Insights

 

Observation Deck
February 01, 2010 Posted by

The Federal Reserve decided on January 27 to keep interestrates at historically low levels despite pronouncing a continued pickup in economic activity and a deceleration of job losses. Faced with a double digit unemployment rate, tight credit conditions, and real estate price depreciation, the decision was not surprising. However, the federal funds rate has been pegged between 0 percent and 0.25 percent since December 2008, and the Fed’s ongoing comment that economic conditions “are likely to warrant exceptionally low levels of the federal funds rate for an extended period” does cause us to re-ask the following questions: “What does the Fed mean by ‘extended period,’ and how should client portfolios be positioned?” 

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Economic Outlook
October 06, 2009 Posted by
Last month the Federal Deposit Insurance Corporation (FDIC) announced a pilot deal to sell $1.3 billion in mortgage securities in exchange for $856.2 million from the debunked Franklin Bank after the lender was taken over by the agency.
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