News and Media

News and Media

The Public Information Office serves as the primary source for news and media contacts at the Federal Reserve Bank of Cleveland. Reporters with questions or an interest in speaking with a Cleveland Fed staff member should contact Anne M. DiTeodoro, media coordinator, at 216.774.2514, or anne.m.diteodoro@clev.frb.org.

News Items

  • Fraud Alert
  • Some consumers have received an email claiming they have a wire transfer from the Federal Reserve. These communications are fraudulent. Read more about Frauds and Scams
  •  
    •
  • Where would the fed funds rate be if it could be negative? As much as 5 to 6 percentage points below zero during 2009-2010, say Cleveland Fed researchers
  • In the wake of the Great Recession, the Federal Reserve reduced its target for the federal funds rate, its chief policy tool, to a range of 0 percent to 0.25 percent.
  •  
    •
  • The Taylor rule: GDP gap vs growth rate
  • Cleveland Fed researchers focus on the Taylor rule, a rule of thumb that suggests that the Federal Reserve generally responds to movements in inflation and economic activity.
  •  
    •
  • Policy Rules in Macroeconomic Forecasting Models
  • This Commentary describes how some of the Cleveland Fed’s macroeconomic forecasting models have been modified to use a Taylor rule for monetary policy
  •  
    •
  • Cleveland Fed Researchers Examine Alternatives to Libor as an Index for ARMs
  • Libor served as a reliable, low-risk benchmark for adjustable rate mortgages (ARMs) until the financial crisis, when Libor diverged sharply from other similar short-term rates.
  •  
    •
  • Which innovation policies work best? What are the best ways to rebuild communities? Does U.S. manufacturing still matter? Find out in Forefront, from the Cleveland Fed.
  • Innovation -- the ability to produce knowledge and use it commercially -- is a key determinant of economic growth. And public policy can help raise innovation levels. But which policies work best?
  •  
    •
  • Terry Roth Leads Federal Reserve Banks’ Financial Services Policy Committee Support Office; Bob Price, Current Head of the Support Office, Retires
  • Terrence (Terry) Roth has been appointed senior vice president of the Federal Reserve Banks’ Financial Services Policy Committee (FSPC) Support Office, effective September 1, 2012. Roth succeeds Robert Price, senior vice president of the Financial Services Policy Committee Support Office, who retired on August 31, 2012
  •  
    •
  • Labor’s Share of Income Has Declined, Increasing Income Inequality, Say Cleveland Fed Researchers
  • Since the early 1980s, labor’s share of total income in the US has dropped significantly. At the same time, labor income has become more concentrated among those at the top of the income scale.
  •  
    •
  • Pianalto Reflects on Leadership, Fed Policy Actions, and the Value of a College Degree
  • As part of her remarks to students at Miami University’s Farmer School of Business in Oxford, Ohio, Federal Reserve Bank of Cleveland President Sandra Pianalto described recent Federal Reserve monetary policy actions. She also shared some observations on the value of a college degree.
  •  
    •
  • Household Formation Down, Especially Among Young Adults, Negatively Impacting Housing: Cleveland Fed Researcher
  • Americans set up households at a much slower clip during the Great Recession, with the biggest dropoff occurring among young adults, ages 18 to 34. This slowing in household formation, a reflection of the overall weak economy, has reduced housing demand, negatively impacting the housing market, says Tim Dunne, a researcher at the Federal Reserve Bank of Cleveland.
  •  
    •
  • Thomas Sohlberg Named Vice President of Human Resources for Cleveland Federal Reserve Bank
  • Thomas Sohlberg joined the Federal Reserve Bank of Cleveland as vice president of Human Resources, effective July 16, 2012.
  •  
    •
  • Debt Reduction: Are Consumers Deleveraging or Are Banks Unwilling to Lend? (Cleveland Fed Researchers)
  • The Great Recession brought an end to a 20-year expansion of consumer debt. Was the turnaround motivated by consumers’ decreased appetite for debt...or by banks’ unwillingness to lend?
  •  
    •
  • Graduate Degrees Driving Growth in College Wage Premium, Says Cleveland Fed Researcher
  • College graduates earn significantly higher wages, on average, than high school graduates. But an increase in the value of advanced degrees has accounted for all of the growth in the college wage premium since the 2000s, says Cleveland Federal Reserve Bank Economist Jonathan James.
  •  
    •
  • President Pianalto Discusses "The Federal Reserve and Monetary Policy"
  • In remarks at a central Ohio business luncheon in Newark, Ohio, Federal Reserve Bank of Cleveland President Sandra Pianalto described how the Federal Reserve makes monetary policy for the United States and provided her economic outlook
  •  
    •
  • President Pianalto Discusses "Monetary Policy in Challenging Times"
  • Federal Reserve Bank of Cleveland President Sandra Pianalto shared her economic outlook and her thoughts on monetary policy at a conference organized by Penn State’s Economic Research Institute of Erie, in Erie, Pennsylvania.
  •  
    •
  • Cleveland Fed releases companion piece on banks’ management of REO properties
  • REO properties present challenges and risks not only to communities, but also to the banks that own them. In late June 2012, the Board of Governors released a Q&A for Federal Reserve-regulated institutions on managing REO properties. The Cleveland Fed, along with the Board of Governors, has prepared this companion primer on managing vacant residential property for stable neighborhoods. It contains information, resources, and suggestions from bankers on the risks, rights, and responsibilities involved in managing such properties — both before and after foreclosure.  ()
  •  
    •
  • Foreclosed in 2009 -2010?
  • If you were involved in a foreclosure in 2009-2010, you may be entitled to an independent foreclosure review. Act soon - the Federal Reserve Board and the Office of the Comptroller of the Currency recently extended the application deadline to December 31, 2012. This YouTube video from the Federal Reserve Board of Governors explains who is eligible for the foreclosure review, how to get started, and what to expect.
  •  
    •
  • Communication and Price Stability: Lessons Learned from Japan (Cleveland Fed Researcher)
  • Steps taken by central banks to increase the transparency of their monetary policies through clearer communications with the public not only increase their accountability, but can also enhance the effectiveness of their monetary policies. However, central banks can face a struggle in communicating an inflation objective in a deflationary environment, particularly when policy rates are near zero and deflation is a persistent problem, as has been the case in Japan.
  •  
    •
  • President Pianalto Discusses "Community Development by the Numbers"
  • Federal Reserve Bank of Cleveland President Sandra Pianalto opened the Bank’s Policy Summit on Housing, Human Capital, and Inequality by describing how the Federal Reserve’s thinking about community development has evolved over time and why the Cleveland Reserve Bank is now taking a more holistic view towards tackling the hard work of rebuilding our cities and neighborhoods.
  •  
    •
  • Mark Meder Named Senior Vice President and General Auditor for Cleveland Federal Reserve Bank
  • Mark Meder has been named a senior vice president and general auditor at the Federal Reserve Bank of Cleveland, effective June 16, 2012. He is responsible for the strategic leadership and oversight of the Bank’s Internal Audit function.
  •  
    •
  • Iris Cumberbatch Named Vice President of Public Affairs for Cleveland Federal Reserve Bank
  • Iris Cumberbatch has been named vice president of Public Affairs at the Federal Reserve Bank of Cleveland, effective May 31, 2012. She will be responsible for leadership and oversight of the Public Affairs function, including public information, strategic communications, web services, and executive outreach.
  •  
    •
  • Okun’s Law Unstable, Not Very Useful as Forecasting Tool
  • Federal Reserve Bank of Cleveland researchers Brent Meyer and Murat Tasci raise questions about the usefulness of Okun’s law, a rule of thumb that suggests that there is a stable relationship between the growth rate of economic output and the unemployment rate.
  •  
    •
  • Technological Shocks Explain Growth in Foreign, But Not U.S., Unemployment Rates
  • Cleveland Fed researcher Pedro Amaral, rules out a particular class of technological shocks -- known as Total Factor Productivity (TFP) shocks -- as the reason for the growth in the U.S. unemployment rate during the last recession
  •  
    •
  • President Pianalto Discusses Monetary Policy, Economics and the Recovery
  • At a National Association of Business Economics conference hosted by the Federal Reserve Bank of Cleveland, Bank President Sandra Pianalto discussed the impact of the recession on workforce and capital investment, outlined her views on the cyclical and structural aspects of the recovery and discussed the Federal Reserve’s monetary policy responses.
  •  
    •
  • Bank’s 2011 Annual Report examines labor market trends
  • In the Federal Reserve Bank of Cleveland’s 2011 Annual Report, Bank President and CEO Sandra Pianalto discusses developments in the U.S. labor market that underpin her view that the current stance of U.S. monetary policy is on the right path to meet the Federal Reserve’s dual mandate of maximum employment and stable prices
  •  
    •
  • Foreclosed in 2009 -2010?
  • If you were involved in a foreclosure in 2009-2010, you may be entitled to an independent foreclosure review. Act soon — the Federal Reserve Board and the Office of the Comptroller of the Currency recently extended the application deadline to September 30, 2012. This YouTube video from the Federal Reserve Board of Governors explains who is eligible for the foreclosure review, how to get started, and what to expect.
  •  
    •
  • Educational attainment: Ohio has made progress in some areas, lags in others - Cleveland Fed research
  • They go together -- economic performance and the skills of a region’s workforce.
  •  
    •
  • President Pianalto Highlights "Communication - A Key to Value-Added Supervision"
  • At a program in Lexington sponsored by the Kentucky Department of Financial Institutions, Federal Reserve Bank of Cleveland President Sandra Pianalto talked about current economic conditions and her outlook. She also discussed challenges facing bankers and the importance of two-way communication in the supervisory process.
  •  
    •
  • Forefront sheds light on public finances; also interviews Cleveland Fed President Pianalto
  • A number of U.S. states and municipalities are facing budget shortfalls and struggling to address chronic underfunding of their pension plans.
  •  
    •
  • President Pianalto discusses The Fed and the Economy: Lessons from Milton Friedman
  • In a speech in Marietta, Ohio, to the Economic Roundtable of the Ohio Valley, Federal Reserve Bank of Cleveland President and CEO Sandra Pianalto discussed the Federal Reserve and monetary policy, and how the Fed has responded to the extraordinary economic conditions of the last few years. She also shared her economic outlook.
  •  
    •
  • Cleveland Fed Emphasizes Stress Measurement to Promote Financial Stability
  • The Federal Reserve Bank of Cleveland has developed a tool - the Cleveland Financial Stress Index, or CFSI - that can monitor the condition of broad financial sectors and provide insight into the factors that are adversely affecting these markets.
  •  
    •
  • Financial Statements
  • On March 20, the Federal Reserve System released the 2011 combined annual comparative financial statements for the Federal Reserve Banks, as well as for the 12 individual Federal Reserve Banks including the Federal Reserve Bank of Cleveland.
  •  
    •
  • Lenders overvaluing foreclosed homes, contributing to REO glut, say Cleveland Fed researchers
  • Appraisers, lenders, and investors appear to be routinely overestimating the values of homes prior to foreclosure, especially in weak housing markets, say Federal Reserve Bank of Cleveland economists Thomas J. Fitzpatrick, IV, and Stephan Whitaker.
  •  
    •
  • FOMC Statement
  • Information received since the Federal Open Market Committee met in January suggests that the economy has been expanding moderately.
  •  
    •
  • President Pianalto Discusses Keys to Growth
  • In remarks at The City Club of Cleveland, Federal Reserve Bank of Cleveland President Sandra Pianalto discussed the economic conditions in her region and explained why education and innovation are the keys to the region’s long-term growth. She also described the steps the Federal Reserve is taking to support the economic recovery.
  •  
    •
  • President Pianalto Discusses Prospects for the Nation and the Region
  • At the annual meeting of the Medina County Economic Development Corporation, in Westfield Center, Ohio, Federal Reserve Bank of Cleveland President Sandra Pianalto discussed the economic conditions in her region and explained why education and innovation are the keys to the region’s long-term growth. She also described the steps the Federal Reserve is taking to support the economic recovery.
  •  
    •
  • Rising rents could complicate inflation assessment, says Cleveland Fed researcher
  • The Consumer Price Index (CPI) includes a measure of the cost of owner-occupied housing that is based on surveys of the cost of nearby rental units.
  •  
    •
  • Susan Steinbrick Appointed Senior Vice President & Chief Financial Officer at Cleveland Fed
  • Susan Steinbrick has been named senior vice president and chief financial officer at the Federal Reserve Bank of Cleveland, effective February 9, 2012.
  •  
    •
  • President Pianalto Discusses Creating Value in Distressed Neighborhoods
  • Federal Reserve Bank of Cleveland President Sandra Pianalto shared her thoughts on addressing the significant housing challenges faced by Greater Cleveland and other aging, industrial cities, at a program sponsored by Neighborhood Housing Services of Greater Cleveland.
  •  
    •
  • Cleveland Fed Learning Center Visitors to Receive Free Piggy Banks to Highlight America Saves Week
  • On February 21-23, all visitors to the Federal Reserve Bank of Cleveland’s Learning Center and Money Museum will receive a free piggy bank and a copy of the Great Minds Think: A Kid’s Guide to Money activity book.
  •  
    •
  • Resolving Insolvent Financial Firms: Blended Approach May be Best, say Cleveland Fed Researchers
  • Financial innovation, coupled with legislative and regulatory reform, has increasingly blurred the distinction between banks and nonbank financial companies.
  •  
    •
  • Financial Disclosures for Reserve Bank Presidents
  • In order to promote transparency and in response to media interest, the Federal Reserve Banks are making available financial disclosure forms filed by their current presidents.
  •  
    •
  • Federal Reserve Bank of Cleveland Announces Official Appointments
  • The Federal Reserve Bank of Cleveland has announced the following official appointments:
  •  
    •
  • Cleveland Fed President Discusses the Long Road Back to Full Employment
  • In a speech in Wooster, Ohio, Federal Reserve Bank of Cleveland President Pianalto shared her outlook for the economy and inflation, discussed why unemployment remains so stubbornly high, and shared her thoughts on monetary policy.
  •  
    •
  • Cleveland Fed Announces Appointments to Cleveland, Cincinnati, and Pittsburgh Boards and Federal Advisory Council
  • The Federal Reserve Bank of Cleveland announced the following appointments and elections to its main office and branch boards of directors and to the Federal Advisory Council, effective January 1, 2012.
  •  
    •
  • Falling property values may amplify municipal budget crises: Cleveland Fed researchers
  • The dramatic fall in home prices is shrinking the property tax base, contributing to a sharp decline in municipal tax revenues, says a study by Federal Reserve Bank of Cleveland researchers Thomas J. Fitzpatrick IV and Mary Zenker.
  •  
    •
  • Cleveland Fed’s Green Building Captures the Gold
  • The Federal Reserve Bank of Cleveland is one of only six organizations in Ohio to achieve Leadership in Energy and Environmental Design (LEED) gold certification from the Green Building Certification Institute (GBCI), placing the Bank in an elite group of existing buildings that rank high in sustainable performance.
  •  
    •
  • Policy uncertainty adversely affecting small business expansion plans, say Cleveland Fed and CWRU researchers.
  • While small business owners have been saying that uncertainty about the future direction of federal policies has caused them to hold back on hiring and capital investment, some observers have argued that there is no evidence for this assertion.
  •  
    •
  • President Pianalto Discusses the Economic Outlook and the Progress of U.S. Households
  • In remarks to the Rotary Club of Lexington, Kentucky, Federal Reserve Bank of Cleveland President Sandra Pianalto discussed why it is taking so long to fully recover from the recent recession, with a focus on consumer spending. She also outlined her views on monetary policy.
  •  
    •
  • How the Recession May Change America
  • Has the Great Recession changed us? And what are the economic implications of adjustments in our spending, saving, and work behaviors? The Federal Reserve Bank of Cleveland explores these questions in "Generation Recession," the fall issue of the Bank’s policy publication, Forefront.
  •  
    •
  • Greg Stefani Named First Vice President and Chief Operating Officer, Cleveland Fed
  • Gregory L. Stefani has been appointed first vice president and chief operating officer of the Federal Reserve Bank of Cleveland, effective November 1, 2011.
  •  
    •
  • Bankruptcy, Bailout, or Liquidation? Cleveland Fed Researchers Offer Lessons Learned from Lehman Brothers
  • Some analysts say Lehman Brothers bankruptcy filing in 2008 was a disorderly resolution that may have caused the near collapse of financial markets.
  •  
    •
  • President Pianalto Discusses U.S. Manufacturing and the Economic Outlook
  • In a speech in Toledo, Ohio, Federal Reserve Bank of Cleveland President Sandra Pianalto discussed the forces reshaping the global manufacturing economy: technology, productivity and location. She also presented an overview of the current economic conditions facing the U.S. and discussed the path of manufacturing through the recovery. The program was sponsored by the Global Interdependence Center and The University of Toledo
  •  
    •
  • Lessons from Budget Reforms in Canada and the U.K.: Cleveland Fed Researchers
  • The U.S. federal debt increased by 79 percent from 2007 to 2010 and is projected to continue to rise, prompting calls for budget reforms. Examining austerity measures adopted by Canada in 1995 and the United Kingdom in 2011, Federal Reserve Bank of Cleveland researchers Daniel Carroll and John Lindner offer several takeaways for reforms that may be proposed in the U.S.
  •  
    •
  • Education Gap Between Women and Men Widening, Say Cleveland Fed Researchers
  • In the U.S. today, college graduates earn about 90 percent more than high school graduates, and not surprisingly, the proportion of the adult population with a four-year college degree continues to rise. However, women are graduating from college at a much higher rate than men, accounting for almost all of the growth in the U.S. college attainment rate since 1980, according to researchers from the Federal Reserve Bank of Cleveland.
  •  
    •
  • Macro Models’ Failure to Predict Financial Crisis Does Not Negate Their Usefulness, Say Cleveland Fed Researchers
  • Macroeconomic models have become important tools for monetary policymakers, useful both for forecasting and for comparing different policy options.
  •  
    •
  • Recent Increases in Inflation Likely to Be Temporary, Says Cleveland Fed Researcher
  • Are recent increases in consumer prices a temporary aberration, or the start of a dangerous upward trend?
  •  
    •
  • Jobless Recovery Due to Slowing Output Growth, the "Real Puzzle," says Cleveland Fed Researcher
  • The U.S. is experiencing its third "jobless recovery," which some have attributed to a fundamental change in our labor market. However, economist Murat Tasci at the Federal Reserve Bank of Cleveland finds little evidence of such a change.
  •  
    •
  • David Hollis Named Senior VP of Cleveland Fed’s Human Resources
  • David W. Hollis was named senior vice president of human resources at the Federal Reserve Bank of Cleveland.
  •  
    •
  • Subdued Labor Cost Growth Likely to Restrain Inflation, Say Cleveland Fed Researchers
  • Labor cost growth has declined markedly and is likely to be a significant restraining force on inflation going forward, say researchers at the Federal Reserve Bank of Cleveland.
  •  
    •
  • Resolving Large, Complex Financial Firms
  • One of the most pressing policy issues facing those who supervise financial firms is the problem of systemically important financial institutions. Earlier this year, the Bank held a conference to examine some of the challenges associated with resolving insolvent institutions
  •  
    •
  • Business Credit Flows Recovered Quickly after Recession
  • The downturn in credit flows to businesses during the last recession was the most severe in the post-WWII period, due to a combination of factors. But credit markets recovered quickly, says Pedro Amaral, a researcher at the Cleveland Fed.
  •  
    •
  • Effects of Commodity Price Shocks Likely to be Modest, Say Cleveland Fed Researchers
  • Sharp increases in energy and other commodity prices earlier this year have raised concerns about whether those price increases will push up producer and consumer prices.
  •  
    •
  • FOMC Statement
  • Information received since the Federal Open Market Committee met in June indicates that economic growth so far this year has been considerably slower than the Committee had expected.
  •  
    •
  • Decline in bank branches may have social costs, say Cleveland Fed and OSU researchers
  • The number of bank branches has declined in some major metropolitan areas, in sync with declining populations and economic activity.
  •  
    •
  • Federal Reserve Bank of Cleveland Announces Official Appointments
  • Paul Kaboth has been promoted to vice president and community affairs officer in the Community Development Department. Maria Bowlin has been promoted to assistant vice president in the Facilities Management Department. Matthew Hite has been promoted to assistant vice president in the Financial Support Services Department.
  •  
    •
  • Rise in Foreclosures Could Mean Long-Term Increase in Vacancies, Says Cleveland Fed Researcher
  • Vacant properties impact the home values and quality of life in their neighborhoods. And the rise in foreclosures could translate into a long-term increase in vacancies, says Federal Reserve Bank of Cleveland researcher Stephan Whitaker.
  •  
    •
  • Flexible Policies Keep Unemployment Low in Long Run, Say Cleveland Fed Researchers
  • The Great Recession resulted in substantial contractions in economic output in many of the world’s major industrialized countries, but the recession’s impact on labor markets in those countries varied widely.
  •  
    •
  • Hal Keller Elected a Director of the Federal Reserve Bank of Cleveland
  • Harold (Hal) Keller, president, Ohio Capital Corporation for Housing (OCCH), Columbus, Ohio, was elected a director of the Federal Reserve Bank of Cleveland, effective May 25, 2011.
  •  
    •
  • Slower Growth, Higher Inflation Likely Temporary, Says Cleveland Fed Researcher
  • Early 2011 began with strong winter storms, a Japanese earthquake and tsunami, and political uprisings in the Middle East and Africa that drove up oil and other industrial commodity prices. These "supply shocks" caused disruptions to US production, impacting real GDP growth and consumer price inflation. "However, as long as energy and other commodity prices do not continue to rise sharply, these effects are likely to be temporary and modest," says Ken Beauchemin, an economist at the Federal Reserve Bank of Cleveland.
  •  
    •
  • President Pianalto Discusses Labor Markets and Federal Reserve Policy
  • In a speech at the Columbus Metropolitan Club, Federal Reserve Bank of Cleveland President and CEO Sandra Pianalto discussed what recent labor market developments say about the economic recovery, why the unemployment rate is still high, and what today’s labor markets reveal about inflation. She concluded with her thoughts on what all of this means for the economy going forward
  •  
    •
  • Inflation Expectations: Demographic Differences Overstated, say Cleveland Fed Researchers
  • Use of Median, not Mean, Makes Differences Disappear. Inflation expectations are a key determinant of actual inflation. That’s why monitoring and measuring the public’s inflation expectations is so important to the Federal Reserve.
  •  
    •
  • President Pianalto Offers Her Perspectives on the Economic Outlook and Monetary Policy
  • In a speech at Xavier University in Cincinnati, Ohio, Federal Reserve Bank of Cleveland President and CEO Sandra Pianalto discussed why the economic outlook is so important to the monetary policymaking process and what goes into economic forecasting. She also shared her economic outlook.
  •  
    •
  • Nongraduates Matter When Considering College Degree Share
  • Regions with a more highly educated population tend to exhibit stronger economic performance, prompting government and civic leaders to pursue policies that raise their region’s share of college graduates. Stephan Whitaker, a researcher with the Federal Reserve Bank of Cleveland, found that many places with a high share of degreed residents have had below-average growth in nongraduates.
  •  
    •
  • Cleveland Fed Policy Summit to Focus on Housing, Human Capital, and Inequality
  • On June 9-10, 2011, the Federal Reserve Bank of Cleveland will gather local and national experts to discuss the implications of increased inequality in income and educational outcomes in the US.
  •  
    •
  • Buy or rent tool highlights financial risks/rewards of home ownership
  • Cleveland Fed researchers have developed a tool that compares the financial risks and rewards of home ownership vs renting.
  •  
    •
  • Cleveland community stabilization efforts showcased in national Federal Reserve video
  • A new video series from the Federal Reserve Board documents how community members in Cleveland, Phoenix, and Detroit are working to stabilize their neighborhoods in the wake of the foreclosure crisis.
  •  
    •
  • FOMC Statement
  • Information received since the Federal Open Market Committee met in March indicates that the economic recovery is proceeding at a moderate pace and overall conditions in the labor market are improving gradually.
  •  
    •
  • Changing Structure of US Manufacturing Is Focus of Cleveland Fed Conference
  • US manufacturing has experienced significant changes in organization, technologies, and location of production. Please join us on May 6, 2011, for a conference at the Federal Reserve Bank of Cleveland.
  •  
    •
  • President Pianalto Discusses Current Issues in U.S. Monetary Policy
  • In a speech at a Global Interdependence Center conference in Rome, Italy, Federal Reserve Bank of Cleveland President Sandra Pianalto discussed her outlook for U.S. economic growth and inflation, and the implications of that outlook for U.S. monetary policy.
  •  
    •
  • Federal Reserve Bank of Cleveland Announces Official Appointments
  • William Fosnight has been named senior vice president and general counsel, and Susan Steinbrick has been promoted to senior vice president and general auditor.
  •  
    •
  • President Pianalto Discusses Economic Outlook, Oil Prices, and Monetary Policy
  • In a speech to the Pittsburgh Chapter of the Association for Corporate Growth, President Pianalto presented her current outlook for the economic recovery and inflation, and described some risks to that outlook. She also discussed the Federal Reserve?s monetary policy and the benefits of an explicit inflation objective.
  •  
    •
  • Weakness in Household Balance Sheets Contributed to Slow Recovery, Say Cleveland Fed Researchers
  • During the financial crisis, the values of real estate and financial assets plunged, lowering household net worth. To get back on track, people switched from spending to saving. But the decreased consumption slowed down the recovery, write the Cleveland Fed’s Tim Bianco and Filippo Occhino.
  •  
    •
  • Great Recession a Spark for Entrepreneurship? Cleveland Fed Researcher Says No
  • Some economists say that the Great Recession was a spark for igniting entrepreneurship. Scott Shane, a visiting scholar at the Federal Reserve Bank of Cleveland, says it’s not so.
  •  
    •
  • President Pianalto participates in discussion on The Economy: Expectations, Risks, and Opportunities 2011 and Beyond
  • In a panel discussion at the University of Akron in Akron, Ohio, Federal Reserve Bank of Cleveland President and CEO Sandra Pianalto gave a brief overview of her current outlook for the economic recovery and for inflation.
  •  
    •
  • The Future of Financial Market Regulation
  • The Winter 2011 issue of Forefront, the Cleveland Federal Reserve’s magazine of policy ideas, is now available. Read about the latest in financial market regulatory reform efforts, plus find videos and multimedia presentations.  ()
  •  
    •
  • Promoting Homeownership: Down Payment Assistance Superior to Rate Subsidies, Says Cleveland Fed Researcher
  • Policies that promote homeownership generally have two goals: making homeownership accessible (affordable) and making it sustainable (creating homeowners who maintain their properties and do not default).
  •  
    •
  • Forecasting at the Fed
  • Economic forecasting at the Fed isn’t as simple as trying to predict where the economy might be heading. It also involves estimating how monetary policy actions the Fed is considering will likely affect the economy in ways that encourage full employment and stable prices. In its latest Drawing Board video, the Federal Reserve Bank of Cleveland explains in layman’s terms how and why forecasting is conducted at the Fed. In a related item, Cleveland Fed researcher Brent Meyer takes a look at the Federal Open Market Committee’s economic projections.
  •  
    •
  • The Keys to Regional Growth
  • In a speech to the Summa Hospitals Women’s Board in Akron, Ohio, Federal Reserve Bank of Cleveland President and CEO Sandra Pianalto described how the recession and recovery have unfolded in both the U.S. and in her region. She also highlighted the importance of productivity in driving long-term economic growth, and discussed how education and innovation work together to improve our prosperity.
  •  
    •
  • Cleveland Fed Announces Appointments to Cleveland, Cincinnati, and Pittsburgh Boards and Federal Advisory Council
  • The Federal Reserve Bank of Cleveland announced the following appointments to its main office and branch boards of directors and to the Federal Advisory Council.
  •  
    •
  • High Unemployment after the Recession: Mostly Cyclical, but Adjusting Slowly
  • Unemployment has been so high for so long that some economists are suggesting that the underlying trend of the unemployment rate -- the so-called "natural rate of unemployment" -- must have risen over the course of the last recession, due to a substantial change in the structure of US labor markets.
  •  
    •
  • FOMC Statement
  • Information received since the Federal Open Market Committee met in December confirms that the economic recovery is continuing, though at a rate that has been insufficient to bring about a significant improvement in labor market conditions. Growth in household spending picked up late last year, but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit.
  •  
    •
  • Cleveland Fed Names Velimesis and Starks to Lead Office of Minority and Women Inclusion
  • Peggy Velimesis has been appointed director of the Federal Reserve Bank of Cleveland’s newly established Office of Minority and Women Inclusion (OMWI) and Assistant Vice President Diana Starks has also joined the Bank’s OMWI.
  •  
    •
  • Dodd-Frank Important Step in Addressing Too Big to Fail: Cleveland Fed Researchers
  • Will Title II of the Dodd-Frank Reform Act be the end of the too-big-to-fail problem? No, but it is "an important step" in addressing the problem, write Cleveland Federal Reserve Bank researchers James Thomson and Thomas Fitzpatrick. The researchers say that the Act’s orderly liquidation authority is a viable alternative to artificially keeping failing nonbank financial firms alive through an infusion of public funds and should send a clear signal to markets of how these firms will be resolved. Thomson and Fitzpatrick note that Title II is not meant to be the default procedure for winding up the affairs of troubled nondepository financial firms, and they expect that the majority of such firms will continue to be resolved in bankruptcy.
  •  
    •
  • Todd Clark Joins Federal Reserve Bank of Cleveland as Vice President
  • Todd Clark has been appointed a vice president at the Federal Reserve Bank of Cleveland, effective December 16, 2010. He is responsible for leading the Research Department’s Money, Financial Markets, and Monetary Policy Group.
  •  
    •
  • Falling Home Prices Constrain Small Business Borrowing
  • Small business borrowing declined during the recession and has not yet returned to pre-recession levels. Decreased demand for credit, declining creditworthiness of small business borrowers, an unwillingness of banks to lend money to small businesses, and tightened regulatory standards on bank loans have all been offered as explanations. Federal Reserve Bank of Cleveland research director Mark Schweitzer and Case Western Reserve University professor Scott Shane say other factors are also at play and could be harder to offset. Specifically, they note that the decline in home values has constrained the ability of small business owners to finance their businesses through mortgages or home equity lines of credit.
  •  
    •
  • FOMC Statement
  • The Federal Open Market Committee has authorized an extension through August 1, 2011, of its temporary U.S. dollar liquidity swap arrangements with the Bank of Canada, the Bank of England, the European Central Bank, the Bank of Japan, and the Swiss National Bank.
  •  
    •
  • Inflation forecasting: Simple stats outperform more complex models
  • Businesses and consumers rely on forecasts of inflation to help in their financial and economic decision making. Federal Reserve Bank of Cleveland researchers Brent Meyer and Mehmet Pasaogullari compared several ways of forecasting inflation and found that some simple statistics were more informative than the somewhat more complex models they tested. In particular, they say that consumer and professional surveys of inflation expectations forecast future inflation rather well. Read more.
  •  
    •
  • President Pianalto Speech: "The Recovery and Monetary Policy"
  • In a speech at Oberlin College, Federal Reserve Bank of Cleveland President and CEO Sandra Pianalto described the issues the Federal Reserve considers when making monetary policy decisions. She also gave her outlook on the economy and discussed why she decided that purchasing additional Treasury securities was the right course of action for the Federal Reserve.
  •  
    •
  • President Pianalto Speech: "My Perspective on Current Monetary Policy"
  • In a speech at Case Western Reserve University, Federal Reserve Bank of Cleveland President and CEO Sandra Pianalto discussed how the recovery is unfolding, focusing on the stubborn nature of high unemployment and her concern about our uncomfortably low rate of inflation. She also explained why she supported the Fed’s decision to purchase additional Treasury securities.
  •  
    •
  • Cleveland Fed Researcher Says: Your Credit Score Is Ranking, Not Score
  • Think you know what you’re looking at when you see your credit score? Maybe not, says Cleveland Fed Researcher Yuliya Demyanyk. Your score isn’t a rating of your credit worthiness; it’s a ranking of your credit worthiness compared to everyone else in the country at a specific point in time. This explains, for example, why your credit score can change when your credit behavior doesn’t. Or how the same credit score could qualify you for a loan at some point and time, and not at another point and time.  ()
  •  
    •
  • Cleveland Fed Contest: Students Can Show Their Stuff and Win Prizes!
  • The Federal Reserve Bank of Cleveland wants to shine the light on area high school students who have great ideas about changing their neighborhoods by encouraging them to participate in the Fed’s annual Creative Writing Contest. This year’s theme is "Be the Change You Want to See." The contest asks juniors and seniors in high school to explain in an essay, play, short story, or poem how they would improve their neighborhoods. As they craft their submissions, students must think about the economic impact of their actions, the costs and benefits of their endeavor, and whether there are any unintended consequences. Submission deadline is January 31, 2011. Top prize is a $500 savings bond. Each qualifying entry will be evaluated on comprehension, organization, conclusions, creativity, and clarity.
  •  
    •
  • The Impact of Foreclosures on the Housing Market
  • Research from the Federal Reserve Bank of Cleveland suggests the most effective way to deal with the negative impact of foreclosures on nearby housing prices depends on economic conditions in a particular neighborhood. In high-vacancy-rate neighborhoods, the main problem is that homes in foreclosure fall into disrepair due to owner neglect, and unkempt homes tend to bring down the value of nearby homes. In this situation, the best solution may be to speed the foreclosure process so a home can be sold quickly to someone who agrees to live in it (and presumably maintain upkeep). In neighborhoods with a low vacancy-rate, the main problem is that the price of neighborhood homes is pushed down by so many homes being on the market in one area. In this situation, the better solution may be to stagger the number of foreclosed properties that come onto the market to prevent the neighborhood from being flooded with too many foreclosed homes.
  •  
    •
  • Could Subprime Loans Be Contagious?
  • It has been well documented that people who live in poorer neighborhoods are more likely to take out subprime loans when purchasing a house than those living in more affluent neighborhoods. But new research by Francisca G-C Richter and Ben Craig suggests that there could also be a social component that influences who ends up with a subprime loan.
  •  
    •
  • Cleveland Fed Researchers Discuss Ohio Loan Mods
  • While more people are avoiding foreclosure because of a recent rise in loan modifications that include payment reductions, the foreclosure problem in Ohio remains large and doesn’t appear to be abating anytime soon. Most troubled loans in Ohio aren’t being successfully modified or recovering on their own, say Cleveland Fed researchers Francisca Richter, Lisa Nelson, and Youngme Seo, highlighting the need to consider and track alternative loss-mitigation strategies.
  •  
    •
  • Cleveland Fed Researcher Sheds Light on Shadow Inventory
  • About 4.1 million borrowers-nearly 1 in 10-are in foreclosure or near it. Their homes make up what’s been termed the "shadow inventory" and it’s about as high as it has ever been. As troubled borrowers lose their homes, a portion of this "shadow Inventory" could become real and add to the number of homes for sale. This could drive home prices down further, which might, in turn, cause more borrowers to default. In his research, Federal Reserve Bank of Cleveland economist Guhan Venkatu suggests several factors.
  •  
    •
  • Fall Issue of Forefront
  • Educating people may not sound terribly urgent during difficult economic times, but when it comes to creating jobs and finding people who have the skills to fill them, nothing is more important than education. The latest issue of Forefront presents a package of articles focused on the compelling returns to education.  ()
  •  
    •
  • Remarks to the Women’s Economic Round Table
  • Federal Reserve Bank of Cleveland President and CEO Sandra Pianalto participated in a panel discussion on "Vital Economic Issues Confronting the New Congress" sponsored by the Women’s Economic Round Table in New York City. Read her opening remarks.
  •  
    •
  • Compensation at financial firms may encourage excessive risk-taking
  • In the wake of the financial crisis, a topic of debate has been whether the compensation packages of executives at financial firms affect the performance of those firms. Researchers at the Cleveland Fed say their study of pay structures in the banking and finance industry reveals some problematic practices that may have encouraged "short-termism" and excessive risk-taking in some financial institutions.
  •  
    •
  • Unemployment after the Recession: A New Natural Rate?
  • While the unemployment rate has doubled over the recent business cycle, the underlying long-term trend in the rate -- the so-called "natural" rate of unemployment -- has inched up only modestly, to roughly 5.6-5.7 percent, say Federal Reserve Bank of Cleveland researchers Murat Tasci and Saeed Zaman, who also note that the actual unemployment rate may stay well above the natural rate for some time.
  •  
    •
  • Is U.S. Federal Debt Too Large?
  • Lately, there has been much talk about the perils of the growing government debt, but according to Federal Reserve Bank of Cleveland economist Pedro Amaral, that fear may be misguided. Amaral argues that growth in entitlement spending from programs such as Social Security and Medicare could be more problematic than current increases in Federal appropriations.  ()
  •  
    •
  • Can we curtail a rising tide of foreclosures with lessons learned on the farm?
  • Two researchers at the Federal Reserve Bank of Cleveland argue that some lessons could be learned from examining the farm foreclosure crisis in the 1980s.
  •  
    •
  • Cleveland Fed Researchers Examine Derivatives
  • Federal Reserve Bank of Cleveland researchers Kent Cherny and Ben Craig discuss some of the benefits of moving the settlement or trading of derivative instruments onto exchanges or clearinghouses, similar to those currently being used for stocks and options.
  •  
    •
  • Inflation expectations still well anchored, according to Cleveland Fed researchers
  • Researchers at the Federal Reserve Bank of Cleveland have developed a simple measure of inflation expectations that provides some advantages over other commonly used measures.
  •  
    •
  • President Pianalto addresses Ohio Northern graduating class
  • Federal Reserve Bank of Cleveland President and CEO Sandra Pianalto addressed the graduating class at Ohio Northern University on Sunday, May 23.
  •  
    •
  • Sticky prices signal subdued inflation
  • Some prices are "sticky," meaning they don’t respond to changing market conditions as quickly as other, more "flexible" prices. According to Federal Reserve researchers Michael Bryan and Brent Meyer, these sticky prices are useful when trying to discern where inflation is heading. Looking at the "sticky price" components of the Consumer Price Index (CPI), the researchers say that "subdued for some time" -- language from the last FOMC statement -- sums up expected price trends nicely. They note that while a core flexible-price measure of the CPI has risen recently, the growth rate of the core sticky-price CPI continues to decline.
  •  
    •
  • Student Economics Research Winners Announced
  • The second annual University of Akron and Federal Reserve Bank of Cleveland Undergraduate Research Poster Competition was held on April 30, 2010. Undergraduate economics students from seven Ohio colleges presented original research on a variety of topics. Presentations were judged by Federal Reserve economists and an area economics professor.
  •  
    •
  • President Pianalto discusses "Forecasting in Uncertain Times"
  • In a speech to the Economic Club of Pittsburgh, Federal Reserve Bank of Cleveland President and CEO Sandra Pianalto discussed why and how the Bank develops its economic forecasts and why the role of judgment becomes paramount for forecasting during uncertain times such as these. She concluded the speech with her current economic outlook.
  •  
    •
  • Spring Issue of Forefront
  • In the latest issue of Forefront, researchers at the Federal Reserve Bank of Cleveland propose changes to the Community Reinvestment Act (CRA) to make it a more effective tool for improving conditions in low-income neighborhoods in our post-crisis era.  ()
  •  
    •
  • Federal Reserve Releases Financial Statements
  • The Federal Reserve System on Wednesday released the 2009 annual comparative financial statements for the combined Federal Reserve Banks, the 12 individual Federal Reserve Banks, the limited liability companies (LLCs) that were created to respond to strains in financial markets, and the Board of Governors.
  •  
    •
  • President Pianalto shares her economic outlook
  • In a speech to business leaders in Fort Meyers, Florida, Federal Reserve Bank of Cleveland President and CEO Sandra Pianalto shared her economic outlook and discussed some significant headwinds that she expects will limit the rate of growth in the US for the next couple of years. She also discussed how the Federal Reserve is conducting monetary policy to help navigate through these challenging times.
  •  
    •
  • Federal Reserve Banks Complete Check Processing Infrastructure Changes
  • The Federal Reserve Banks announced today that they have completed the reduction in paper check processing infrastructure that was begun in late 2003.
  •  
    •
  • Regulatory Filing is Now Easier!
  • Electronic Applications, or "E-Apps," is a new Internet-based system that allows financial institutions supervised by the Federal Reserve to submit applications and other regulatory filings online, eliminating the time and expense of printing, copying, and mailing documents. Registered users can access the system 24/7, free of charge. E-Apps has been designed to ensure the confidentiality of the data and the identity of the filers. Find out more
  •  
    •
  • Dale Roskom Named Federal Reserve Bank of Cleveland First Vice President and Chief Operating Officer
  • The Federal Reserve Bank of Cleveland has appointed Dale Roskom as the Bank’s first vice president and chief operating officer. The announcement was made today by Sandra Pianalto, president of the Cleveland Reserve Bank.
  •  
    •
  • Federal Reserve approves final rules to protect credit card users from a number of costly practices
  • The Federal Reserve approved final rules to protect credit card users from a number of costly practices. Consumers can learn more by accessing a new online publication, What You Need to Know: New Credit Card Rules.
  •  
    •
  • Cleveland Federal Reserve Launches New Policy Pub
  • Economic policy is in the forefront of a lot of people’s minds today, and the Federal Reserve Bank of Cleveland is debuting a new online and print publication devoted to critical policy issues facing its region and the nation at-large.
  •  
    •