FEDERAL RESERVE

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Bernanke: More Fed bond buys certainly possible

The Federal Reserve could end up buying more than the $600 billion in U.S. government bonds it has committed to purchase if the economy fails to respond or unemployment stays too high, Fed Chairman Ben Bernanke said.

Fed could launch QE3: Bernanke

U.S. Chairman of the Federal Reserve Ben Bernanke
During a CBS interview, Federal Reserve Chairman Ben Bernanke did not rule out the possibility of more asset purchases, meaning a third round of quantitative easing (QE3) is possible.

Gold jumps to $1,414 per oz on doubts on U.S. economy

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Gold rose almost 2 percent on Friday, ending the week on $1,414 an ounce just a few dollars below the all-time record, as the dollar tumbled after disappointing jobs data cast doubt on the strength of the U.S. economic recovery.
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Traders work on the floor of the New York Stock Exchange

Why U.S. stocks can go up in 2011

The health of the American economy and the level of accommodation in monetary policy are the two most important factors that influence U.S. stock price movements. In 2011, it seems U.S. equities may get support both.
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Lawmakers meet Fed's Hoenig, discuss mandate

Republican lawmakers on Thursday met with a senior Federal Reserve official who opposes the central bank's easy money policies to discuss stripping the Fed of its task of ensuring full employment.
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Fed balance sheet grows a tad on bond buying

The Federal Reserve's balance sheet grew for a fifth consecutive week and closed in on its record size, with the rise stemming from its ongoing purchases of Treasuries, Fed data released on Thursday showed.
3. The value of the euro is being talked down by officials from core Europe.

Why did Germany and France spook the euro?

France and Germany, the two leading countries of the euro zone, may have intentionally engineered a competitive currency devaluation by pushing private investors to share the burden of future sovereign bailouts.
U.S. Senator Jim Bunning (R-KY) testifies before the House Committee on Government reform in Washington March 17, 2005.

Senator says mortgage crisis risk remains

Sen. Jim Bunning, R-KY expressed anger Wednesday that the potential for another mortgage crisis remains, despite efforts to deal with the mortgage crisis over the past decade.
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Totally Standard Hyperinflation

No central bank ever began a hyper-inflationary policy because it feared inflation. Such disasters always come because of vanished credit and economic depression. And whether in Germany nine decades ago, or in Argentina twenty years back, or in Robert Mugabe's Zimbabwe around the turn of this century, stuff actually gets cheaper - not more expensive - in real terms during hyperinflation.
A man walks past a hiring sign in Virginia

It’s hiring stupid! Adding 200,000 jobs a month is the real test

The fall in initial jobless claims in the U.S. to the lowest level since July 2008 is not a right pointer to a possible labor market recovery, according to an analyst, who says the true test for the economy is the creation of anything above 200,000 payroll jobs in a month.
A graph shows the official U.S. unemployment rate (in red) since January of 2009 and a calculation for the same period of the unemployment rate adjusted to include the number of people who left the labor force.

Fed's weak employment outlook dampens Q3 GDP data

Pessimistic outlook about unemployment from the U.S. Federal Reserve overshadowed reports stating the economy grew faster in the third quarter. The Fed expects unemployment to remain high over the next couple of years, hovering around 8.9 percent to 9.1 percent next year. It had previously forecast unemployment rate between 8.3 percent and 8.7 percent.

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