The Bureau of Labor Statistics released its "Employment Situation Summary" for the month of November. The unemployment rate declined to 7.7 percent, while nonfarm payroll employment increased by 146,000. Continue reading

The Bureau of Labor Statistics released its "Employment Situation Summary" for the month of October. The unemployment rate ticked up to 7.9 percent, while nonfarm payroll employment increased by 171,000. Continue reading

The CBPP has updated its chart (full report) showing the source of the budget deficit, "and they continue to find that these deficits stem overwhelmingly from the economic downturn... Continue reading

The Bureau of Labor Statistics released its "Employment Situation Summary" for the month of September. The unemployment rate declined to 7.8 percent, while nonfarm payroll employment increased by 114,000. Continue reading

Conditional on their individual assumptions about appropriate monetary policy, participants judged that the economy would grow at a moderate pace over coming quarters and then pick up somewhat in 2013 before expanding in 2014 and 2015 at a rate modestly above what participants saw as the longer-run rate of output growth. Continue reading

The third round of quantitative easing (QE3) was revealed by the FOMC in this statement. QE3 will consist of purchasing additional agency mortgage-backed securities at a pace of $40 billion per month. The FOMC reaffirmed their decision to keep the target range for the federal funds rate at 0 - 1/4 percent and exceptionally low through mid-2015 (previously late-2014). The FOMC will continue through the end of the year its program to extend the average maturity of its holdings of securities. In combination with previous announced actions by the FOMC, their holdings of longer-term securities will increase by about $85 billion each month through the end of the year. Continue reading

The Bureau of Labor Statistics released its "Employment Situation Summary" for the month of August. The unemployment rate declined to 8.1 percent, while nonfarm payroll employment increased by 96,000. Mark Thoma provides a good interpretation of today's news: "Will August job report propel the Fed into action?" Continue reading

The Bureau of Labor Statistics released its "Employment Situation Summary" for the month of July. The unemployment rate rose to 8.3 percent, while nonfarm payroll employment increased by 163,000. Continue reading

The FOMC announced their decision to keep the target range for the federal funds rate at 0 - 1/4 percent. The statement confirmed the FOMC intends to keep the federal funds rate low through late 2014 and decided to continue to extend the average maturity of its holdings of securities through end of the year. In addition "The Committee will closely monitor incoming information on economic and financial developments and will provide additional accommodation as needed..." Continue reading

The Chairman of the Federal Reserve, Ben Bernanke, presented the Semiannual Policy Report before the U.S. Senate committee on banking, housing and urban affairs. The U.S. economy has continued to recover, but economic activity appears to have decelerated somewhat during the first half of this year. After rising at an annual rate of 2-1/2 percent in the second half of 2011, real gross domestic product (GDP) increased at a 2 percent pace in the first quarter of 2012, and available indicators point to a still-smaller gain in the second quarter. Continue reading

The Bureau of Labor Statistics released its "Employment Situation Summary" for the month of June. The unemployment rate remained at 8.2 percent, while nonfarm payroll employment increased by only 80,000. Mark Thoma provides a good interpretation of today's news: "Employment Report Shows Little Change from Last Month" Continue reading

The ECB announced today several monetary policy decisions: The interest rate on the main refinancing operations of the Eurosystem will be decreased by 25 basis points to 0.75%, starting from the operation to be settled on 11 July 2012. The interest rate on the marginal lending facility will be decreased by 25 basis points to 1.50%, with effect from 11 July 2012. The interest rate on the deposit facility will be decreased by 25 basis points to 0.00%, with effect from 11 July 2012. Continue reading

...The continuation of the maturity extension program will proceed at the current pace and result in the purchase, as well as the sale and redemption, of about $267 billion in Treasury securities by the end of 2012.... Continue reading

The FOMC announced their decision to keep the target range for the federal funds rate at 0 - 1/4 percent. The statement revealed the FOMC intends to keep the federal funds rate low through late 2014 and continue through the end of the year its program to extend the average maturity of its holdings of securities Continue reading

The Bureau of Labor Statistics released its "Employment Situation Summary" for the month of May. The unemployment rate went up to 8.2 percent, while nonfarm payroll employment increased by only 69,000. Mark Thoma provides a good interpretation of today's news: Will the weak employment report prompt action from policymakers? Continue reading

How will the European peripheral countries adjust? Continue reading

The Bureau of Labor Statistics released its "Employment Situation Summary" for the month of April. The unemployment rate came in at 8.1 percent, while nonfarm payroll employment increased by 115,000... Continue reading

It is of utmost importance to ensure fiscal sustainability and sustainable growth in the euro area. Most euro area countries made good progress in terms offiscal consolidation in 2011. While the necessary comprehensive fiscal adjustment is weighing on near-term economic growth, its successful implementation will contribute to the sustainability of public finances and thereby to the lowering of sovereign risk premie... Continue reading

Expansionary Austerity... Continue reading

The FOMC announced their decision to keep the target range for the federal funds rate at 0 - 1/4 percent. The statement revealed the FOMC intends to keep the federal funds rate low through late 2014 and continue its program to extend the average maturity of its holdings of securities... Continue reading

The IMF projects global growth to drop from close to 4 percent in 2011 to about 3.5 percent this year, increasing to 4.1 percent next year... Continue reading

The following are selected graphs from the FRBSF Economic Letter by the President of the Federal Reserve Bank of San Francisco, John Williams "The Slow Recovery It’s Not Just Housing" Continue reading

The economy officially fell into recession in December 2007, following several months of financial stress. However, the most severe economic consequences followed the extreme market movements in the fall of 2008. To a significant extent, the crisis is best understood as a classic financial panic--differing in details but fundamentally similar to the panics described by Bagehot and many others... Continue reading

The following are selected passages from the speech delivered by the President of the Federal Reserve Bank of Kansas City, Esther L. George "Looking Ahead: Financial Stability and Microprudential Supervision"... Continue reading