Gary Siegel

The region's manufacturing sector expanded in November but at an extremely slow pace slower than in October, as the general business conditions index slipped to 3.6 from 8.7 in October, this month’s Federal Reserve Bank of Philadelphia Report on Business indicates.

The extraordinary actions taken by the Fed during the financial crisis were a “problematic exercise in credit allocation,” according to Jeffrey Lacker, president of the Federal Reserve Bank of Richmond, who added that purchases of Treasuries could have created the same “expansion of reserve supply.”

Eric Rosengren, president and chief executive of the Federal Reserve Bank of Boston, aimed to discredit four misconceptions about the Fed, including that further monetary policy actions will not help the economy.

The extraordinary actions taken by the Fed during the financial crisis were a “problematic exercise in credit allocation,” according to Federal Reserve Bank of Richmond President Jeffrey M. Lacker, who added purchases of U.S. Treasury securities could have created the same “expansion of reserve supply.”

Federal Reserve Bank of Boston President and Chief Executive Officer Eric S. Rosengren aimed to discredit four misconceptions about the Fed – that it is not audited or supervised, not transparent, has caused inflation by printing money, and that further monetary policy actions will not help the economy - in a speech to the Boston Economic Club.

Builders’ confidence in the market for new single-family homes improved but remained quite low as the National Association of Home Builders' housing market index - a monthly gauge of builder sentiment – gained to 20 in November from 17 in October.

Industrial production increased 0.7% in October after a revised 0.1 decline in September from a previously reported 0.2% gain, while capacity use rose to 77.8% from a revised 77.3% in September, the Federal Reserve reported Wednesday.

The Empire State Manufacturing Survey showed “conditions for New York manufacturers held steady in November,” the Federal Reserve Bank of New York reported Tuesday, as the general business conditions index improved to positive 0.61 in November from negative 8.48 in October.

Acknowledging that the Fed has “pushed short-term interest rates about as low as we can” and no “cure-alls for our economic ailments” exist, Federal Reserve Bank of San Francisco president and chief executive officer John C. Williams said Tuesday the Fed has the tools to tighten monetary policy, if needed, but he fears the economy won’t grow that quickly and could possibly need more stimulus.

Too big to fail depository institutions should be broken up using an international accord, Federal Reserve Bank of Dallas President and CEO Richard W. Fisher said Tuesday.

The Treasury Department Tuesday auctioned $35 billion of four-week bills at a 0.005% high yield, a price of 99.999611.

The Treasury Department Tuesday auctioned $25 billion of 364-day bills at a 0.100% high yield, a price of 99.898889.

Acknowledging that the Fed has “pushed short-term interest rates about as low as we can” and no ‘cure-alls for our economic ailments” exist, Federal Reserve Bank of San Francisco President and CEO John C. Williams said the Fed has the tools to tighten monetary policy, if needed, but he fears the economy won’t grow that quickly and could possible need more stimulus.

The Empire State Manufacturing Survey showed “conditions for New York manufacturers held steady in November,” the Federal Reserve Bank of New York reported Tuesday as the general business conditions index improved to positive 0.61 in November from negative 8.48 in October.

The Treasury Department said Monday it will sell $35 billion of four-week discount bills Tuesday.

Tender rates for the Treasury Department’s latest 91-day and 182-day discount bills were higher, as the three-months incurred a 0.010% high rate, up from 0.005% the previous week, and the six-months incurred a 0.040% high rate, up from 0.035% the week before.

There is a more than 50% chance of a recession next year, according to the Federal Reserve Bank of San Francisco Economic Letter, though the authors warn against “a strict interpretation of this result” since it involves imprecise estimates regarding the possibility of a recession stemming from international events.

There is more than a 50% chance of a recession next year, according to an economist with the Federal Reserve Bank of San Francisco Economic Letter, although the authors warn against “a strict interpretation of this result” since it involves imprecise estimates regarding the possibility of a recession stemming from international events.

NEW YORK - Tender rates for the Treasury Department’s latest 91-day and 182-day discount bills were higher, as the three-months incurred a 0.010% high rate, up from 0.005% the prior week, and the six-months incurred a 0.040% high rate, up from 0.035% the week before.

The Treasury Department said Monday it will sell $35 billion of four-week discount bills Tuesday.