Gary Siegel

“Operation Twist” will have a modest impact, according to Federal Reserve Bank of Atlanta President and Chief Executive Officer Dennis P. Lockhart.

The Treasury Department Tuesday auctioned $30 billion of four-week bills at a zero high yield, a price of par.

“Manufacturing activity in the central Atlantic region contracted at a less pronounced rate this month,” according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond. “Looking at the main components of activity, employment grew at a slightly quicker rate, while shipments exhibited more moderate weakness and new orders slipped further into negative territory. Evidence of diminished weakness was also reflected in most other indicators. District contacts reported that backlogs, capacity utilization, and delivery times remained negative but improved from August's readings. Manufacturers reported somewhat quicker growth in finished goods inventories.”

“Service sector activity weakened in September,” according to the Federal Reserve Bank of Richmond service-sector activity survey, released Tuesday, “Revenues dropped at both retail and non-retail establishments. Retail shopper traffic fell, and big-ticket sales also ended the month in decline. Merchants' inventories edged up on pace with a month ago. Retailers expected sales to remain weak for the six months ahead, and non-retail services providers anticipated flattening in business prospects over that period.”

The consumer confidence index inched up to 45.4 in September from an upwardly revised 45.2 last month, The Conference Board reported Tuesday.

The Chicago Fed Midwest Manufacturing Index was up 0.6% in August to a seasonally adjusted level of 85.0, as three of the four regional sectors showed improvement, the Federal Reserve Bank of Chicago reported Monday.

While the Federal Reserve’s use of monetary “policy tools has been completely appropriate,” Fed governor Sarah Bloom Raskin said it would have been nice if the Fed could have provided “precise quantitative information” for what each tool would do, but the effects of the tools are subject to “considerable uncertainty.”

A rate increase “promised date,” which could be manipulated based on economic conditions, could be the primary policy tool when the federal funds rate target is near zero, according to Federal Reserve Bank of St. Louis president James Bullard.

A rate increase “promised date,” which can be manipulated based on economic conditions, could be the primary policy tool when the fed funds rate target is near zero, according to Federal Reserve Bank of St. Louis President James Bullard.

Tender rates for the Treasury Department’s latest 91-day and 182-day discount bills were higher, as the three-months incurred a 0.020% high rate, up from 0.010% the prior week, and the six-months incurred a 0.035% high rate, up from 0.030% the week before.

The Treasury Department said Monday it will sell $30 billion of four-week discount bills Tuesday.

Texas factory activity, as measured by the production index, improved in September, according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released Monday.

While the Fed’s use of monetary “policy tools has been completely appropriate,” Federal Reserve Board Governor Sarah Bloom Raskin said it would have been nice if the Fed could have provided “precise quantitative information” for what each tool would do, but the effects of the tools are subject to “considerable uncertainty.”

The Chicago Fed National Activity Index for August declined to negative 0.43 from a revised positive 0.02 reading in July, while the three-month moving average (CFNAI-MA3) widened to negative 0.28 in August, from July’s revised negative 0.27, the Federal Reserve Bank of Chicago reported Monday.

The extraordinary measures taken by the Fed, since the federal funds rate target was near zero, were “useful,” John Williams, Federal Reserve Bank of San Francisco president, said Friday.

The global financial system “was woefully inadequate” in 2008, and while progress in reform has been made, the work “is far from complete,” Federal Reserve Bank of New York president and chief executive William Dudley said Friday.

The extraordinary measures taken by the Fed, since the Fed funds rate target was near zero, were “useful,” Federal Reserve Bank of San Francisco President and CEO John C. Williams said Friday.

The global financial system of 2008 “was woefully inadequate” and while progress in reform has been made, work “is far from complete,” Federal Reserve Bank of New York President and Chief Executive Officer William C. Dudley said Friday.

The Treasury Department said Thursday it will auction $29 billion of seven-year notes on Sept. 29.

The composite index of leading economic indicators grew 0.3% in August, the Conference Board said Thursday.