They have a lot of work to do…

Today the Federal Open Market Committee adjourned their meeting without a change in interest rates.  The primary focus of Chairman Ben Bernanke was on the need to resuscitate our private credit markets.  The Feds announced that they are prepared to buy long term treasuries if the credit trend continues to be tight in the market.

More on Fed's Hold Benchmark Rate; Focus on Treasuries

The Federal Reserve released the statement regarding the Citigroup intervention.  Notice the guidelines by which the Fed states they will preserve the strength of our banking system and promote recovery.  Joint Statement by Treasury, Federal Reserve, and the FIDC on Citigroup.

More on Federal Reserve, FDIC, and The Treasury On The Citi Bailout

Today the Federal Open Market Committee unanimously voted to reduce the benchmark rate to 1%.  The prime interest rate (rate consumers borrower at) will likely follow.  The .5% dropped brings the fed funds rate to a half a century low.

More on Feds Lower Fed Funds Rate Again

Last week one of my readers asked a few questions regarding my thoughts on the stimulus package and the economy in its state following my post "Possibilities Of Another Stimulus Package".  I enjoy the interaction and questions and thought it to be prudent to post the reply:

More on Response

Today Federal Reserve Chairman Ben Bernanke share with Congress his concerns for the economy that continues to see a slow down.  Despite the recent movements by the Bush Administration and the global efforts of the world's central banks, the US Economy is still continuing retract.   The financial and credit markets continue to show daily uncertainty.

More on Possibilities Of Another Stimulus Package

Today the Federal Reserve, the European Central Bank, the Bank of England, and the Swiss national bank announced they will lend an unlimited amount of funds to commercial banks in an effort to revive the financial markets worldwide.  The Feds lead the way in the unprecedented event that backs the governments recent intervention.

More on Relief in the Market

Today the Federal Open Market Committee unexpectedly lowered the federal funds rate by 50 basis points (.5%) to 1.5%.  Several central banks from around the globe also reduced funds rates by 50 basis points in an effort to restore some confidence in the markets.  The prime interest rate will be reduced to 4.5%.

More on Feds Lower Fed Funds Rate

Tuesday the Federal Reserve Board met and left the federal funds rate unchanged despite the news of Lehman Brothers' bankruptcy and the buy-out of Merrill Lynch.  The federal funds rate, which banks charge each other for over-night deposits, will remain at 2%.  The prime interest rate will follow suit, remaining at 5%.  Consumers are more familiar with the prime interest rate because the rates for home equity loans/lines of credit and credit cards are tied to the prime rate.

More on Federal Reserve leaves fed funds rate unchanged