The Fed recently reaffirmed its determination to expand its balance sheet. The crisis has already driven it to take on risky assets such as agency bonds and commercial paper. It has also lent to we…

Some assets on the Fed's balance sheet are short-term credits than could be withdrawn easily if confidence in financial institutions returns, but the Fed has also been buying longer term assets tha…

Complementing the IMF’s $100 billion liquidity facility, the Federal Reserve has announced the establishment of swap lines with the central banks of Mexico, Brazil, South Korea, and Singapore for u…

Markets had their worst day since the 1987 crash following the House vote to reject Paulson’s rescue plan. The Federal Reserve and the Treasury are expected to hold things together through greater …

China has long pegged its currency to the Dollar.  After the USD started to depreciate against many currencies in 2002, expectations emerged that China would move away from a tight dollar peg.  Fol…