Collegian Oct 14 2008.Pdf (4.444Mb)

Total Page:16

File Type:pdf, Size:1020Kb

Collegian Oct 14 2008.Pdf (4.444Mb) TWO Killed by Wildfires in lOs angeles | Page 6 THE ROCKY MOUNTAIN Fort Collins, Colorado COLLEGIAN Volume 117 | No. 46 Tuesday, October 14, 2008 www.collegian.com THE STUDENT VOICE OF COLORADO STATE UNIVERSITY SINCE 1891 MANIC MONDAY Musgrave, Markey debate agriculture By TRevOR SIMOnTOn Bill, for which Musgrave was a “lead The Rocky Mountain Collegian negotiator.” “Farmers need a safety net,” she Incumbent congresswoman said. “That means they need direct Marilyn Musgrave, R-Colorado, payments and loan programs.” defended herself Monday night Musgrave also told stories about against Democratic opponent Betsy her days growing up on a sugar Markey’s accusations that she has beet farm and how she has learned done nothing to solve immigration through personal struggle the im- and labor problems as a representa- portance of water conservation. tive for Colorado’s Fourth District. “It breaks my heart when farm- “As a ranking Republican, I have land dries up,” she said. worked hard to get guest workers Both candidates agreed that wa- working legally, so please be correct ter storage is an important issue for in your statements,” she said. Colorado farmers. Markey then countered the de- “When you touch water you fense. touch everything,” Markey said, “But nothing has passed,” she quoting the last Democrat to hold said. office in Colorado’s Fourth District Without hesitation, a Musgrave back in the early 1970s, Wayne As- rebuttal: “Ken Salazar is in the Sen- pinall. ate, Betsy. I can only control the They also agreed on the impor- House,” she said, referring to the tance but impermanence of corn- Democratic Colorado senator, for oil ethanol and the need for further whom Markey acted as regional di- development and diversification of rector for in recent campaigns. renewable energy. The Fort Morgan audience re- Markey specifically cited the sponded with applause and cheers need to upgrade the electrical grids for their hometown candidate, in Colorado. Musgrave. “Studies show that up to 20 The two women are battling percent of our electricity can come for the Fourth Congressional Dis- from wind power,” she said. “It will trict seat of Colorado, which, after cost billions to convert, but when 30 years of Republican control, has you compare the $700 billion we become one of the most intensely spend annually on foreign oil, it be- competitive seats in the House of comes very worthwhile.” Representatives, some political Musgrave closed with thanks to analysts say.The debate Monday fo- her home audience and a reitera- cused on Colorado agriculture and tion of the importance of support- “rural America.” ing agriculture. “In looking at our dependence Markey closed with a pledge on foreign oil, we need to make sure to work hard and attend town hall that we never have a foreign depen- meetings in all 18 counties in the dence for food,” Musgrave said. Fourth District if she were elected. Both candidates talked about “I will be looking people in the their respective histories as small eye,” she said. “You have to listen to business owners, and both vocal- the people.” ized the importance of agriculture Elections Beat Reporter Trevor to the national economy, stressing Simonton can be reached at news@ the importance of the 2008 Farm collegian.com. RICHARD DReW | AP Trader Joe Acquafredda smiles as he works on the floor of the New York Stock Exchange, Monday. Wall Street stormed back from last week’s devastating losses Monday, sending the Dow Jones industrials soaring a nearly inconceivable 936 points after major governments’ plans to support the global banking system reassured distraught investors. Nelson pushes for international alternative Dow Jones roars back crop-raising solutions By TyleR OklAnD The Rocky Mountain Collegian from worst week ever Rebecca Nelson, a Cornell Uni- versity agriculture professor, ad- dressed weak funding for interna- By TIM PARADIS of stock market carnage. tion to Washington to work out a tional agricultural research Monday The Associated Press While no one was saying the plan to get loans, the lifeblood of at CSU, saying researchers must uti- worst was over for the staggering the economy, moving again. And lize alternative methods of provid- NEW YORK – Wall Street financial system or troubled econ- it followed signals that European ing crop-raising solutions for third- stormed back after its worst week omy, buyers returned to the stock governments would put nearly $2 world countries in an increasingly ever and staged the biggest single- market with gusto, with some say- trillion on the line to protect their expensive research environment. day stock rally since the Great ing stocks had been driven down own banks. Nelson said funding shortfalls Depression on Monday, catapult- to fire-sale prices. The Dow gained more than 11 across the board in agricultural ing the Dow Jones industrials to a The surge came as executives percent, its biggest one-day rally research initiatives that aim to im- 936-point gain and finally offering from leading banks were sum- prove food production and security relief from eight consecutive days moned by the Bush administra- See DOW on Page 3 in third-world countries leave the impoverished nations in an unsta- ble environment. In her speech, which headlined the 9th annual Thornton Massa BRAnDOn IWAMOTO | COLLEGIAN Lecture, Nelson said the percentage Dr. Rebecca Nelson, an associate of international agricultural support professor of plant pathology, plant has decreased fourfold. breeding, and international agricul- ROTC teams take top honors “Traditional agricultural sys- ture at Cornell University, speaks at tems ideally need to move towards the Lory Student Center Theater on Monday evening. By JOHnny HART video ecologically intensive agricultural The Rocky Mountain Collegian Visit collegian.com systems, in other words doing more to see a video of the with less,” she said. “The issue is compounded by Two CSU Army ROTC bat- “Rocky Mountain Nelson is the program director the fact that recently, farmers in talion teams, dubbed the Ram Ranger Challenge.” of the McKnight Foundation Col- developing countries are more and Battalion, placed first and laborative Crop Research Program, more unable to pay for fertilizer,” second at the annual “Rocky which is one of the few healthy or- Nelson said. Mountain Ranger Challenge” ercise major and cadet Todd ganizations implementing interna- Since increasingly expensive held Saturday and Sunday at Hunsicker said. tional agriculture research in third- petroleum is necessary to produce Camp Guernsey, Wyo. Senior liberal arts major world countries. the energy-intensive nitrogen in The Alpha-team and Bra- and cadet Rick Smith said be- Her goals include possible ge- fertilizers, the price of fertilizer has vo-team finished the two-day fore this year’s competition, netic modification of cereal crops skyrocketed past the financial reach event with the top two ranks the battalion placed just once in an attempt to make them more of many farmers throughout Africa, from a field of 11, includ- since 1999, finishing first in pest- and disease-resistant. She Asia and Latin America. ing teams from University of 2006. aims to increase nutrition for rural The growing need for financial Colorado and the University “Compared to how we did workers in impoverished countries, aid and support in such countries COuRTeSy Of CSu ROTC of Wyoming. last year, it’s very exciting,” who often resort to selling their has allowed organizations like the “It’s not a normal thing for sophomore history major and CSU ROTC Alpha and Bravo teams celebrate mineral-rich crops, which can lead McKnight Foundation to focus their a ‘Bravo team’ to be placing finishing in first and second place at the “Rocky to malnutrition and poor growth in second,” junior health and ex- See ROTC on Page 3 Mountain Ranger Challenge” in Camp Guernsey, children. See CROPS on Page 3 Wyo. on Sunday. Page 6 Page 5 Page 6 Hickenlooper, 1972 movie captures Professor honored Peña and Ritter essence of Munich with Packard Award evaluate green Olympic crisis for excellence in practices, rally for ‘One day in September’ building capacity Obama receives four stars 2 Tuesday, October 14, 2008 | The Rocky Mountain Collegian WEATHER CALENDAR Women at Noon Noon to 1 p.m. CAMPUS EYE Today Lory Student Center Rm 214-216 Today Ramskeller’s 40th Anniversary The Kathryn T. Bohannon Partly cloudy Noon to 3 p.m. Women at Noon program The Ramskeller and ASAP are will present “Celebrating presenting to the CSU student, Gay, Lesbian, Bisexual, and 56 | 34 alumni, faculty, and staff, a week- Transgender (GLBT) Activism in long celebration of their 40th Northern Colorado.” Wednesday anniversary. Join us as we learn about the Everyone is invited to enjoy the successes and challenges Sunny events, and all events are free. these activists have faced. French Film Night Why Going Green Means 59 | 37 7 to 8:45 p.m. Going Nuclear Eddy Building Rm 212 4 to 5 p.m. Thursday The Department of Foreign Clark A, 103 Languages and Literatures is Author Gwyneth Cravens will Sunny pleased to present “La Grande be visiting CSU to discuss her Séduction” (Seducing Dr. Lewis). journey from skepticism and 66 | 39 The fi lm is free and open to the fear to an understanding that public. nuclear power is the only large- scale, non-greenhouse-gas Alternative Spring Break emitting electricity source that Session can be considerably expanded 7 to 8 p.m. while maintaining only a small Lory Student Center Grey Rock environmental footprint. Room Got plans for spring break? Free Waltz and Polka lesson Forgo the usual and embrace an 7:15 to 8:15 p.m. 7 p.m. opportunity to leave a legacy and Lory Student Center, Cherokee Park Ballroom Ramblers have an experience of a lifetime.
Recommended publications
  • Chairman Jay Clayton, February 1, 2018 to February 28, 2018
    Chairman Jay Clayton Public Calendar February 1, 2018 to February 28, 2018 Thursday, February 1, 2018 9:00 am Meeting with staff 9:30 am Meeting with staff 10:00 am Meeting with staff 10:30 am Meeting with staff 12:00 pm Meeting with Commissioner 1:00 pm Meeting with Silicon Valley Bank, including: Greg Becker, CEO, and Michael Zuckert, General Counsel; and Kara Calvert, Partner, Franklin Square Group 2:00 pm Closed Commission Meeting 2:30 pm Meeting with staff 3:00 pm Meeting with staff 3:30 pm Meeting with staff Friday, February 2, 2018 8:30 am Phone call with Senator Sherrod Brown 9:00 am Meeting with the Capital Market Authority (CMA) of Saudi Arabia, including: Ms. Mona Al-Nemer, Manager, Investment Products Development Department; and Ms. Hanan Al-Shehri, Officer, Investment Products Development Department 11:30 am Speaking engagement at the Mid-Atlantic Security Traders Association’s 2018 Winter Conference Monday, February 5, 2018 11:00 am Meeting with Commissioner 12:00 pm Meeting with staff 2:00 pm Meeting with Greg Gilman, President, National Treasury Employees Union Chapter 293 4:00 pm Meeting with Senator Heidi Heitkamp 6:30 pm Meeting with Tom Ayres, Department of the Air Force General Counsel Nominee Tuesday, February 6, 2018 8:30 am Phone call with Jerome Powell, Governor, Federal Reserve Board 10:00 am Hearing before the Senate Committee on Banking, Housing, and Urban Affairs 2:00 pm Meeting with staff 2:30 pm Meeting with staff 3:00 pm Meeting with staff 4:00 pm Meeting with Commissioner 4:45 pm Meeting with Commissioner
    [Show full text]
  • Too Big to Fool: Moral Hazard, Bailouts, and Corporate Responsibility Steven L
    University of Minnesota Law School Scholarship Repository Minnesota Law Review 2017 Too Big to Fool: Moral Hazard, Bailouts, and Corporate Responsibility Steven L. Schwarcz Follow this and additional works at: https://scholarship.law.umn.edu/mlr Part of the Law Commons Recommended Citation Schwarcz, Steven L., "Too Big to Fool: Moral Hazard, Bailouts, and Corporate Responsibility" (2017). Minnesota Law Review. 94. https://scholarship.law.umn.edu/mlr/94 This Article is brought to you for free and open access by the University of Minnesota Law School. It has been accepted for inclusion in Minnesota Law Review collection by an authorized administrator of the Scholarship Repository. For more information, please contact [email protected]. Article Too Big To Fool: Moral Hazard, Bailouts, and Corporate Responsibility Steven L. Schwarcz† INTRODUCTION There is an increasing worldwide regulatory focus on trying to end the problem of too big to fail (TBTF)1: that systemically important financial firms2 might engage in excessive risk-taking because they would profit from success and be bailed out by the government to avoid a failure. This is primarily a problem of moral hazard;3 persons protected from the negative conse- quences of their risky actions will be tempted to take more 4 risks. Excessive risk-taking was widely seen as one of the pri- † Stanley A. Star Professor of Law & Business, Duke University School of Law; Founding Director, Duke Global Financial Markets Center; Senior Fel- low, the Centre for International Governance Innovation. E-mail: [email protected]. I thank Emilios Avgouleas, Daniel Awrey, John Buley, Lee Reiners, and participants in a Finance & Law Series faculty workshop at Duke University and at the Hazelhoff Guest Lecture, Leiden University, for valuable comments.
    [Show full text]
  • Monetary Policy Decision Making
    The Federal Reserve in the 21st Century Monetary Policy Decision Making Andrea Tambalotti, AVP – Macroeconomic and Monetary Studies Function Research and Statistics Group March 27, 2017 The views expressed in this presentation are those of the presenter and not necessarily those of the Federal Reserve Bank of New York or the Federal Reserve System Outline . Monetary policy refers to the actions undertaken by a central bank to influence the availability and cost of money and credit to help promote national economic goals . In what follows we will review . the institutional framework and organization of the Federal Reserve System (“the Fed”), the central bank of the U.S. the Fed’s goals and objectives (the so-called dual mandate) . We will discuss how the Fed pursues its dual mandate in terms of strategy and tactics . And close with an assessment of issues and concerns in the current policy debate, as reflected in recent FOMC communication 2 The Federal Reserve System: Institutional Structure for internal use only The Federal Reserve System . 12 Federal Reserve Banks, the “regional Feds” . part private, part government institutions . each with a Board of Directors (9 members) . who appoint the president and officers of the FRB subject to approval by the Board of Governors . Board of Governors of the Federal Reserve System, “the Board” . in Washington DC . up to 7 members appointed by POTUS and confirmed by Senate . currently (March 2017) five members, 2 (soon to be 3) vacancies . Federal Open Market Committee, the FOMC . Around 2900 member commercial banks Depending on the context, the shorthand “Fed” can refer to the whole system, or the Board in Washington, or the FOMC… 4 The 12 Fed Districts 5 The FOMC .
    [Show full text]
  • Resolution Techniques to Protect Financial Stability
    CIGI Papers No. 184 — August 2018 Extending Bankruptcy- resolution Techniques to Protect Financial Stability Steven L. Schwarcz CIGI Papers No. 184 — August 2018 Extending Bankruptcy- resolution Techniques to Protect Financial Stability Steven L. Schwarcz CIGI Masthead Executive President Rohinton P. Medhora Deputy Director, International Intellectual Property Law and Innovation Bassem Awad Chief Financial Officer and Director of Operations Shelley Boettger Director of the Global Economy Program Robert Fay Director of the International Law Research Program Oonagh Fitzgerald Director of the Global Security & Politics Program Fen Osler Hampson Director of Human Resources Laura Kacur Deputy Director, International Environmental Law Silvia Maciunas Deputy Director, International Economic Law Hugo Perezcano Díaz Director, Evaluation and Partnerships Erica Shaw Managing Director and General Counsel Aaron Shull Director of Communications and Digital Media Spencer Tripp Publications Publisher Carol Bonnett Senior Publications Editor Jennifer Goyder Publications Editor Susan Bubak Publications Editor Patricia Holmes Publications Editor Nicole Langlois Publications Editor Lynn Schellenberg Graphic Designer Melodie Wakefield For publications enquiries, please contact [email protected]. Communications For media enquiries, please contact [email protected]. @cigionline Copyright © 2018 by the Centre for International Governance Innovation The opinions expressed in this publication are those of the author and do not necessarily reflect the views of the Centre for International Governance Innovation or its Board of Directors. This work is licensed under a Creative Commons Attribution — Non-commercial — No Derivatives License. To view this license, visit (www.creativecommons.org/licenses/by-nc-nd/3.0/). For re-use or distribution, please include this copyright notice. Printed in Canada on paper containing 100% post-consumer fibre and certified by the Forest Stewardship Council® and the Sustainable Forestry Initiative.
    [Show full text]
  • Understanding the Financial Crisis Eamonn K
    NORTH CAROLINA BANKING INSTITUTE Volume 13 | Issue 1 Article 3 2009 Wall Street Meets Main Street: Understanding the Financial Crisis Eamonn K. Moran Follow this and additional works at: http://scholarship.law.unc.edu/ncbi Part of the Banking and Finance Law Commons Recommended Citation Eamonn K. Moran, Wall Street Meets Main Street: Understanding the Financial Crisis, 13 N.C. Banking Inst. 5 (2009). Available at: http://scholarship.law.unc.edu/ncbi/vol13/iss1/3 This Article is brought to you for free and open access by Carolina Law Scholarship Repository. It has been accepted for inclusion in North Carolina Banking Institute by an authorized administrator of Carolina Law Scholarship Repository. For more information, please contact [email protected]. WALL STREET MEETS MAIN STREET: UNDERSTANDING THE FINANCIAL CRISIS EAMONN K. MORAN* TABLE OF CONTENTS I. INTRODUCTION .............................................................................. 7 II. THE ORIGINS OF THE CREDIT CRISIS ...................................... 13 A. Federal Reserve Interest Rate Reductions ................. 13 B. The Nature of the Lender - Borrower Relationship ..... 15 C. Overextended Homeowners ........................................ 16 D. The Rise of Subprime Lending - The Essentials ..... 20 E. The Politics of Homeownership ................................... 25 F. The Current Housing Crisis: Reverberating Effects of Subprim e Lending ................................................... 30 III. FINANCIAL INNOVATION: THE GROWTH OF COMPLEX FINANCIAL INSTRUMENTS
    [Show full text]
  • Hispanic Chamber's Latino Leadership
    FEDERAL RESERVE BANK OF KANSAS CITY – OKLAHOMA CITY BRANCH Latino Leadership Class VII Greater Oklahoma City Hispanic Chamber of Commerce Federal Reserve Bank of Kansas City Oklahoma City Branch May 12, 2020 FEDERAL RESERVE BANK OF KANSAS CITY The Fed, Monetary Policy, and the U.S. Economy Hispanic Chamber’s Latino Leadership Class VII May 12, 2020 Chad Wilkerson Vice President and Oklahoma City Branch Executive *The views expressed herein are those of the presenter only and do not necessarily reflect the views of the Federal Reserve Bank of Kansas City or the Federal Reserve System. FEDERAL RESERVE BANK OF KANSAS CITY Structure & Functions of the Federal Reserve The “Fed” consists of three main entities: Primary responsibility areas: • Board of Governors: 7 members appointed by U.S. President • Monetary policy • Federal Reserve Banks: 12 total; semi-independent by design • Bank regulation • Federal Open Market Committee: 19 members; 12 voting • Financial services 3 FEDERAL RESERVE BANK OF KANSAS CITY The Federal Reserve’s Role in Monetary Policy • Dual Mandate from U.S. Congress: 1) Maximum employment 2) Price stability • Federal Open Market Committee (FOMC): Board of Governors Reserve Bank Presidents • Jerome H. Powell, Chairman • John C. Williams, New York, Vice Chairman • Richard H. Clarida, Vice Chairman • Patrick T. Harker, Philadelphia • Randal K. Quarles, Vice Chairman of Supervision • Robert S. Kaplan, Dallas • Lael Brainard • Neel Kashkari, Minneapolis • Michelle W. Bowman • Loretta J. Mester, Cleveland • Open • Thomas I. Barkin, Richmond • Open • Raphael W. Bostic, Atlanta • Mary C. Daly, San Francisco • Charles L. Evans, Chicago • James Bullard, St. Louis • Esther L. George, Kansas City • Eric Rosengren, Boston 4 *Permanent voters in bold; 2020 rotating voters in red; 2021 rotating voters in blue FEDERAL RESERVE BANK OF KANSAS CITY The Oklahoma City Branch of the Federal Reserve Bank of Kansas City • 2020 Is Our Centennial! • Functions and purposes ~ 50 staff • Research on U.S.
    [Show full text]
  • Minutes of the Federal Open Market Committee January 26–27, 2021
    _____________________________________________________________________________________________ Page 1 Minutes of the Federal Open Market Committee January 26–27, 2021 A joint meeting of the Federal Open Market Committee Ann E. Misback, Secretary, Office of the Secretary, and the Board of Governors was held by videoconfer- Board of Governors ence on Tuesday, January 26, 2021, at 1:00 p.m. and con- tinued on Wednesday, January 27, 2021, at 9:00 a.m.1 Matthew J. Eichner,2 Director, Division of Reserve Bank Operations and Payment Systems, Board of PRESENT: Governors; Michael S. Gibson, Director, Division Jerome H. Powell, Chair of Supervision and Regulation, Board of John C. Williams, Vice Chair Governors; Andreas Lehnert, Director, Division of Thomas I. Barkin Financial Stability, Board of Governors Raphael W. Bostic Michelle W. Bowman Daniel M. Covitz, Deputy Director, Division of Lael Brainard Research and Statistics, Board of Governors; Sally Richard H. Clarida Davies, Deputy Director, Division of International Mary C. Daly Finance, Board of Governors; Michael T. Kiley, Charles L. Evans Deputy Director, Division of Financial Stability, Randal K. Quarles Board of Governors Christopher J. Waller Jon Faust, Senior Special Adviser to the Chair, Division James Bullard, Esther L. George, Loretta J. Mester, of Board Members, Board of Governors Helen E. Mucciolo, and Eric Rosengren, Alternate Members of the Federal Open Market Committee Joshua Gallin, Special Adviser to the Chair, Division of Board Members, Board of Governors Patrick Harker, Robert S. Kaplan, and Neel Kashkari, Presidents of the Federal Reserve Banks of William F. Bassett, Antulio N. Bomfim, Wendy E. Philadelphia, Dallas, and Minneapolis, respectively Dunn, Burcu Duygan-Bump, Jane E.
    [Show full text]
  • In Gold We Trust 2020
    Über uns 1 May 27, 2020 Compact Version Download the Extended Version (350 Pages) at www.ingoldwetrust.report The Dawning of a Golden Decade Ronald-Peter Stöferle & Mark J. Valek Introduction 2 We would like to express our profound gratitude to our Premium Partners for supporting the In Gold We Trust report 2020 Details about our Premium Partners can be found on page 91 and page 92. LinkedIn | twitter | #IGWTreport Introduction 3 Introduction “All roads lead to gold.” Kiril Sokoloff Key Takeaways • Monetary policy normalization has failed We had formulated the failure of monetary policy normalization as the most likely scenario in our four-year forecast in the In Gold We Trust report 2017. Our gold price target of > USD 1,800 for January 2021 for this scenario is within reach. • The coronavirus is the accelerant of the overdue recession The debt-driven expansion in the US has been cooling off since the end of 2018. Measured in gold, the US equity market reached its peak more than 18 months ago. The coronavirus and the reactions to it act as a massive accelerant. • Debt-bearing capacity is reaching its limits The interventions resulting from the pandemic risk are overstretching the debt sustainability of many countries. Government bonds will increasingly be called into question as a safe haven. Gold could take on this role. • Central banks are in a quandary when it comes to combating inflation in the future Due to overindebtedness, it will not be possible to combat nascent inflation risks with substantial interest rate increases. In the medium-term inflationary environment, silver and mining stocks will also be successful alongside gold.
    [Show full text]
  • The Next Federal Reserve Chair: YOU’RE HIRED!!! Boyd Nash-Stacey / Nathaniel Karp 25 October 2017
    Central Banks The Next Federal Reserve Chair: YOU’RE HIRED!!! Boyd Nash-Stacey / Nathaniel Karp 25 October 2017 The FOMC is poised to undergo a nontrivial change in leadership and composition with four new regional Fed members rotating into voting roles and with a potential change in leadership. There are also three additional governor’s seats— previously four prior to the confirmation of Randy Quarles— and potentially four vacancies –depending if Chair Yellen stays- that President Trump could fill. In terms of timing, the White House has alluded that they will announce their nominee for chair before President Trump leaves for his Asia trip on November 3rd. That said, timing is less valuable than impact, as a misstep from the administration on the selection of the next Fed chair has the potential to disrupt markets and create unnecessary monetary policy uncertainty domestically and globally. Choosing a candidate that will maintain integrity and independence of the Fed is vital to continuing the stability and prosperity that the U.S. has achieved in recent decades. Although, it predates many Millennials, there was a time in recent history where political pressures influenced the Fed’s decision-making, which favored full employment over price stability, leading to increased accommodation despite many signs that the economy was operating at or above capacity. This atypical policy course led to steep increases in inflation in the 1970s and 1980s, which required significant increases in interest rates and were accompanied by economic recessions in later years. A group of academics, bankers, governors, lawyers and the incumbent have risen to the top of the list of candidates.
    [Show full text]
  • Fed Resists the Doves
    Brian S. Wesbury – Chief Economist Robert Stein, CFA – Dep. Chief Economist Strider Elass – Economist November 2, 2017 • 630.517.7756 • www.ftportfolios.com Fed Resists the Doves The after effects of hurricanes Harvey, Irma, and Maria 60% in Treasury securities and 40% in mortgage-related have done little to sway the opinion of Federal Reserve securities.) members that the economy is ready for further rate hikes. While leaving rates unchanged at today’s meeting - as With today’s statement in the books, focus is now on expected - they set the table for December. The Fed President Trump’s announcement of the next Federal essentially waved off the hurricane-related September Reserve Chair, expected later this week. According to payrolls declines, and more notably strengthened rhetoric reports from the Wall Street Journal, current Fed Governor about economic growth, which they now characterize as Jerome Powell will be nominated for the position, beating “rising at a solid rate” compared to September’s “rising out Vice President Mike Pence’s top choice (and ours too), moderately.” Meanwhile the Fed added text noting a Stanford Professor John Taylor. The question now is if pickup in business fixed investment over recent quarters. Taylor will be selected to fill the Vice-Chair position left In fact, it’s hard to find much in today’s statement that open following Stanley Fischer’s departure in October. would put a December rate hike in doubt. There were no dissents from today’s statement, not even Despite the hawkish tone of the statement, market odds of Minneapolis President Neel Kashkari, who has made a December rate hike were little changed following the dovish comments and voiced dissent to further rate hikes statement, moving to 87.5% from 82.8% two days ago.
    [Show full text]
  • Neel Kashkari Presents the Minneapolis Plan to End Too Big to Fail
    Neel Kashkari Presents the Minneapolis Plan to End Too Big to Fail Neel Kashkari President and CEO Federal Reserve Bank of Minneapolis New York, NY November 16, 2016 1 Thank you, Chairman Lundgren, for that warm introduction.1, 2 I would also like to thank the Economic Club of New York for inviting me today, and David Wessel, of the Brookings Institution, for joining us to moderate our discussion. Before I begin, I would like to remind everyone that the views I express today are my own, and not necessarily those of the Federal Open Market Committee or the Board of Governors, which sets supervision and regulatory policy for the Federal Reserve System. In February, I announced that the Federal Reserve Bank of Minneapolis was launching an initiative to develop a plan to end the problem of too big to fail (TBTF) banks, and I committed us to releasing a plan by the end of the year. Today we are fulfilling that commitment. I believe our initiative demonstrates the strength of the distributed structure of the Federal Reserve System that Congress created more than 100 years ago, which they designed to encourage a diversity of perspectives on important economic issues. The purpose of my speech is to introduce the Minneapolis Plan to end TBTF. I will give some background on the development of the plan, describe what it accomplishes, walk through the key steps of the plan, and then I look forward to discussing it with David and then with the audience. This morning, we published two documents: First, a Summary for Policymakers and, second, the Full Proposal of the Minneapolis Plan.
    [Show full text]
  • Interim Assistant Secretary for Financial Stability Neel Kashkari Remarks at Brookings Institution
    INTERIM ASSISTANT SECRETARY FOR FINANCIAL STABILITY NEEL KASHKARI REMARKS AT BROOKINGS INSTITUTION WASHINGTON – Good afternoon. Thank you, Martin, for that kind introduction. I would also like to thank the Brookings Institution for hosting us today. I will provide a comprehensive update on the Treasury Department’s progress in implementing the Troubled Asset Relief Program (TARP), and then spend some time taking questions from the audience and having a discussion. We are in an unprecedented period and market events are moving rapidly and unpredictably. We at Treasury have responded quickly to adapt to events on the ground. Throughout the crisis, we have always acted with the following critical objectives in mind: one, to stabilize financial markets and reduce systemic risk; two, to support the housing market by avoiding preventable foreclosures and supporting mortgage finance; and three, to protect taxpayers. The authorities and flexibility granted to us by Congress have been essential to developing the programs necessary to meet these objectives. A program as large and complex as the TARP would normally take many months or years to establish. But, we did not have the luxury of first building the operation, then designing our programs and then executing them. Given the severity of the financial crisis, we had to build the Office of Financial Stability, design our programs, and execute them - all at the same time. We have made remarkable progress since the President signed the law only 97 days ago. Today, I will brief you about five areas. First, I will give an update on execution of the programs Treasury has implemented under the TARP.
    [Show full text]