Money Matters - Simplified

Federal Reserve

Sharp Drop in U.S. Consumer credit in July

U.S. economical data shows that borrowing of money by consumers has seen an unexpected fall in July resulting in a decline in credit card debt. The decrease in borrowing was evident for the first time this year with a straight decline in usage of credit card.

10-year Treasury yield rises from fresh low as stocks recover

After hitting a fresh historic low Tuesday, the 10-year U.S. Treasury yield has moved up.

Fed caps fee on debit card transaction

The Federal Reserve Board imposed a cap on the fee charged by banks from retailers when the customers use a debit card at their businesses.

U.S economy growing slower than expected: Fed

The Federal Reserve Bank acknowledged Wednesday that the U.S. economy was growing, but not at the rate at which it had expected.

Sanders: Fed lending 'jaw-dropping'

Washington -- Sen. Bernard Sanders, Ind-Vt., said the U.S. Federal Reserve's lending programs during the height of the financial meltdown require an "extensive" examination.

"The American people are finally learning the incredible and jaw-dropping details of the Fed's multitrillion-dollar bailout of Wall Street and corporate America," Sanders said, The Washington Post reported Thursday.

"Perhaps the most surprising is the huge sum that went to bail out foreign private banks and corporations. As a result of this disclosure, other members of Congress and I will be taking a very extensive look at all aspects of how the Federal Reserve functions."

Industrial output flat in October

Washington -- U.S. industrial production was unchanged in October after falling 0.2 percent in September, the Federal Reserve said Tuesday.

The Fed said manufacturing output rose 0.5 percent after rising 0.1 percent in September, a revised figure from a month ago.

Production at mines fell 0.1 percent after a gain of 0.1 percent in September. At the nation's utilities, production fell 3.4 percent due to an unseasonably warm October, which cut demand for heating.

Capacity utilization, measuring production as a percentage of manufacturing, mining and utilities operating at full steam, was flat at 74.8 percent in the month, 5.8 percentage points below the 1972 to 2009 average.

U.S. markets flat Friday

New York -- U.S. markets were mixed Friday after soaring in the previous session due to the Federal Reserve restarting a bond purchasing program.

The $600 billion program announced Wednesday pushed the Dow Jones industrial average to a height not seen since September 2008, the month Wall Street giant Lehman Brothers collapsed.

On Friday, the Department of Labor said the economy gained 151,000 jobs in October, which was not enough to lower the unemployment rate, which held at 9.6 percent.

In early afternoon trading, the DJIA gave up 8.59 points, 0.08 percent, to 11,426.25. The Standard & Poor's 500 added 0.25 percent, 3.11 points, to 1,224.17. The Nasdaq composite of tech-dominated stocks gained 0.01 percent, 0.14, to 2,577.48.

Germany criticizes U.S. Fed

Berlin -- German Finance Minister Wolfgang Schauble harshly criticized the U.S. Federal Reserve's $600 billion quantitative easing program announced Wednesday.

Schauble said the United States had broken a promise made in June at the Group of 20 summit in Toronto to tighten monetary policy, EUobserver reported Friday.

"That was the common policy, that all developed countries, including the United States … explicitly obliged to undertake," Schauble said in televised remarks.

With a G20 summit scheduled next week in Seoul, Schauble said, "We will speak critically about this in bilateral talks with our American friends, but also at the G20 summit in South Korea."

Markets post quick gains Thursday

New York -- U.S. markets surged early Thursday on encouraging data backed by a U.S. Federal Reserve decision to pump $600 billion into the economy through Treasury bonds.

The Fed said Wednesday it would buy $75 billion in long-term bonds per month through June. The decision was made after reports earlier in the week showed gains in U.S. and Chinese manufacturing and in service-oriented U.S. business activity.

Equity markets rose across Asia and Europe Thursday morning. In midmorning trading on Wall Street, the Dow Jones industrial average added 156.63 points or 1.4 percent to 11,371.80. The Standard & Poor's 500 index gained 14.99 or 1.25 percent to 1,212.95. The Nasdaq composite index jumped 30.044 or 1.2 percent to 2,570.71.

Markets waver ahead of Fed decision

New York -- U.S. markets dropped Wednesday after gaining early as investors waited for the Federal Reserve's afternoon announcement on monetary policy.

Expectations were high the Fed will announce a limited round of bond purchases. But how much of a boost that would give markets, if any, remains to be seen. When investors anticipate a beneficial policy decision, they often make adjustments ahead of the actual announcement.

In early afternoon trading, the Dow Jones industrial average lost 22.93 points, 0.2 percent to 11,165.79. The Standard & Poor's 500 index fell 0.28 percent, 3.29, to 1,190.28. The Nasdaq composite index shed 0.34 percent, 8.53, to 2,524.99.

The benchmark 10-year Treasury note gained 16/32 to yield 2.536 percent.