Federal Reserve System

The U.S. economy needs to break its stimulus habit

Despite what various politicians and experts say, real productivity gains and real economic growth do not come from stimulus. By Richard Rumelt

Are big banks doomed to fail?

Why big banks' plan to break up in a crisis won't work.

FORTUNE -- Have you ever watched something unfold, knowing that it hasn't got a prayer of succeeding?

Then you understand how I feel about the provision in the Dodd-Frank financial reform legislation that would supposedly avoid future federal bailouts by requiring giant financial institutions to draw up so-called living wills.

These "wills," which banks are currently discussing informally with regulators, are MORE

Sizing up the Fed's few options

Should the Federal Reserve launch a new round of quantitative easing to stimulate the economy and slow inflation, or would it be pointless? Ben Bernanke is in a tough spot with few ways out.

By Cyrus Sanati, contributor

FORTUNE -- Wall Street is abuzz with speculation that the government is gearing up to inject billions of dollars of fresh cash into the economy in an effort to speed up economic growth. It MORE

Why it's time to silence the calls for higher rates

It's the question every central banker wants answered: When is the right time to raise rates? In the U.S., the answer may be later rather than sooner.

FORTUNE -- Two-thirds of Americans believe the U.S. is still in a recession, according to a recent poll by Hamilton Place Strategies, even though we're reaching the two-year anniversary of its official end. So when is the right time to raise interest rates?

The debate MORE

Barney Frank takes on the Federal Reserve

The Massachusetts Congressman sounds off on financial reform, the Fed and -- surprise! -- Republicans

FORTUNE  -- U.S. Congressman Barney Frank took on Wall Street as one of the writers of the Dodd-Frank financial reform bill. Passed last year, the law intends to clean up the way America's biggest financial institutions conduct business following the nation's banking crisis. As he observes how financial regulators apply the new law, which will largely MORE

Why the housing market is caught in a liquidity trap

For all the attention policymakers have placed on the Fed's actions over interest rates, the cost of borrowing is far from the problem.

FORTUNE – In textbook economics, lower interest rates typically spur higher investments. Money is cheap. So the assumption is that people, banks and companies will spend more, therefore helping the economy grow.

But that doesn't always work. Sometimes cutting the rate of interest, even to zero, won't necessarily pull MORE

Bernanke's fuel, oil's rally

Commodity inflation is about as transitory as our Chairman Bernanke's economic policies. When they change, so too will the price of oil.

By Daryl Jones, Hedgeye

FORTUNE -- In his press conference last week, Federal Reserve Chairman Ben Bernanke highlighted his belief that high commodity prices are simply transitory in nature. He pegged the current rise in oil prices to both supply and demand. On the supply side of the equation, he MORE

Time to short the U.S. dollar?

Over the course of the next two months, there are several catalysts that are all set up to be negative for the U.S. dollar. And then there's the dismal deficit situation.

By Daryl Jones, Hedgeye

FORTUNE -- Call us lucky or smart, but we've had a pretty good run trading the U.S. dollar in the Hedgeye virtual portfolio. Prior to our initiation of another short position in the UUP early yesterday (the MORE

Selling America: The view from a bear's chair

From equities to Treasuries, the global macro strategist Russell Napier can't find much to be hopeful about in the U.S. these days. He shares his views on the Fed, China, and how to fix the banks with a Warren Buffett tax.

FORTUNE - Russell Napier wants to make a couple of things clear. First, says the global macro strategist for brokerage house CLSA, he is not biased against the United MORE

Dear Mr. Bernanke, Press conferences are a bad idea.

Why Ben Bernanke may come to regret his decision to make the Federal Reserve more transparent.

I'm all in favor of us plain old citizens getting some idea of what our government is doing. But I've got a really bad feeling about Fed Chairman Ben Bernanke's plan to make the Fed more "transparent" by holding four news conferences a year. It sounds great, but I think Bernanke will come to regret MORE