Posts Tagged ‘Federal Reserve’
Much of this mess has focused on new graduates, but according to a new report, there has been talk of the federal government now honing in on retirees, so let me explain what this all means. The Debt Collection Improvement Act of 1996 granted the federal government authority to withhold a fraction of their Social Security payments if retirees owe defaulted debt to the government — including student loans.
Today the Federal Reserve said that American families have about the same net worth under the Obama administration that they had 20 years ago when George H.W. Bush occupied the White House. This all comes from a report by the Survey of Consumer Finances, found that median wealth for families plunged by 39 percent to $77,300 in 2010 — down from $126,400 in 2007. The median marks the point where half of U.S. families had more and half had less. The recession officially began in December 2007 and ended in June 2009.
It will soon be the most powerful federal agency we’ve ever heard of, and lawmakers from both sides vowed to keep abreast of its astonishing growth and rein it in, if necessary. A creation of the Dodd-Frank financial services overhaul that President Obama signed into law in July 2010, has now become the powerful Office of Financial Research, or OFR.
Last week the number of people seeking jobless benefits rose to a seasonally adjusted 377,000, up from a nearly four-year low the previous week. But the longer-term trend is pointing to a healthier job market. Applications have trended down over the past few months. The four week average has declined to 377,500. When applications fall consistently below 375,000, it tends to signal that hiring is strong enough to lower the unemployment rate.
On Wednesday the Federal Reserve said that it is unlikely to raise interest rates before late 2014, extending a period of record-low rates by more than a year. The rates will remain low to help lift a weak but modestly growing economy. The Fed’s new timeframe hints at details in the quarterly economic forecast which will be released later. That will show in what year policy members expect the first increase in the Fed’s benchmark interest rate.