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The article discusses an unintended decline in the U.S. federal funds rate. The Federal Reserve adjusts this rate when it wants to affect interest rates throughout the U.S. economy. A drop from 0.13% to 0.09% over a one-week period without any intervention by the Fed, though, has raised questions about whether the Fed will be able to manipulate the rate when it feels the need to.

The article discusses the impact of rising mortgage rates in the U.S. On December 9, 2010 the 30-year rate reached 4.61%, the highest level in several months. A spate of mortgage-refinancing activity by homeowners has likely been quelled by rising rates, which have also complicated efforts by the U.S. Federal Reserve to support the housing market.

The article reports that interest rates on U.S. government securities have risen despite initiation of a $600 billion security-purchase program by the U.S. Federal Reserve aimed at driving rates lower. Yields on government securities had fallen significantly in anticipation of the Fed's initiative, though, and despite the rise remain lower than in the spring of 2010.

The article discusses implications of the U.S. Federal Reserve's decision to buy $600 billion in U.S. government securities over an eight-month period. An anticipated decline in yields could prompt investors to move funds from government bonds into riskier assets including stocks. Prices in futures markets indicate investors don't expect the Fed to start raising interest rates before June, 2012.

The article reports that the U.S. Federal Reserve raised the interest rate on emergency loans it makes to banks. Both stocks and U.S. Treasury securities fell on the news. Craig Peckham of Jefferies & Co. said the move was one step in a multi-step process by the Fed to tighten up what has been an accommodative monetary policy.

The article discusses investors' tepid response to interest rate cuts by the U.S. Federal Reserve. During the week of January 21, 2008 the Federal Reserve enacted the largest rate cut since 1982, yet stocks have not responded favorably. Some believe that problems facing U.S. financial markets are too big for rate cuts to deal with quickly.

The article discusses the recovering U.S. economy. Economists expect that gross domestic product for the third quarter of 2009 increased by almost 3%, with indications that the fourth quarter was even more robust. Both Princeton University economist Alan Blinder and Paul Kasriel of Northern Trust think growth will prompt the U.S. Federal Reserve to hike interest rates sooner than some expect.

The article discusses the U.S. Federal Reserve's policy with respect to interest rates. Futures prices suggest investors expect the Fed will begin raising rates before September, 2010. History has shown that stock prices tend to fall about one-half year before rates rise. Given the unusual economic environment in 2009, the impact on prices of higher rates could be especially pronounced.

The article discusses renewed strength in the U.S. dollar. In December, 2009 the dollar closed below $1.48 per euro for the first time on more than 30 days. Fears that the Federal Reserve could raise interest rates sooner than expected have helped the dollar, as have crises that prompt investors to find haven in the dollar.

The article discusses the U.S. Federal Reserve's holdings of mortgage-backed securities (MBS). Totaling some $740 billion, these MBS could potentially be used to combat inflation. By selling MBS the Fed would cause interest rates to rise, thus tamping down the housing market and by extension the U.S. economy.

The article discusses prospects for a hike in interest rates from the U.S. Federal Reserve. The prices of interest-rate futures suggest traders believe the Fed could raise rates by May or August of 2010. However, futures prices have been misleading in the past. Economist Lou Crandall foresees little in the way of rate hikes until the economy has exhibited several months of strength.

The article discusses the market for U.S. Treasury bonds. Rates on bonds have risen partly due to fears of inflation. Although the Federal Reserve has been buying bonds in an effort to keep rates down, those actions could provoke inflation that pushes rates even higher. At some point rising interest rates could have a negative impact on the economy.

The article discusses interest rates in the U.S. After the the rate on ten-year Treasury notes topped 3% in March, 2009, the Federal Reserve announced a program to buy Treasury bonds that drove the rate down sharply. Since then it has risen back up to 3%. If the Fed truly intends to keep the ten-year rate below that level, it may have to act again soon.

The article discusses options available to the U.S. Federal Reserve for invigorating the economy now that the target federal funds rate is near 0%. Although various lending programs have seen the Fed's assets approach almost $2 trillion, economist Jan Hatzius believes it needs to buy substantially more assets in the financial markets in order to prevent deflation.

The article discusses the impact of a reduction in the federal-funds rate that the U.S. Federal Reserve is expected to enact on October 29, 2008. Although rate cuts can usually be expected to stimulate economic activity, within the present economic climate that can't be expected to happen until the demand for money picks up.

The article discusses developments in the U.S. economy. Falling oil prices and a strengthening dollar have helped drive down inflation. However, interest rates for various forms of consumer credit have not declined much in response to rate cuts by the U.S. Federal Reserve. Unless credit conditions improve, the U.S. could enter a recession.

The article discusses factors that could persuade the U.S. Federal Reserve to lower interest rates. The threat of inflation has abated some, due partly to falling oil prices and a strengthening U.S. dollar. An unexpectedly large increase in the unemployment rate for August, 2008 could also help inspire a rate cut.

The article notes that the U.S. monetary base--consisting of all currency and bank reserves--grew just 2.1% in July, 2008 on a year-over-year basis. Such growth is well below historical averages, and lends strength to the argument that the U.S. Federal Reserve should be in no hurry to raise interest rates.

The article discusses benefits and drawbacks to a strengthening U.S. dollar. When the dollar appreciates U.S. consumers find foreign products more affordable, and the Federal Reserve becomes less likely to raise interest rates. However, a strong dollar makes U.S. exporters less competitive in overseas markets. In addition, some believe the dollar's strength is largely a function of expectations for weak economic conditions abroad.

The article discusses the seeming ineffectiveness of rate cuts imposed by the U.S. Federal Reserve. Since September, 2007, the Fed has reduced short-term rates by a cumulative 3.25 percentage points. Yet mortgage rates are higher than they were when the rate-cutting began, as is the cost of corporate borrowing.

The article discusses challenges faced by U.S. Federal Reserve chairman Ben Bernanke. Rising oil prices, falling home prices, growing unemployment, and difficulties at Fannie Mae and Freddie Mac have all demanded his attention. Circumstances suggest that it could be difficult for him to either raise or lower interest rates any time soon.

The article discusses the role of the U.S. Federal Reserve in creating financial "bubbles." Some believe the failure of the Fed to sharply raise interest rates at opportune moments has helped create bubbles first in technology stocks, then in housing and commodities. Although rising commodity prices have provoked higher inflation, the Fed indicated on June 25, 2008 it was in no rush to raise rates.

The article discusses language the U.S. Federal Reserve is likely to use in its communique about interest-rate policy to be issued June 25, 2008. Following a discussion of the U.S. economy and risks it faces, the Fed will probably use somewhat indirect terms to signal it views on future movements in interest rates.

The article discusses a seeming contradiction between the Federal Funds futures market and U.S. Federal Reserve policy. Futures prices reflect expectations that the Federal Reserve will raise interest rates at least twice through November, 2008. Some investors believe--and the Federal Reserve has intimated--that interest-rate policy will not be so aggressive.

The article discusses prospects for an interest-rate increase by the U.S. Federal Reserve. Prices in the federal-funds futures markets indicate investors expect rates to rise within the next year. However, the author cites instances where similar expectations never came to fruition. In his view the Federal Reserve is not likely to raise rates any time soon.

The article discusses divergent interest rate policies being pursued by the U.S. Federal Reserve and other central banks. In the U.S. rates have been cut aggressively since September, 2007. The Bank of England has implemented only two rate cuts, the Bank of Japan and the European Central Bank have not cut rates at all, and the Reserve Bank of Australia has raised rates. Several competing explanations exist.

The article discusses recent strength displayed by the U.S. dollar. As the U.S. economy has showed signs of faltering, the dollar has declined relative to other currencies. Expectations that the U.S. Federal Reserve will be finished cutting interest rates by the summer of 2008, however, coupled with fears that European interest rates could soon fall, have helped buoy the dollar.

The article discusses a news conference held by U.S. Federal Reserve Chairman Ben Bernanke. He said that the Fed would conclude its $600 billion program of buying U.S. Treasury bonds in June, 2011, and that it would continue to maintain low interest rates. Bernanke also expressed sympathy for consumers suffering from rising gas prices and a high rate of unemployment.