Entries in Fed (3)


Markets Close Down Again, Causing New Worries for the Fed

Hemera/Thinkstock(NEW YORK) -- The Dow lost 49 points Wednesday to close at 12,604. The Nasdaq closed off 14 points, while the S&P gave up a fraction.

The Federal Reserve may need to take more action if the U.S. economy loses momentum. Officials worry that Congress may fail to avert tax hikes and across the board spending cuts that start at year's end.

Copyright 2012 ABC News Radio


Stocks Plunge on Jobs, Gloomy Fed Statement

ABC News(NEW YORK) -- The U.S. stock market plummeted after a rocky of day of trading on Thursday.

The Dow Jones industrial average fell 391.01 points, or 3.51 percent, closing at 10,733.83. The NASDAQ ended the day down 3.25 percent at 2,455.67.

Early in the day the Dow was down more than 500 points. U.S stock markets started a sell-off Wednesday after the Fed announced its latest effort to boost the economy but also said that there are "significant downside risks" to the global economy. Things went from bad to worse as global stock markets followed the negative trend that then continued in trading in New York on Thursday.

Thursday was the biggest one-day point and percentage drop on the Dow since Aug. 10, 2011. It was also the biggest two-day point drop on the Dow since November 2008, when the economy was in the depths of the recession.

Investors are clearly panicking about the threat of another recession in the U.S. and Europe.

European leaders cannot seem to come up with a bold consensus to deal with the crisis in their economies, while there was yet another example of the bickering in Washington as GOP leaders failed to pass a stop-gap bill in Congress.

The Labor Department announced earlier in the day that applications for unemployment claims fell 9,000 last week to 423,000, higher than the 420,000 claims economists expected.

Copyright 2011 ABC News Radio


Bernanke: Expect Three- to Four-Percent Growth in U.S. Economy in 2011

Photo Courtesy - Alex Wong/Getty Images(WASHINGTON) -- Fed Chairman Ben Bernanke said the economy will see a three- to four-percent growth in 2011, but it will not hasten the reduction in unemployment.

“We see the economy strengthening. It’s looked better in the past few months,” Bernanke said.  “We think a three- to four-percent growth number for 2011 seems reasonable.”

“That’s not going to reduce unemployment at the pace that we’d like it to, but certainly, it’d be good to see the economy growing and that means more sales, more business.”

Bernanke’s comments came at a small business forum where he discussed topics ranging from the availability of credit to small businesses to the need for prudent banking.

“We got in trouble in the first place by making too many bad loans, right. So you’ve got to make good loans.  We’ve got to have credit worthy borrowers.”

In regards to the housing market, Bernanke said it would be a slow and steady process to restore stability to the residential mortgage market.

“It’s not going to happen overnight.  The economy’s got to come back.  Confidence has to come back, but we can do that by putting in the effort.”

Bernanke was joined at the small business forum by Chairman of the FDIC Sheila Bair, Sen. Mark Warner and Tom Bell, chairman of the board of directors at the U.S. Chamber of Commerce.

Warner argued that deficit reduction is on the forefront of legislators’ minds this session and touted the plan he and Sen. Saxby Chambliss are organizing, which would incorporate recommendations from the president’s deficit commission.

“I think we also have to longer term put in place a meaningful deficit reduction plan,” Warner said.  “It’s put up or shut up time, and I think we will have a broad base of senators, Democrats and Republicans alike, who say the single largest threat, long term threat to our national economy, is not simply the short term challenges we face right now, or the financial crisis, but getting our nation’s balance sheet in order.”

Copyright 2011 ABC News Radio

ABC News Radio