Discount Rate

The Only Question to Ask Ben Bernanke

Anyone who watches Bernanke’s Congressional testimony knows that lawmakers ignore his testimony because they’re too excited about Q&A—a chance to drill their vote-pandering messages in question form (e.g., Why does Fed help banks and not consumers?). Then Bernanke repeats the economic outlook and FOMC strategies he just laid out moments before. Today’s 2:15 ET press

WeeklyBasis 4/3/11: Pulp Fiction & The Fed

We’ve had five weeks of net flat rates, but it hasn’t come without wild intraday swings of about +/-.25%. Daily swings matter because people enter into real estate transactions and must lock rates daily. And when rates move so much each day, nobody knows if upside swings will stick. Five-week hindsight makes it seem simple,

No Fed rate or QE2 change. Rate advice for consumers.

Today’s Fed statement acknowledges economic recovery is on “firmer footing,” and while the Fed acknowledges inflationary concerns, it’s choosing to ignore inflation pressure for now and keeping overnight bank-to-bank target Fed Funds Rates at 0-.25%, and keeping the overnight Fed-to-bank Discount Rates at .75%. They also said they’d keep going with their second round of