TITLE

Stress Testing the Fed

AUTHOR(S)
CHRISTENSEN, JENS H. E.; LOPEZ, JOSE A.; RUDEBUSCH, GLENN D.
PUB. DATE
March 2014
SOURCE
FRBSF Economic Letter;3/24/2014, Vol. 2014 Issue 8, p1
SOURCE TYPE
Trade Publication
DOC. TYPE
Article
ABSTRACT
The Federal Reserve has purchased a large amount of longer-term bonds since December 2008. While these purchases have helped support a strengthening economy, the Fed's resulting financial position may incur significant declines in bond values and net income when interest rates rise. However, analyzing a range of possible future interest rate scenarios--and their associated probabilities--shows that potential losses associated with these declines are very likely to be manageable.
ACCESSION #
95262956

 

Related Articles

  • Fed Ups Rate to 4.25%; Removes "Accommodative". Ackerman, Andrew // Bond Buyer;12/14/2005, Vol. 354 Issue 32278, p2 

    This article focuses on an announcement made by policymakers of the U.S. Federal Reserve Board (FRB) regarding an increase in the federal funds rate by 4.25%. The FRB also decided to remove the word "accommodative" from their description of monetary policy. The Federal Open Market Committee...

  • Nine and counting. Thredgold, Jeff // Enterprise/Salt Lake City;7/11/2005, Vol. 35 Issue 2, p9 

    Focuses on the plan of the U.S. Federal Reserve to increase its short-term interest rate or the federal funds rate. Statement of the Open Market Committee on monetary tighthening; Program of the agency on short-term interest rate; Challenges of oil price control.

  • Rate rise respite. Debus, Keith // Enterprise/Salt Lake City;11/22/2004, Vol. 34 Issue 22, p10 

    Reports on the decision of the U.S. Federal Reserve Board to increase the federal funds rate, as of November 2004. Increase in the percentage of short-term interest rates; Impact of the deflation and recession of stock market on federal funds rate; Information on the monetary policy implemented...

  • Demand drives 10-year. Salcedo, Yesenia; McMahon, Chris // Futures: News, Analysis & Strategies for Futures, Options & Deri;Jul2005, Vol. 34 Issue 9, p22 

    Reports on the initiative of U.S. Federal Reserve Board to continue in raising the Federal fund rate. Strategy of China and India in buying U.S. dollars to maintain the trade imbalance; Inclusion of the Treasury notes; Appreciation of the investment and with the additional benefit of keeping...

  • Fed Keeps Interest Rates Unchanged.  // Chemical Market Reporter;8/18/2003, Vol. 264 Issue 5, p22 

    Reports on the election at the U.S. Federal Reserve Board to keep interest rates unchanged as its Federal Open Market Committee decided to keep its target for the federal funds rate at one percent.

  • Fed delivers seventh quarter-point interest rate increase.  // Long Island Business News (7/1993 to 5/2009);4/1/2005, Vol. 52 Issue 14, p10B 

    Reports on the U.S. Federal Reserve's decision to increase the federal funds interest rate up by a quarter-point to 2.75 percent in April 2005 as the agency continued its campaign to gradually nudge rates high enough to make sure that a rebounding economy does not trigger unwanted inflation....

  • US Reserve raises rates. Le Mesurier, Kriten; Tandukar, Amita // BRW;7/7/2005, Vol. 27 Issue 26, p81 

    Reports on the U.S. Federal Reserve Board's raising of a key interest setting, the federal funds rate, for the ninth successive time.

  • Significant highs within striking distance.  // Dow Theory Forecasts;8/15/2005, Vol. 61 Issue 33, p3 

    Comments on the increase in interest rates by the U.S. Federal Reserve Board. Vigilance to the near-term market action of Dow Industrials and Dow Transports; Consideration of bond yields; Observation of the performance of federal-funds rate in the futures market; Availability of stocks at...

  • Look for 8-percent growth this year, says Abby Cohen.  // Financial Executive;Jan/Feb1998, Vol. 14 Issue 1, p52 

    The article presents managing director of Golaman Sachs, Abby Joseph Cohen's economic forecast for 1998. In an address given by Cohen at the Federal Financial Institute's (FEI's) 16th Annual Current Financial Reporting Issues Conference on the United States (U.S.) stock expectation, Cohen stated...

Share

Read the Article

Courtesy of THE LIBRARY OF VIRGINIA

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics