Within the Fed, Worries of Deflation (at New York Times)
Fri, 30 Jul 2010 03:41:02 UTC
A Fed member warned that the agency’s current policies put the United States economy at risk of “Japanese-style” deflation.

Summary Box: Fed mulls ways to rev up growth (AP)
Fri, 30 Jul 2010 02:51:07 UTC
WHAT TO DO? Debate is intensifying at the Federal Reserve over how best to cope with a weakening recovery. ONE PLAN PUT FORWARD: James Bullard, president of the Federal Reserve Bank of St.

Fed s Bullard: deflation risk has risen (Reuters)
Fri, 30 Jul 2010 01:24:01 UTC
St. Louis Federal Reserve Bank President James Bullard said the risk of deflation in the United States has risen somewhat compared with the beginning of this year, the Nikkei newspaper reported.

Fed urged to opt for aggressive easing (at Financial Times)
Fri, 30 Jul 2010 00:40:10 UTC
The Federal Reserve should use aggressive quantitative easing if it needs to stimulate the economy further, because promising to keep rates lower for longer increased the risk that the US would fall into Japan-style deflation, the president of the St Louis Fed said on Thursday.

Fed s Bullard: U.S. deflation risk has risen-Nikkei (at Reuters)
Thu, 29 Jul 2010 23:59:18 UTC
St. Louis Federal Reserve Bank President James Bullard said the risk of deflation in the United States has risen somewhat compared with the beginning of this year, the Nikkei newspaper reported.

Fed reports paper profit on Bear and AIG bail-outs (at Financial Times)
Thu, 29 Jul 2010 23:30:17 UTC
The US public s hope of getting repaid for the bail-outs of Bear Stearns BSC and AIGin the financial crisis increased on Thursday after the Federal Reserve reported a paper profit for the first time on all the holdings of securities bought from the companies.

New York Fed: Toxic assets from AIG gaining value (AP)
Thu, 29 Jul 2010 22:53:57 UTC
Toxic assets the government bought during the bailouts of American International Group Inc. and Bear Stearns are finally gaining value, the Federal Reserve Bank of New York said Thursday.

GDP Preview: Consumer Conundrum (at TheStreet.com)
Thu, 29 Jul 2010 21:49:07 UTC
GDP growth is expected to slow to 2.5% in the second quarter, according to consensus projections, after rising 2.7% during the first quarter.

UPDATE - US Fed s balance sheet shrinks in latest week (at Reuters)
Thu, 29 Jul 2010 21:41:45 UTC
The U.S. Federal Reserve s balance sheet decreased in the latest week, Fed data released on Thursday showed. The balance sheet -- a broad gauge of Fed lending to the financial system -- was $2.308 trillion on July 28 versus $2.315 trillion on July 21.

Fed officials clash on need for more stimulus (Reuters)
Thu, 29 Jul 2010 21:40:47 UTC
Federal Reserve officials clashed on Thursday over whether the central bank should be more aggressive in supporting the stumbling economy and one said the Fed s current policy may be contributing to worryingly low levels of inflation.