Fed Will Begin Program to Purchase Mortgage-backed Securities in January

Dec. 30 — The Federal Reserve announced that it expects to begin operations in early January under the previously announced program to purchase mortgage-backed securities and that it has selected private investment managers to act as its agents in implementing the program. Under the program, the Federal Reserve will purchase mortgage-backed securities backed by Fannie Mae, Freddie Mac and Ginnie Mae. The program is being established to support the mortgage and housing markets and to foster improved conditions in financial markets more generally. (Read more.)

St. Louis Fed Announces Creation of Financial Crisis Timeline Web Site

Dec. 22 — The St. Louis Fed has created a new web site with information about the financial crisis. The site—The Financial Crisis: A Timeline of Events and Policy Actions—outlines events in financial markets from February 2007 to the present. The timeline includes brief descriptions of market events and actions by the Fed and other government agencies, along with links to press releases, SEC filings, congressional testimony and related St. Louis Fed articles.

Fed Approves Rules To Better Protect Credit Card Users

Dec. 18 — The Federal Reserve Board approved final rules that would better protect credit card users by prohibiting certain unfair acts or practices and improving the disclosures consumers receive in connection with credit card accounts and other revolving credit plans. (Read more.)

Burgundy Books Show Weakening Economic Conditions in Eighth District

The St. Louis Fed's December Burgundy Books reveal continued weakness in the St. Louis zone, softening in the Little Rock economy, a somewhat negative picture in the Louisville zone and considerable weakening in the Memphis regional economy. In conjunction with the release of the reports, St. Louis Fed economists Michael Pakko and Howard Wall provide audio commentary on economic conditions in each zone. Listen to St. Louis | Little Rock | Louisville | Memphis

FOMC Sets Target Range for Key Fed Rate

Dec. 16 —The Federal Open Market Committee decided today to establish a target range for the federal funds rate of 0 to 1/4 percent. Read the press release.

Fed Seeks Public Comment on Regulation Z

Dec. 5 — The Federal Reserve has proposed for public comment changes to Regulation Z (Truth in Lending) that would revise the disclosure requirements for mortgage loans.  The revisions would implement the Mortgage Disclosure Improvement Act, which was enacted in July 2008 as an amendment to the Truth in Lending Act. (Learn more.)

President Jim Bullard: Severe Recession Is Unlikely

Dec. 4 — In an interview with Bloomberg News this week, St. Louis Fed President Jim Bullard discussed a wide range of economic topics, from the current recession to the nuances of quantitative easing and additional Fed tools to fix the economy. Asked whether he stood by an earlier prediction that the U.S. economy might get by with a less severe 1990-91 style recession rather than a 1981-82 style recession, Bullard said he thought this outlook was still sound, even in light of recent economic data. “Right now, we’re looking for a pretty sharp decline in the fourth quarter, little less sharp in the first quarter, and then, hopefully, things will improve after that,” he said, adding that this scenario would be similar to 1990-91. “I don’t see a prolonged outcome materializing." (Watch the video on Bloomberg's YouTube channel.)

Beige Book: Business Conditions Continue To Weaken

Dec. 3 — Economic activity weakened in October and early November across all 12 Federal Reserve districts, according to the latest issue of the Beige Book. In the Eighth District, overall conditions have continued to weaken since the previous report. Hear more in an interview with Fed Economist Michael Pakko.

Fed To Purchase Obligations and Securities from GSEs

Nov. 25 — The Federal Reserve announced that it will initiate a program to purchase the direct obligations of housing-related government-sponsored enterprises (GSEs)—Fannie Mae, Freddie Mac and the Federal Home Loan Banks—and mortgage-backed securities backed by Fannie Mae, Freddie Mac and Ginnie Mae. This action is being taken to reduce the cost and increase the availability of credit for the purchase of houses, which in turn should support housing markets and foster improved conditions in financial markets more generally. (Read more.)

Fed Creates New Lending Program

Nov. 25 — The Federal Reserve Board announced the creation of the Term Asset-Backed Securities Loan Facility, a facility that will help market participants meet the credit needs of households and small businesses by supporting the issuance of asset-backed securities collateralized by student loans, auto loans, credit card loans and loans guaranteed by the Small Business Administration. (Read more.)

New York Fed's Timothy Geithner Will Be Treasury Secretary

Nov. 24 — President-elect Barack Obama and Vice President-elect Joe Biden officially announced key members of their economic team, naming Timothy Geithner as Secretary of the Treasury. Geithner currently serves as president and CEO of the New York Fed, where he has played a key role in formulating the nation's monetary policy. He joined the Department of the Treasury in 1988 and has served under three presidents. (Read more.)

Fed, Other Agencies Reach Agreement with Citigroup

Nov 23 — In a joint statement, the Fed, Treasury and FDIC said that the U.S. government is committed to supporting financial market stability, a prerequisite to restoring vigorous economic growth. In support of this commitment, the U.S. government on Sunday entered into an agreement with Citigroup to provide a package of guarantees, liquidity access and capital. (Read more.)

St. Louis Fed Earns Missouri Quality Award

Nov. 21 — The Federal Reserve Bank of St. Louis has won a Missouri Quality Award, one of only five organizations in the state to be so honored this year. Modeled after the prestigious Malcolm Baldrige National Quality Award, the Missouri Quality Award is recognized as one of the strongest state-level quality award programs in the nation. Contenders for the award are evaluated on criteria such as leadership, customer focus and strategic planning. (Read more.)

Agencies Issue Final Rule to Implement Unlawful Internet Gambling Enforcement Act

Nov. 12 — The Department of the Treasury and the Federal Reserve Board announced the release of a joint final rule to implement the Unlawful Internet Gambling Enforcement Act of 2006. The Act prohibits gambling businesses from knowingly accepting payments in connection with unlawful Internet gambling, including payments made through credit cards, electronic funds transfers and checks. (Read more.)

Fed Announces Reduced Number of Check Processing Sites and Accelerated Restructuring Schedule

Nov. 6 — The Federal Reserve announced that the Cleveland Fed will serve as the single paper check processing and adjustments site and that the Atlanta Fed will serve as the single electronic check processing site for the Federal Reserve System. The Reserve banks also announced they will use a flexible restructuring schedule that scales back or shifts operations at their other sites when paper check volumes no longer justify the existing operation. (Read more.)

Fed Warns Consumers against Fraudulent Solicitation

Nov. 4 — The Federal Reserve Board has alerted the public to instances of questionable solicitations directed at consumers. These solicitations promise consumers access to personal loans through a nonexistent Federal Reserve lending program. Under this fraudulent scheme, targeted individuals are told that that they can work through a broker to access a Federal Reserve program that extends sizable secured loans to consumers.  (Read more.)

2009 Fee Schedules for Payment Services Approved

Oct. 30 — The Federal Reserve Board announced the approval of fee schedules for payment services the Federal Reserve Banks provide to depository institutions (priced services), effective Jan. 2, 2009. (Read more.)

Fed, Central Banks in Brazil, Mexico, Korea and Singapore, Announce Swap Lines

Oct. 29 — The Federal Reserve, the Banco Central do Brasil, the Banco de Mexico, the Bank of Korea and the Monetary Authority of Singapore announced the establishment of temporary reciprocal currency arrangements (swap lines). These facilities, like those with other central banks, are designed to mitigate the difficulties in obtaining U.S. dollar funding in fundamentally sound and well-managed economies. (Read more.)

FOMC Cuts Rate Target to 1 Percent

Oct. 29 —The Federal Open Market Committee decided today to lower its target for the federal funds rate 50 basis points to 1 percent. Read the press release.

Fed, New Zealand Central Bank Announce Swap Line

Oct. 28 — The Federal Reserve and the Reserve Bank of New Zealand announced the establishment of a temporary reciprocal currency arrangement (swap line) to address ongoing, elevated pressures in U.S. dollar short-term funding markets.  This facility, like those already established with other central banks, is designed to help improve liquidity conditions in global financial markets. (Read more.)

Regulatory Agencies: Eligible Institutions Should Use Capital Purchase and Liquidity Guarantee Programs 

Oct. 20 — The federal banking and thrift regulatory agencies in a joint press release encouraged all eligible institutions to use the Treasury’s Capital Purchase Program and the FDIC’s Temporary Liquidity Guarantee Program. The two programs complement one another, and, through them, fresh capital and liquidity are available to foster new lending in our nation’s communities. (Read more.)

Fed Announces Revised Check Restructuring Schedule

Oct. 16 — Over the last several years, the Reserve banks have been restructuring their check processing infrastructure in response to rapidly declining paper volumes. In March, the Fed announced a plan that targeted a transition to four regional check processing locations by early 2010. As a result of dramatically declining paper check volumes, the Reserve banks have developed a revised schedule that will significantly accelerate the timeline announced in March. All current processing offices will be affected by the revised schedule, including those in the Eighth District. (Read more.)

Beige Book: Business Conditions Continue To Deteriorate

Oct. 15 — Economic activity weakened in September across all 12 Federal Reserve districts, according to the latest issue of the Beige Book. In the Eighth District, conditions have continued to weaken since the previous report. Hear more in an interview with Fed Economist Howard Wall.

Treasury, Federal Reserve and FDIC Issue Joint Statement

Oct. 14 — The following statement was made by Treasury Secretary Henry Paulson, Fed Chairman Ben Bernanke and FDIC Chairman Sheila Bair: "Today we are taking decisive actions to protect the U.S. economy, to strengthen public confidence in our financial institutions, and to foster the robust functioning of our credit markets. These steps will ensure that the U.S. financial system performs its vital role of providing credit to households and businesses and protecting savings and investments in a manner that promotes strong economic growth in the U.S. and around the world." (Read more.)

Board Provides Details on Commercial Paper Funding Facility

Oct. 14 — The Federal Reserve Board announced additional details about the Commercial Paper Funding Facility, including that it would begin funding purchases of commercial paper on Oct. 27, 2008. (Read more.)

Central Banks Announce Additional Liquidity Measures

Oct. 13 — To provide broad access to liquidity and funding to financial institutions, the Bank of England, the European Central Bank, the Federal Reserve, the Bank of Japan and the Swiss National Bank are jointly announcing further measures to improve liquidity in short-term U.S. dollar funding markets. (Read more.)

Fed Creates Commercial Paper Funding Facility

Oct. 7 — The Federal Reserve announced the creation of the Commercial Paper Funding Facility, which will complement the Fed's existing credit facilities to help provide liquidity to term funding markets. The facility will provide a liquidity backstop to U.S. issuers of commercial paper through a special purpose vehicle that will purchase three-month unsecured and asset-backed commercial paper directly from eligible issuers. (Read more.)

Fed To Pay Interest on Reserve Balances

Oct. 6 — The Federal Reserve announced that it will begin to pay interest on depository institutions' required and excess reserve balances. The payment of interest on excess reserve balances will give the Federal Reserve greater scope to use its lending programs to address conditions in credit markets while also maintaining the federal funds rate close to the target established by the Federal Open Market Committee. Consistent with this increased scope, the Fed also announced additional actions to strengthen its support of term lending markets. (Read more.)

Central Banks Take Measures To Address Funding Pressures over Quarter End

Sept. 26 — The Fed and other central banks have been employing coordinated measures designed to address the pressures in global money markets. Most recently, central banks have acted together to inject dollars into the overnight markets. Using their reciprocal currency arrangements with the Federal Reserve, several central banks are announcing the introduction of operations to provide U.S. dollar liquidity with a one-week maturity. These operations are designed to address funding pressures over quarter end. (Read more.)

Additional Central Banks Join Fed in Reciprocal Currency Arrangements

Sept. 24 — The Federal Reserve, the Reserve Bank of Australia, the Danmarks Nationalbank, the Norges Bank and the Sveriges Riksbank announced the establishment of temporary reciprocal currency arrangements (swap lines) to address elevated pressures in U.S. dollar short-term funding markets.  These facilities, like those already in place with other central banks, are designed to improve liquidity conditions in global financial markets.  (Read more.)

Stay Up-to-Date on Fed Actions with New Web Page

To get the latest on steps the Federal Reserve is taking to stabilize the economy and improve liquidity in the market, bookmark "Information Regarding Recent Federal Reserve Actions," a new web page on the Board of Governors web site.

Fed Board Approves Bank Holding Company Status for Goldman Sachs, Morgan Stanley

Sept. 21 — The Federal Reserve Board approved the applications of Goldman Sachs and Morgan Stanley to become bank holding companies. To provide increased liquidity support to these firms as they transition to managing their funding within a bank holding company structure, the Board authorized the New York Fed to extend credit to the two companies against all types of collateral that may be pledged at the Fed's primary credit facility for depository institutions or at the existing Primary Dealer Credit Facility; the Fed has also made these collateral arrangements available to Merrill Lynch. (Read the press release.) In a related statement, the Board said that, based on consultation with the Department of Justice, the transactions may be consummated immediately without the application of the five-day antitrust waiting period.

Fed, Central Banks Announce Measures to Improve Market Liquidity

Sept. 19 — The Federal Reserve announced two enhancements to its programs to provide liquidity to markets. One initiative will extend non-recourse loans at the primary credit rate to U.S. depository institutions and bank holding companies to finance purchases of high-quality asset-backed commercial paper from money market mutual funds. To further support market functioning, the Fed also plans to purchase from primary dealers federal agency discount notes, which are short-term debt obligations issued by Fannie Mae, Freddie Mac and the Federal Home Loan Banks. (Read more.) That announcement followed one on Sept. 18 by the Fed and several other central banks who are undertaking coordinated measures to address continued elevated pressures in U.S. dollar short-term funding markets. These measures, together with other actions taken recently by individual central banks, are designed to improve the liquidity conditions in global financial markets. (Read more.)