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Bank Of America Investment Federal Reserve Chairman Alan Greenspan said bankers are using complex financial instruments such as derivatives and improved technology to assess and manage risk.If you would like to receive late breaking news on stocks covered by AXcess News then you need to subscribe. By joining, you can stay ahead of the pack and receive the latest news in your email in-box first.Print This Page

Feb 2, 2005 (AXcess News) The Fed raised key interest rate a quarter of a point Wednesday which marked the Central Banks sixth rate hike for fed fund rates, bringing bank lending rates to 2.5 percent.The Fed fund rate increase came as no surprise to the market after the Central Bank' makers, led by Alan Greenspan, Chairman.

Investment Opportunity Oct 5, 2004 (AXcess News) New York - The top U.S. central banker says the country's banking system has weathered a recession and major corporate bankruptcies, and emerged "strong, vibrant and profitable."In a New York speech to a banking group Tuesday, Federal Reserve Chairman Alan Greenspan said bankers are using complex financial instruments such as derivatives and improved technology to assess and manage risk.He says this helps bankers run their businesses better, makes the financial system more resilient and contributes to a stable economy.

rate futures show around a 90% chance that the Fed will lower its 4.75% overnight lending rate between banks by at least a 0.25% point on Wednesday.

Banc Of America Investment Mr. Greenspan also said a wave of bank consolidations in the United States helps make these institutions "less inefficient."Source: Voice of AmericaAdvertisementAXcess News will be reporting on any new market trends related to this story. Members should watch their in-box for late breaking news. If you're not a member, consider joining now. Members get the latest business news, commentaries and stock picks delivered right to their in-box.

This worry has further increased each time one of the Fed governors address the issue. It is the role of the central bank to control the supply of money and set interest rates to control the rate of economic expansion. Under the Greenspan regime, they have controlled money supply by using analysis of how much money there is currently in circulation. His successor might use another school of thought, one that seeks to control the quality of the money circulating as opposed to the quantity.

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