets, said the "collapse"
resembles the turbulence seen during the 1990 recession,
the 2001 recession, Hurricane Katrina, and the start of the Iraq War.
Michael Montgomery, economist at Global Insight, said there
were...
Speaking at the Chicago Fed's Conference on Bank Structure and
Competition, Fed Chairman Ben Bernanke said he would strongly
urge firms to continue raising new capital.
"Recent events have also demonstrated the importance of
generous capital cushions for protecting against adverse
conditions in financial and credit markets," Bernanke said.
"I strongly urge financial institutions to remain
proactive in their capital-raising efforts..."
There is a need for investment banks to be regulated
like commercial banks, according to former Fed Chairman Paul Volcker
testifying before the Congressional Joint Economic Committee on Wednesday
morning.
Volcker also observed that the Fed's involvement in the
mortgage market is a...
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.
There is an elevated amount of reluctance from banks
to lend, according to Boston Fed President Eric Rosengren, speaking
Wednesday at the Boston Fed's Basel II conference on New Challenges for
Operational Risk Measurement and Management.
