The Federal Open Market Committee has decided to lower its target for the federal funds rate 50 basis points to 1-1/2 percent.
"I believe that the bold actions taken by the Congress, the Treasury, the Federal Reserve, and other agencies, together with the natural recuperative powers of the financial markets, will lay the groundwork for financial and economic recovery."
On October 6, 2008, the Federal Reserve conducted an auction of $150 billion in 85-day credit through its Term Auction Facility. Results of the auction are listed on the Board website.
Vertical Specialization and International Business Cycle Synchronization explores the impact of vertical specialization—trade in goods across multiple stages of production—on the relationship between trade and international business cycle synchronization.
Residential Foreclosures in Texas Depart from National Trends—Since 2005, mortgage delinquencies and foreclosures across the U.S. have escalated from historically low levels. In Texas, the number of foreclosures has been among the highest in the nation. However, Texas has the second-largest population among the 50 states and a large number of home mortgages.
The price of a McDonald's Big Mac may provide a glimpse into the factors that shape regional, national and global pricing. "The Big Mac: A Global-to-Local Look at Pricing" finds price-setting behaviors for a relatively simple product like the Big Mac are quite complex.
The trimmed mean PCE inflation rate for August was an annualized 2.2 percent. According to the BEA, the overall PCE inflation rate for August was 0.4 percent, annualized, while the inflation rate for PCE excluding food and energy was 3.0 percent.
"Responding to Turbulence (With Reference to Bob Dylan, Alan Brooke, Washington Irving, Anna Fisher and Marcus Nadler)"—Remarks before the Money Marketeers of New York University.
Texas Economy Moderating—The Texas economy continues to expand, but growth is decelerating due to a slowdown in the national economy, elevated commodity prices and the ongoing credit crunch.
"The intensification of financial stress in recent weeks, which will make lenders still more cautious about extending credit to households and business, could prove a significant further drag on growth. The downside risks to the outlook thus remain a significant concern."
"Despite the efforts of the Federal Reserve, the Treasury, and other agencies, global financial markets remain under extraordinary stress. Action by the Congress is urgently required to stabilize the situation and avert what otherwise could be very serious consequences for our financial markets and for our economy."
On September 22, 2008, the Federal Reserve conducted an auction of $75 billion in 28-day credit through its Term Auction Facility. The results of the auction are listed on the Board website.
The Dallas Fed and its branches in the 11th District are open and operating following the impact of Hurricane Ike. Information for financial institutions affected by the hurricane will continue to be updated on the Dallas Fed website.
Uncharted Waters—Currently, the U.S. economy is navigating its way through the combined effects of complex financial turmoil and an unfavorable terms-of-trade shock primarily due to elevated energy and commodity prices.
The Bank of Canada, the Bank of England, the European Central Bank (ECB), the Federal Reserve, the Bank of Japan, and the Swiss National Bank are announcing coordinated measures designed to address the continued elevated pressures in U.S. dollar short-term funding markets.
"An International Perspective on Oil Price Shocks and U.S. Economic Activity" finds that both oil supply and oil demand shocks have contributed significantly to oil price fluctuations and that U.S. output fluctuations are derived largely from domestic shocks.
The Federal Open Market Committee decided today to keep its target for the federal funds rate at 2 percent.
"We must find ways to move more of our students, especially minorities and those from disadvantaged backgrounds, into education after high school. The historically black colleges and universities have long played a vital role in this regard."
"While it seems pretty clear that economic momentum is slowing, the jury is out on whether lesser momentum will be sufficient to translate into relief on the price front over the intermediate to longer term. In East Texas parlance, 'it might could, but it mightn’t'; it most definitely has not thus far."
As expected, revisions to Houston’s wage and salary employment growth were positive through the first quarter of this year, implying six-month job growth of about 2.2 percent, or a pace of about 55,000 new jobs in 2008.
The trimmed mean PCE inflation rate for July was an annualized 4.3 percent. According to the BEA, the overall PCE inflation rate for July was 7.9 percent, annualized, while the inflation rate for PCE excluding food and energy was 3.3 percent.
"Higher Minimum Wage Looms Large in Texas"—Texas labor markets are more affected by minimum wage increases than other large states because Texas has more workers earning close to the minimum wage.
"Texas Economy Feels National Pinch"—A slowing national economy has dampened the Texas economic outlook, but energy and trade remain bright spots for the state.
"On the Record: The Art and Science of Measuring Inflation"—Senior Economist Jim Dolmas explains various measures of core inflation, including the Dallas Fed's Trimmed Mean PCE.
"SpotLight: El Paso Medical School"—Along with new and expanded health care facilities, the medical school opening next year in El Paso could serve as a catalyst for bringing well-paying professional jobs to West Texas.
This paper studies the maturity composition and the term structure of interest rate spreads of government debt in emerging markets.
On August 12, 2008, the Federal Reserve conducted an auction of $50 billion in 28-day credit through its Term Auction Facility. The results of the auction are on the Board's website.
On August 11, 2008, the Federal Reserve conducted an auction of $25 billion in 84-day credit through its Term Auction Facility. Results of the auction are on the Board's website.
Challenging Times... Global economic activity continues to expand, but at a slower pace. Sluggish growth in the advanced economies is expected to continue at least until the first half of 2009. The rapid growth in the emerging markets is likely to soften.
The Texas Workforce Commission has recently published first quarter Covered Employment and Wages data (CEW) along with updates to several previous quarters. With the inclusion of the new CEW information, first quarter 2008 Texas payroll employment growth was revised down from an annualized rate of 2.7 percent to 2 percent.
“Reaching Mexico’s Unbanked”—Attempts to reach Mexico’s unbanked population through retail outlets are aiding the nation’s transition to greater financial system participation.
The second quarter 2008 survey indicated continued strain in the Eleventh District agricultural community. Respondents from several regions noted that hot, arid and windy weather dried out topsoil moisture, deteriorating crop and pasture conditions, increasing the need for supplemental feeding and weakening the outlook.
The Federal Reserve today announced several steps to enhance the effectiveness of its existing liquidity facilities, including the introduction of longer terms to maturity in its Term Auction Facility. In association with this change, the European Central Bank and the Swiss National Bank are adapting the maturity of their operations.
Some Preliminary Evidence on the Globalization-Inflation Nexus
The Real Exchange Rate in Sticky-Price Models: Does Investment Matter?
Technical Note on 'The Real Exchange Rate in Sticky-Price Models: Does Investment Matter?'
After Houston added close to 100,000 jobs in 2006 and 2007, its job growth is now running at a pace of only 40,000 per year. These latest job numbers are still subject to revision, but today’s economic backdrop of slower national and global expansion provides an easy rationale for a local deceleration.
"Variety, Globalization, and Social Efficiency" shows how the gains from globalization are reflected in the increase in variety and the exploitation of economies of scale, and that the social efficiency question is quantitatively insignificant.
"The economy continues to face numerous difficulties, including ongoing strains in financial markets, declining house prices, a softening labor market, and rising prices of oil, food, and some other commodities."
"Why Are Exchange Rates So Difficult to Predict?" finds no definitive evidence that any economic fundamental can forecast exchange rates for nations with similar inflation rates.
The Board of Governors of the Federal Reserve System has granted the Federal Reserve Bank of New York the authority to lend to Fannie Mae and Freddie Mac should such lending prove necessary.
The Federal Reserve Board has approved a final rule for home mortgage loans to better protect consumers and facilitate responsible lending.
On July 14, 2008, the Federal Reserve will offer $75 billion in 28-day credit through its Term Auction Facility.
"The Federal Reserve is strongly committed to supporting the stability and improved functioning of the financial system. We are currently monitoring developments in financial markets closely and considering several options, including extending the duration of our facilities for primary dealers beyond year-end, should the current unusual and exigent circumstances continue to prevail in dealer funding markets."
Texas economic growth continued to moderate in May. The Dallas Fed’s Texas Business-Cycle Index, a gauge of the region’s current economic conditions, increased an annualized 2.3 percent, a deceleration from the 4.1 percent growth recorded in 2007.
"Building Markets by Building Communities" focuses on three kinds of community investments that have drawn strong bank support. What makes these investments stand out are the creative ways they connect low- and moderate-income people to key building blocks of vibrant communities and economies: education, technology and health care.
In recognition of Independence Day, the Federal Reserve Bank of Dallas has posted a discussion with Pulitzer Prize-winning historian David McCullough on the founding ideals that made possible America's dynamic economy.
Those of us who live and work in the United States are contending with three challenging economic adjustments: learning to live within our means, the collapse of subprime mortgage lending and shifts in relative prices.
The Federal Reserve will conduct two auctions of 28-day credit through its Term Auction Facility in July.
On June 30, 2008, the Federal Reserve conducted an auction of $75 billion in 28-day credit through its Term Auction Facility. The results of the auction are listed on the Board's website.
More What's New
Disclaimer/Privacy Policy
