Steve Matthews Archive

Fed discussing how to ‘inject credit’

[Skip to the end] Problem is those things cut rates, they don’t ‘inject credit’ or alter net financial assets held by the non government sectors. It’s about price, not quantity. Fed Wrestles Over How to Inject Credit Into Economy by Steve Matthews Mar 18 (Bloomberg) — Fed officials will debate how to ...Read More

Bernanke to ‘deploy all tools’ except the right ones

[Skip to the end] The right tools have yet to be deployed: Lending to member banks on an unsecured basis (demanding collateral is redundant).   Providing banks with term financing at rates set by the FOMC (mortgage rates, etc. can be directly set as desired).   Prohibiting bank sales of financial assets ...Read More

More on latest Fed swap lines

[Skip to the end] The Fed is able to unilaterally lend (functionally unsecured) $30 million each to Mexico and Brazil?!?! There are far more sensible ways to restore prosperity. Last figures I saw indicate $522 billion in these loans that have been advanced so far. It’s looking more and more to me ...Read More

Fed communications

If conveying information is considered important for market function, why not just say it clearly and directly in a targeted announcement? Kohn Says Fed Is Trying to Signal When Views Shift `Materially’ 2008-01-05 11:15 (New York) By Scott Lanman and Steve Matthews (Bloomberg) Federal Reserve Vice Chairman Donald Kohn said the central ...Read More