Jeffrey M. Lacker, President, Federal Reserve Bank of Richmond Statement on Dissenting Vote at FOMC Meeting January 25, 2012

At today's FOMC meeting, President Jeff Lacker cast the lone dissent in opposition of the time period for keeping low the federal funds rate.

Students from Anderson University won the Federal Reserve Bank of Richmond’s second annual Share the Wealth financial literacy video contest.

The Federal Reserve Board of Governors appointed the following director for the Charlotte office, effective Jan. 18, 2012.

The Boards of Directors for the Federal Reserve Bank of Richmond’s Baltimore and Charlotte offices elected chairpersons.

The Federal Reserve Board of Governors and the Federal Reserve Bank of Richmond Board of Directors appointed Directors for the Baltimore and Charlotte offices.

The "Beige Book" report is published eight times per year and consists of anecdotal information on current economic conditions from each Federal Reserve.

Directors of the Federal Reserve Bank of Richmond have reappointed Richard D. Fairbank, Chairman and Chief Executive Officer of Capital One Financial Corp. of McLean, Va., to serve as the Fifth District's representative on the Federal Advisory Council.

No Change in Federal Funds Rate

The Federal Reserve Bank of Richmond has named the chair of its Community Investment Council for 2012 and announced two new members.

The Board of Governors of the Federal Reserve System has appointed the chair and deputy chair of the Board of Directors for the Federal Reserve Bank of Richmond for 2012.

The Richmond Fed is sponsoring a conference with the Federal Reserve Board of Governors focusing on identifying innovative ways to use data to spur more strategic investment in older communities.

Jeffrey M. Lacker, President, Federal Reserve Bank of Richmond Statement on Dissenting Vote at FOMC Meeting November 28, 2011

The Fifth Federal Reserve District member banks elected the following directors of the Federal Reserve Bank of Richmond for three-year terms effective Jan. 1, 2012:

With unemployment above 9 percent for more than two years, policymakers are grappling with how to create jobs. But many proposals, such as more fiscal stimulus, temporary tax breaks, and subsidies for private hiring, may not have the punch that their supporters hope. The cover story in the latest issue of Region Focus magazine looks at these and other job-creation concepts.

The Federal Reserve Bank of Richmond announces the appointment of Michael D. Stough as senior vice president and general auditor.

The University of North Carolina won the Federal Reserve Bank of Richmond's annual College Fed Challenge. The UNC team won the Fifth District title in competition with finalists Old Dominion University of Norfolk, Va., and Loyola University of Baltimore

Old Dominion University of Norfolk, Va., won a preliminary round of the College Fed Challenge competition, held Nov. 4, at the Federal Reserve Bank of Richmond.

Loyola University of Baltimore won the preliminary round of the College Fed Challenge Competition held Nov. 2 at the Federal Reserve Bank of Richmond's Baltimore branch.

The University of North Carolina won the preliminary round of the College Fed Challenge competition held Nov. 1 at the Federal Reserve Bank of Richmond’s Charlotte branch office.

The FOMC decided today to continue its program to extend the average maturity of its holdings of securities as announced in September.

The "Beige Book" report is published eight times per year and consists of anecdotal information on current economic conditions from each Federal Reserve.

Bennett T. McCallum of Carnegie Mellon University and the National Bureau of Economic Research and a visiting scholar at the Richmond Fed discusses whether central banks should set higher inflation targets, such as 4 percent rather than 2 percent. Some economists have argued that because providing monetary stimulus when interest rates are at the zero lower bound is more difficult, central banks should consider increasing their inflation rate targets. McCallum notes that the benefits of providing additional monetary stimulus at the zero lower bound must be weighed against the costs of maintaining higher inflation outside of that scenario. To make that comparison, he explores pertinent research and theory, including Milton Friedman’s “optimal quantity of money” result, New Keynesian literature on resource misallocation caused by price stickiness that affects only some sellers, and the contention that the zero lower bound does not necessarily constitute a limit to monetary stimulus.

FOMC leaves target funds rate unchanged.

In the wake of the crisis in U.S. housing markets, policymakers are considering how to reform mortgage finance. Many other developed nations intervene in housing finance to a lesser degree than the United States does—can their experiences provide some insight? The cover story in the latest issue of Region Focus magazine puts U.S. housing finance in an international context.

FOMC leaves target funds rate unchanged.

Tourists, students, teachers, community and business groups, and Richmond-area residents are among the 11,000 people who have visited The Fed Experience since it opened last summer at the Federal Reserve Bank of Richmond.

In this housing-themed issue of Economic Quarterly, Sonya Ravindranath Waddell, Anne Davlin, and Edward Simpson Prescott of the Richmond Fed explore the role of house prices and labor market conditions in mortgage default. The authors focus their research on default rates in the Fifth District, looking in particular at Prince William County, Va., and Charlotte, N.C. Using a simple model of MSA fixed effects to examine variation in foreclosure rates, they find that declining house prices are a key factor in escalating subprime and prime foreclosure rates. The analysis explores how default rates vary among localities, revealing that the decision to default depends not only on national and statewide factors, but also on local conditions.

The Federal Open Market Committee decided today to keep the target range for the federal funds rate at zero to one-quarter percent.

The Federal Reserve Bank of Richmond, in collaboration with national, regional, and local partners, is holding several events from June 20-25. The events focus on housing and community financing and are being held at the Bank's Baltimore Branch, located at 502 S. Sharp St.

The story of how a Brooklyn ice cream shop was used as a front for an unlicensed and unregistered money-remittance operation will be told at the BSA Coalition's 2011 Anti-Money Laundering Conference. The conference is being held June 28 at the Federal Reserve Bank of Richmond, starting at 8:30 a.m.

The Federal Reserve Bank of Richmond will hold a workshop for nonprofit organizations seeking to recruit business and financial professionals to their boards.

The Federal Reserve Bank of Richmond has published its latest 5th District Footprint, which maps the presence of broadband infrastructure across the Fifth District.

The Federal Reserve Bank of Richmond today released its 2010 Annual Report, which features the essay "The Rise in Long-Term Unemployment: Potential Causes and Implications."

The Federal Reserve Bank of Richmond, in partnership with the North Carolina Institute of Minority Economic Development and Fayetteville State University's Small Business Technology Development Center, is holding a forum for small business owners at Fayetteville State University on June 7.

Since late 2008, both inflation and nominal interest rates have been extremely low in the United States. These facts have focused attention on ideas motivated by the theory discussed in several articles by economists Jess Benhabib, Stephanie Schmitt-Grohé, and Martín Uribe—in particular, that an active Taylor rule, together with a moderate inflation target, could have the unintended consequence of leading the economy to undesirably low inflation with a near-zero nominal interest rate.

The Federal Reserve Bank of Richmond announces the following officer appointments:

The Federal Reserve Bank of Richmond has received the Diversity Excellence Award and the Best Recruitment, Engagement and Retention Practices for large-sized businesses in the annual Employer All Star Awards.

The Federal Reserve Bank of Richmond has added a new section on its website to share its views on a range of policy issues that affect the national economy.

The Federal Open Market Committee will continue to expand its holdings of securities as announced in November and will maintain the target range for the federal funds rate.

The recent financial crisis caught many economists by surprise. Were they studying the wrong things? If so, how did it come to be that way — and will the financial crisis bring about a fundamental change in economic research? The cover story in the latest issue of Region Focus puts these questions into historical context.

The "Beige Book" report is published eight times per year and consists of anecdotal information on current economic conditions from each Federal Reserve.

The Federal Reserve Bank of Richmond's latest online publication, "5th District Footprint," provides a spatial analysis of various types of issues affecting communities in the region. The publication will be available online six times a year.

The Federal Reserve Bank of Richmond announces director appointment.

The Federal Reserve Bank of Richmond announces officer appointments.

The Federal Reserve System on Tuesday released the 2010 combined annual comparative financial statements for the Federal Reserve Banks, as well as for 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. These financial statements are audited annually by an independent auditing firm.

To promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate, the Federal Open Market Committee voted to continue expanding its holdings of securities as announced in November. The committee also voted to maintain the target federal funds rate.

The Federal Reserve Bank of Richmond announced the formation of a Community Investment Council and the appointment of members.

The Federal Reserve Bank of Richmond is holding a forum on community land trusts on March 17, 2011, in Winston-Salem, N.C. Community Land Trusts: A Model for Neighborhood Stabilization and Revitalization will feature consultants from Burlington Associates, a leading provider of technical assistance to community land trusts in the United States, discussing how to effectively use land trusts to support neighborhood stabilization efforts and preserve long-term affordable housing.

The Federal Reserve Bank of Richmond announces the following officer appointment.

The "Beige Book" report is published eight times per year and consists of anecdotal information on current economic conditions from each Federal Reserve.

Richmond Fed Forms Community Depository Institutions Advisory Council

Economists have declared that the latest recession stretched from December 2007 to June 2009 -- making it the longest downturn since the Great Depression. Moreover, while the recovery is under way, weaknesses still persist, especially in the labor market. The cover story of the latest issue of Region Focus looks at the causes of recoveries and examines what policymakers can do to hasten them and which factors are often beyond their control.

The Federal Open Market Committee voted to continue its purchase of Treasury securities to promote a stronger pace of economic recovery and to help ensure that inflation, over time, is consistent with the Federal Reserve's mandate. The committee also maintained the target federal funds rate.

The Federal Reserve Bank of Richmond has hired William S. Cooper, Jr., as vice president and deputy director for diversity and inclusion.

The "Beige Book" report is published eight times per year and consists of anecdotal information on current economic conditions from each Federal Reserve.

The Federal Reserve Bank of Richmond is holding a forum to help provide knowledge and resources for minority and women small business owners.

The Federal Reserve Board of Governors and the Federal Reserve Bank of Richmond Board of Directors appointed the following for three-year terms as directors for the Baltimore and Charlotte branch offices, effective Jan. 1, 2011.

The boards of directors of the Federal Reserve Bank of Richmond's Baltimore and Charlotte branch offices elected the following to serve one-year terms as chairmen, effective Jan. 1, 2011.

In the new issue of Economic Quarterly, Kartik B. Athreya and Devin Reilly of the Richmond Fed and Nicole B. Simpson of Colgate University consider several relatively overlooked aspects of the Earned Income Tax Credit (EITC), the largest federal cash-assistance program for lower income families.

David E. Beck, a senior vice president and regional executive for the Federal Reserve Bank of Richmond's Baltimore Branch, has completed Leadership Maryland's eight-month leadership development program.

The FOMC voted to maintain its plans to buy $600 billion in Treasury bonds over the next several months.

The Federal Reserve Bank of Richmond announces the following officer appointments.

The Federal Reserve Bank of Richmond is hosting a movie premiere for its Share the Wealth: A Financial Literacy Video contest to present awards to the winning financial education videos.

Millions of Americans receive -- or plan to receive -- retirement benefits from public pension plans. But the financial viability of many of those plans has come under scrutiny recently. Some observers worry that already precarious funding levels are likely to worsen, while others believe they will gradually improve as the economy recovers. The cover story of the latest issue of Region Focus examines this looming issue and considers options for putting public pensions on track toward better financial health.

The "Beige Book" report is published eight times per year and consists of anecdotal information on current economic conditions from each Federal Reserve.

The Federal Reserve Bank of Richmond announces a new officer appointment.

Virginia Commonwealth University of Richmond, Va., won the district title in the Federal Reserve Bank of Richmond's annual College Fed Challenge.

Virginia Commonwealth University of Richmond, Va., won a preliminary round of the College Fed Challenge competition, held Nov. 9, at the Federal Reserve Bank of Richmond.

The Federal Reserve Bank of Richmond, along with several South Carolina partners, is holding a forum on small business credit issues on Nov. 16, 2010, at Midlands Technical College's Northeast Campus at the Center of Excellence for Technology in Columbia, S.C.

Mount St. Mary's University of Emmitsburg, Md., won the preliminary round of the College Fed Challenge competition, held Nov. 2, at the Federal Reserve Bank of Richmond's Baltimore branch.

The Federal Open Market Committee today voted to purchase $600 billion in longer-term Treasury securities by the end of the second quarter of 2011, at a pace of about $75 billion per month. The move is intended to support the economic recovery and the movement of inflation toward rates that the committee views as consistent with its mandate. The FOMC also voted to maintain the target federal funds rate of zero to ¼ percent.

The University of North Carolina at Chapel Hill, Chapel Hill, N.C. won the preliminary round of the College Fed Challenge Competition held November 2 at the Charlotte Branch, Federal Reserve Bank of Richmond.

The Federal Reserve Bank of Richmond and the National Consumer Law Center, with the support of the Annie E. Casey Foundation, are hosting a national forum on cars and working families on October 29, 2010, at the Federal Reserve Board of Governors in Washington, D.C.

The Federal Reserve Bank of Richmond's Community Affairs department is holding a forum on community land trusts on October 26, 2010. Community Land Trust: A Shared Equity Model will feature consultants from Burlington Associates, discussing how to effectively use the land trusts to preserve long-term affordable homeownership and stabilize neighborhoods impacted by foreclosure.

The Fifth Federal Reserve District member banks elected the following directors of the Federal Reserve Bank of Richmond for three-year terms effective Jan. 1, 2011.

The "Beige Book" report is published eight times per year and consists of anecdotal information on current economic conditions from each Federal Reserve.

Directors of the Federal Reserve Bank of Richmond have reappointed Richard D. Fairbank, chairman and chief executive officer of Capital One Financial Corp. of McLean, Va., to a second term as the Fifth Federal Reserve District's representative on the Federal Advisory Council. The new term begins Jan. 1, 2011.

The Federal Reserve Bank of Richmond's Community Affairs Department has released an online compilation of maps using public data compiled for the Fifth Federal Reserve District – Virginia, Maryland, North Carolina, South Carolina, the District of Columbia and most of West Virginia.

The Board of Governors offers live streaming video of the final in a series of four hearings on potential revisions to Regulation C, which implements the Home Mortgage Disclosure Act. Hearing is scheduled Sept. 24 from 9 a.m. until 4 p.m.

The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels for the federal funds rate for an extended period.

The Federal Reserve Bank of Richmond announces the following officer appointments.

As students return to classes for another year of academic achievements and challenges, employees of the Federal Reserve Bank of Richmond are expanding the mentoring assistance they provide to students at a Richmond high school through an innovative online program.

The "Beige Book" report is published eight times per year and consists of anecdotal information on current economic conditions from each Federal Reserve.

Economists have long debated how important deficit spending is to macroeconomic outcomes. Most economists now agree that deficits are not inherently inflationary, but they differ on the effects of fiscal imbalances on interest rates and other economic variables.

In the new issue of Economic Quarterly Yash Mehra and Bansi Sawhney examine whether monetary policy actions during the Greenspan era, in particular between 2002 and 2006.

The Federal Open Market Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period.

The "Beige Book" report is published eight times per year and consists of anecdotal information on current economic conditions from each Federal Reserve.

The Board of Governors of the Federal Reserve System has appointed the chairman and deputy chairman of the Board of Directors for the Federal Reserve Bank of Richmond for 2011.

The Federal Reserve Bank of Richmond and the Opportunity Finance Network will host the 2010 Opportunity Finance Network Southeast Regional Meeting on July 19 and 20 in Richmond.

The Community Affairs Department of the Richmond Fed is launching an online data repository designed to streamline local community development data from the U.S. Census Bureau's American Community Survey.

The Federal Reserve Bank of Richmond today unveiled The Fed Experience, an interactive, multimedia exhibit designed to bring the economy to life. Featuring real-life stories from Federal Reserve employees, their families and people in communities the Richmond Fed serves, the exhibit helps visitors understand how stable prices over time affect living standards.

The Federal Open Market Committee voted to maintain the target range for the federal funds rate at 0 to 1/4 percent, with information received since the last meeting in April suggesting that the economic recovery is proceeding and that the labor market is improving gradually.

As part of the Federal Reserve System’s ongoing series Addressing the Financing Needs of Small Business, the Federal Reserve Bank of Richmond is hosting a small business roundtable on June 14, 2010, from 8:30 a.m. to 10:30 a.m. at its Baltimore branch. This roundtable is one in a series of forums on small business access to credit and support services being held across the country.

This special issue of Economic Quarterly is devoted to Douglas Diamond and Philip Dybvig's seminal 1983 article on bank fragility and banking regulation, which continues to provide insights for today's policymakers and researchers.

The "Beige Book" report is published eight times per year and consists of anecdotal information on current economic conditions from each Federal Reserve.

The Federal Reserve Bank of Richmond today released its 2009 Annual Report, which features the essay, "Systemic Risk and the Pursuit of Efficiency."

The Federal Reserve Bank of Richmond has received the Diversity Excellence Award for large-sized businesses in the annual Employer All Star Awards. The awards are presented by the Richmond chapter of the Society for Human Resource Management, the Greater Richmond Chamber and the Richmond Times-Dispatch.

The cover story in this issue of Region Focus considers whether there is a new -- and higher -- "natural" rate of unemployment that will help to define the labor market over the long run.

The Federal Reserve Bank of Richmond, the Capital Area Foreclosure Network and Fannie Mae are hosting the Washington Metro Area Tenants Conference to help educate mortgage servicers, realtors, local government representatives, housing counselors and attorneys on new federal and state laws for tenants facing foreclosure.

The Federal Reserve Bank of Richmond is teaming with Civil Justice Inc., a Maryland nonprofit public interest law firm, to host the second free basic training for attorneys on how to review home purchase contracts and mortgage loan documents.

The Federal Reserve Bank of Richmond is holding a forum on small business credit issues on April 20 from 8:30 a.m. until 1 p.m. in the William and Ida Friday Center for Continuing Education at the University of North Carolina in Chapel Hill, N.C.

Students from Chantilly High School in Chantilly, Va., won the Fifth District championship round of the 2010 Fed Challenge competition held at the Federal Reserve Bank of Richmond.

The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period.

The Federal Reserve Bank of Richmond joins Housing Opportunities Made Equal and the city of Richmond to help co-sponsor a home preservation clinic to help Virginia homeowners who may be at risk of foreclosure. Free foreclosure counseling sessions and fraud prevention counseling will be offered on April 24 from 9 a.m. to 4 p.m. at the Blackwell Community Center at 300 E. 15th Street in Richmond.

The Federal Reserve System on Wednesday published the annual financial statements for the combined Federal Reserve Banks, the 12 individual Federal Reserve Banks and several limited liability companies (LLCs) that have been consolidated with the Federal Reserve Bank of New York.

Collegiate School students won the preliminary round of the Federal Reserve's 2010 High School Fed Challenge competition held in Richmond on April 19.

The "Beige Book" report is published eight times per year and consists of anecdotal information on current economic conditions from each Federal Reserve.

Chantilly High School students from Chantilly, Virginia, won the preliminary round of the Federal Reserve’s 2010 High School Fed Challenge competition held at the Baltimore Branch on April 12th, 2010.

The Federal Reserve Bank of Richmond has promoted Jennifer J. Burns to the role of senior vice president with responsibility for the Bank's Supervision, Regulation and Credit function as of April 1, 2010.

The Federal Reserve Bank of Richmond and Civil Justice Inc., a Maryland nonprofit public interest law firm, will sponsor pro bono attorney training as part of the Maryland Mortgage Fraud Prevention Project.

The FOMC voted to maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period.

The Federal Reserve Bank of Richmond announces the following officer appointments effective March 1, 2010 and March 15, 2010.

The featured article in this issue of Region Focus surveys the debate over the efficient market hypothesis in the wake of the financial crisis.

The FOMC voted to maintain the target federal funds rate at zero to 1/4 percent, stating that although economic activity continues to strengthen and deterioration in the labor market is easing, subdued inflation trends and stable inflation expectations are likely to warrant exceptionally low levels of the rate for an extended period.

The "Beige Book" report is published eight times per year and consists of anecdotal information on current economic conditions from each Federal Reserve.

At the aggregate level, employment can be well explained by a relatively small number of factors. But when individual sectors are examined, things are quite different, according to findings by Richmond Fed economist Pierre-Daniel Sarte and research assistant Nadezhda Malysheva. Their results suggest that across all goods and services, common shocks explain on average only 31 percent of the variation in sectoral employment. "In other words, employment at the sectoral level is driven mostly by idiosyncratic shocks, rather than common shocks, to the different sectors," the authors write.

The Federal Open Market Committee voted today to maintain the target range for the federal funds rate at zero to 1/4 percent, stating that economic activity has continued to pick up, deterioration in the labor market is abating and inflation is expected to remain subdued for some time.

The Federal Reserve Bank of Richmond will host the Maryland Renters and Foreclosure Conference on Thurs., Dec. 17, which will explore the impact on state renters of the new federal Protecting Tenants at Foreclosure Act (PTFA).

Lafayette College, of Easton, Pa., won the College Fed Challenge national competition, held at the Federal Reserve Board in Washington, D.C..

The "Beige Book" report is published eight times per year and consists of anecdotal information on current economic conditions from each Federal Reserve.

Richard D. Fairbank was appointed to a one-year term as the Fifth Federal Reserve District's representative on the Federal Advisory Council, starting on January 1, 2010.

The Fifth Federal Reserve District member banks elected Wilbur E. Johnson as director of the Federal Reserve Bank of Richmond for three-year terms effective Jan. 1, 2010.

The Boards of Directors for the Federal Reserve Bank of Richmond's Baltimore and Charlotte Offices re-elected chairpersons for one-year terms effective Jan. 1, 2010.

The Federal Reserve Board of Governors and the Federal Reserve Bank of Richmond Board of Directors appointed directors for the Baltimore and Charlotte branches, effective Jan.1, 2010.

The Federal Reserve Bank of Richmond announces the following officer appointments effective Jan. 1, 2010.

The cover story of this issue of Region Focus looks at how recent economic research can help us better understand quality of life.

Lafayette College, of Easton, Pa., won the district title in the Federal Reserve Bank of Richmond's annual College Fed Challenge.

Ellen Janes, regional manager for community development in Baltimore for the Federal Reserve Bank of Richmond, has been named the winner of the 2009 Frances Morton Froelicher Civic Statesman Award, given by the Citizens Planning and Housing Association.

Lafayette College, Easton, Pa., won the preliminary round of the College Fed Challenge Competition held Nov. 2–4 at the Federal Reserve Bank of Richmond's Baltimore branch.

A team representing the University of North Carolina, Chapel Hill, N.C., won the preliminary round of the College Fed Challenge Competition held Nov. 4 at the Charlotte branch of the Federal Reserve Bank of Richmond.

The FOMC stated that economic activity has continued to pick up. The committee voted to maintain the federal funds rate target range, adding that economic conditions, including subdued inflation trends and stable inflation expectations, are likely to warrant exceptionally low levels of the rate for an extended period.

James Madison University, of Harrisonburg, Va., won the preliminary round of the College Fed Challenge Competition held Oct. 26 at the Federal Reserve Bank of Richmond.

The "Beige Book" report is published eight times per year and consists of anecdotal information on current economic conditions from each Federal Reserve.

The "Beige Book" report is published eight times per year and consists of anecdotal information on current economic conditions from each Federal Reserve.

The Federal Reserve Bank of Richmond will present research that identifies and analyzes possible gaps in service areas for community development financial institutions in the Southeast at a conference Oct. 27.

The Federal Reserve Bank of Richmond announces the following officer appointments effective Sept. 28, 2009 and Oct. 1, 2009.

General equilibrium theory — a starting point for much economic analysis — suggests that market allocations are efficient and that the societally preferred level of income redistribution can in principle be achieved by non-distortionary lump-sum taxes and transfers. But when governments do not possess sufficiently fine information about people’s preferences, this finding does not hold. Richmond Fed economist Borys Grochulski studies the use of distortionary taxes — taxes that alter people’s incentives – to achieve a given level of redistribution.

The Federal Open Market Committee said today that information suggests economic activity has picked up, with financial market conditions improving and housing sector activity increasing. The FOMC voted to maintain the target federal funds rate range at zero to 1/4 percent. President Lacker voted for today's actions.

The Board of Governors of the Federal Reserve System has reappointed the chair and deputy chair of the Board of Directors for the Federal Reserve Bank of Richmond, effective Jan. 1, 2010.

The Federal Reserve Bank of Richmond and The Belk College of Business at UNC Charlotte will host a panel discussion, "Moving Forward in the New Economy." The program will take place Tuesday, Sept. 22 from 5:00 to 8:00 p.m. at UNC Charlotte's Harris Alumni Center.

The cover story of this issue of Region Focus considers what role credit rating agencies played in contributing to the financial crisis and examines proposals to reform those agencies.

The cover story of this issue of Region Focus considers what role credit rating agencies played in contributing to the financial crisis and examines proposals to reform those agencies.

As more homeowners find themselves at risk of foreclosure, knowing where to turn for guidance becomes increasingly important. The Federal Reserve Bank of Richmond is joining HOPE NOW, Making Home Affordable, the Maryland Department of Housing and Community Development and NeighborWorks America to sponsor two free, public events for borrowers in greater Washington, D.C., who are facing foreclosure.

A report by the Federal Reserve Bank of Richmond shows that, on the whole, housing and labor market conditions in West Virginia have remained stronger than those in the rest of the nation.

The Federal Open Market Committee voted unanimously today to maintain the target for the federal funds rate at 0 to 1/4 percent. The FOMC says information since its June meeting suggests economic activity is leveling out. President Jeff Lacker votes this year on FOMC actions.

The Federal Reserve Bank of Richmond announces the following officer promotions effective Aug. 1, 2009

The "Beige Book" report is published eight times per year and consists of anecdotal information on current economic conditions from each Federal Reserve.

Federal Reserve Chairman Ben Bernanke appears again tonight with Jim Lehrer, PBS news anchor and executive director of The NewsHour with Jim Lehrer. This is the second segment of the three-night special that started July 27. The Chairman fields citizens' questions on the nation's economy.

The Federal Reserve Bank of Richmond has hired Bruce Grinnell as vice president of corporate support services.

The Federal Reserve Bank of Richmond has hired Michelle Gluck as senior vice president and general counsel. Gluck will join the organization's senior leadership team as of July 31, and will lead the legal team in providing counsel for the Bank's critical business activities. Gluck succeeds James McAfee, who retired in May.

A report by the Federal Reserve Bank of Richmond found that mortgage performance in North Carolina weakened in the first quarter of 2009, but not to the same degree as in other parts of the Fifth District and the nation as a whole.

A report by the Federal Reserve Bank of Richmond shows that rising unemployment, not house price decline is the most significant factor underlying mortgage foreclosures in South Carolina.

The Consolidation of Financial Regulation: Pros, Cons, and Implications for the United States by Sabrina R. Pellerin, John R. Walter, and Patricia E. Wescott

The "Beige Book" report is published eight times per year and consists of anecdotal information on current economic conditions from each Federal Reserve.

A report by the Federal Reserve Bank of Richmond shows that mortgages in Maryland and the District of Columbia generally have performed better than the national average, despite volatility in house prices and a rising rate of delinquencies and foreclosures.

The Federal Reserve Bank of Richmond today released its 2008 Annual Report, which features the essay "The Financial Crisis: Toward an Explanation and Policy Response."

A report by the Federal Reserve Bank of Richmond shows that despite pockets of foreclosures and delinquencies, Virginia mortgages overall are performing better than the national average.

The Fifth Federal Reserve Bank of Richmond's Board of Directors appointed John S. Kreighbaum as director to fill the Charlotte board's term ending Dec. 31, 2009

Information received since the Federal Open Market Committee met in March indicates that the economy has continued to contract, though the pace of contraction appears to be somewhat slower.

The Federal Reserve Bank of Richmond has promoted Dennis McDonald as vice president of the regional law enforcement division, which is based in Richmond.

Many people presume that financial innovations over the last 30 years that have made it easier for households to borrow against the collateral value of their homes have increased the demand for housing and, as a result, house prices.

The Federal Reserve System on Thursday published the annual financial statements for the combined Federal Reserve Banks, the 12 individual Federal Reserve Banks, the limited liability companies (LLCs) that were created in 2008 to respond to strains in financial markets, and the Board of Governors for the years ended December 31, 2008 and 2007.

The "Beige Book" report is published eight times per year and consists of anecdotal information on current economic conditions from each Federal Reserve.

Students from Collegiate School in Richmond, Va., won the Fifth District championship round of the 2009 Fed Challenge competition held today at the Federal Reserve Bank of Richmond. This year's winning team included Margaret Barton, Randall Drumheller, Mason Rayner, Harrison Roday, Morgan Tarrant and alternate, Alex Daniel. The team was coached by Robert Wedge.

Chantilly High School students won the preliminary round of the Federal Reserve's 2009 High School Fed Challenge competition held at the Baltimore Branch on April 1st, and 2nd, 2009.

Growing numbers of homeowners in the region are at risk of foreclosure and may be unsure of where to turn for guidance.

This joint statement reflects the common views of the Treasury and the Federal Reserve on the appropriate roles of the Federal Reserve and the Treasury during the current financial crisis and in the future and on the steps necessary to ensure that both financial and monetary stability will be achieved.

Collegiate School students won the preliminary round of the Federal Reserve's 2009 High School Fed Challenge competition held March 20, at the headquarters office in Richmond. This year's winning team included Margaret Barton, Alex Daniel, Randall Drumheller, Harrison Roday, Morgan Tarrant and alternate, Shannon O'Donnell. The team was coached by Robert Wedge.

The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and anticipates that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period.

Discussions of the Phillips curve — the relationship between inflation and unemployment — have been at the core of monetary policymaking since the 1960s. The four articles in this Special Issue of Economic Quarterly explore the history of the Phillips curve, the structural estimation of the New Keynesian Phillips curve, and the policy implications of the nominal rigidities underlying the New Keynesian Phillips curve.

"The Widespread Impacts of Mortgage Foreclosures: From Credit Markets to Local Communities," is a forum sponsored by the Federal Reserve Bank of Richmond and Loyola College in Maryland to foster a greater understanding of the foreclosure impact on neighborhoods and communities.

The "Beige Book" report is published eight times per year and consists of anecdotal information on current economic conditions from each Federal Reserve.

The Federal Reserve Bank of Richmond's Charlotte Branch recently honored student winners of the Bank's second annual economic-themed creative expressions contest.

The U.S. Treasury Department and the Federal Reserve Board today announced a restructuring of the government's assistance to AIG in order to stabilize this systemically important company in a manner that best protects the U.S. taxpayer. Specifically, the government's restructuring is designed to enhance the company's capital and liquidity in order to facilitate the orderly completion of the company's global divestiture program.

The Federal Reserve Bank of Richmond has hired Kim Zeuli as assistant vice president of Community Affairs for the Fifth District, effective March 2, 2009. Zeuli will lead a professional staff engaged in economic research and analysis, as well as program and policy development for community development initiatives. She also will counsel Bank leadership on emerging issues in this field.

The Federal Reserve Bank of Richmond's Baltimore Branch today honored student winners of the Bank's second annual economic-themed creative expression contest.

The Federal Reserve Board on Monday launched a new section of its website expanding the information provided about the policy tools the Federal Reserve has employed to address the financial crisis and simplifying access to that information.

A strong, resilient financial system is necessary to facilitate a broad and sustainable economic recovery. The U.S. government stands firmly behind the banking system during this period of financial strain to ensure it will be able to perform its key function of providing credit to households and businesses. The government will ensure that banks have the capital and liquidity they need to provide the credit necessary to restore economic growth. Moreover, we reiterate our determination to preserve the viability of systemically important financial institutions so that they are able to meet their commitments. 

The Federal Reserve Bank of Richmond has hired Ann Battle Macheras as vice president of the regional division of the Research Department, which is based in Richmond.

The Federal Reserve Board on Tuesday announced that it is prepared to undertake a substantial expansion of the Term Asset-Backed Securities Loan Facility (TALF).

The Federal Reserve Bank of Richmond today presented awards to several students who submitted economics-themed entries in the Bank's second annual creative expression contest.

The Federal Reserve Bank of Richmond has promoted Regional Economist Matthew Martin to the role of Senior Vice President and Charlotte Regional Executive.

The Federal Reserve Board on Friday published a policy that was adopted to help avoid preventable foreclosures on certain residential mortgage assets held, owned, or controlled by a Federal Reserve Bank.

The Federal Reserve Bank of Richmond has promoted Tammy H. Cummings to the role of Senior Vice President and Chief Human Resources Officer. She is responsible for Bank's regional human resources operations, policies and initiatives as of Feb.1, 2009.

The Federal Open Market Committee decided today to keep its target range for the federal funds rate at 0 to 1/4 percent. The Committee continues to anticipate that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time.

William C. Dudley was named today to serve as President and Chief Executive Officer of the Federal Reserve Bank of New York.

The "Beige Book" report is published eight times per year and consists of anecdotal information on current economic conditions from each Federal Reserve.

The Fifth Federal Reserve District member banks have elected directors of the Federal Reserve Bank of Richmond for three-year terms beginning January 2009

The cover story of this issue of Region Focus considers what could be done to help the functioning of the housing market.

The Board of Governors of the Federal Reserve System appointed the following Chairman and Deputy Chairman of the Board of Directors for the Federal Reserve Bank of Richmond, effective Jan. 1, 2009:

• Lemuel E. Lewis — President, LocalWeather.com Suffolk, Va. — was appointed chairman of the board of directors for 2009. Mr. Lewis has served as a Class C director since 2005.
• Margaret E. McDermid — Senior Vice President and Chief Information Officer, Dominion Resources Inc., Richmond, Va. — was appointed deputy chairman for 2009.  Ms. McDermid has served as a Class C director since 2007.

In the latest issue of the Federal Reserve Bank of Richmond’s Economic Quarterly, Stephen Williamson of Washington University and a visiting scholar at the Bank evaluates the overall success of the New Keynesian project.

The Federal Open Market Committee decided today to establish a target range for the federal funds rate of 0 to 1/4 percent.

The Federal Reserve Board of Governors and the Federal Reserve Bank of Richmond Board of Directors appointed the following for three-year terms as directors for the Baltimore and Charlotte branches, effective Jan.1, 2009:

Baltimore Board of Directors

• Biana Arentz — President and CEO, Hemingway’s Inc., Stevensville, Md., was reappointed by the Richmond Board of Directors.
• Jenny G. Morgan — Principal, Sterling Partners, Baltimore, Md., was appointed by the Board of Governors.

Charlotte Board of Directors

• Linda L. Dolny — President, PML Associates, Inc., Greenwood, S.C., was reappointed by the Board of Governors.
• James H. Speed, Jr. — President and CEO, North Carolina Mutual Life Insurance Company, Durham, N.C., was reappointed by the Richmond Board of Directors.

The Boards of Directors for the Federal Reserve Bank of Richmond’s Baltimore and Charlotte branches elected the following chairpersons for one-year terms effective Jan. 1, 2009.

The Federal Reserve Board of Governors and the Federal Reserve Bank of Richmond Board of Directors appointed the following for three-year terms as directors for the Baltimore and Charlotte branches, effective Jan.1, 2009:

Baltimore Board of Directors

• Biana Arentz — President and CEO, Hemingway’s Inc., Stevensville, Md., was reappointed by the Richmond Board of Directors.
• Jenny G. Morgan — Principal, Sterling Partners, Baltimore, Md., was appointed by the Board of Governors.

Charlotte Board of Directors

• Linda L. Dolny — President, PML Associates, Inc., Greenwood, S.C., was reappointed by the Board of Governors.
• James H. Speed, Jr. — President and CEO, North Carolina Mutual Life Insurance Company, Durham, N.C., was reappointed by the Richmond Board of Directors.

The "Beige Book" report is published eight times per year and consists of anecdotal information on current economic conditions from each Federal Reserve.

The U.S. government on Sunday entered into an agreement with Citigroup to provide a package of guarantees, liquidity access, and capital.

Virginia Commonwealth University, Richmond, Va., today won the district title in the Fifth Federal Reserve Bank’s annual College Fed Challenge Competition. The winning team included students Ian Bennett, Timothy Fox, Naren Nimmagadda, Justin Epstein and Elizabeth Marshall, and was coached by Professor Carol Lehr.

The mortgage foreclosure picture in Virginia is a mixed bag. Overall, the Commonwealth fairs better than most states in its mortgage delinquency and foreclosure rates. Still, there are some problem areas. As the uncertainty of the nation’s financial system persist, leaders are challenged to develop strategies that minimize the impact on their communities.

The Powell Center for Economic Literacy, the Maryland Council for Economic Education and the Baltimore Branch of the Federal Reserve Bank of Richmond will co-sponsor Midsize Economics and Kidsize Economics workshops. The purpose of the day-long programs is to provide elementary and middle school teachers in Maryland with economics lessons that enhance classroom curriculum and emphasize state content standards.

On November 10, 2008, the Federal Reserve will offer $150 billion in 17-day credit through its Term Auction Facility. This is a forward auction designed to provide term funding over year-end—awarded loans will settle on December 22, 2008.

The Federal Reserve Board and the U.S. Treasury on Monday announced the restructuring of the government's financial support to the American International Group (AIG) in order to keep the company strong and facilitate its ability to complete its restructuring process successfully.

The University of North Carolina at Chapel Hill, N.C., won the preliminary round of the College Fed Challenge Competition held Nov. 5 and 6 at the Federal Reserve Bank of Richmond’s Charlotte Branch.

University of Delaware, Newark, Del., won the preliminary round of the College Fed Challenge Competition held Nov. 5-6 at the Federal Reserve Bank of Richmond’s Baltimore Branch. The team included students William Dowd, Alex Eiermann, Claudia Flores, Scott W. Ohlmacher, Darren Weaver, and was coached by Professor Vera Brusentsev. The team will advance to the Fifth District championship in Richmond on Nov. 18 and compete against the winners from the Richmond and Charlotte branches.

The Federal Reserve Bank of Richmond and George Mason University will present “Widespread Impacts of Mortgage Foreclosures: From Credit Markets to Local Communities.”

Virginia Commonwealth University, Richmond, Va., won the preliminary round of the College Fed Challenge Competition held Oct. 30 at the Federal Reserve Bank of Richmond.

The Federal Open Market Committee decided today to lower its target for the federal funds rate 50 basis points to 1 percent.

Two communities, one in North Carolina and one in West Virginia, were among those studied for the Federal Reserve's report on concentrated poverty. Recently released, The Enduring Challenge of Concentrated Poverty: Case Studies from Communities Across the U.S., looks at the factors that give rise to high-poverty neighborhoods and the challenges they face. The report was the result of a joint project between the Community Affairs functions of the Federal Reserve System and the Brookings Metropolitan Policy program.

The Powell Center for Economic Literacy and the Federal Reserve Bank of Richmond will co-sponsor the 7th biennial Advanced Placement Economics Teachers Conference.

Richmond Fed officials discuss the credit market and the impact of mortgage foreclosures.

Federal Reserve announces the creation of the Money Market Investor Funding Facility (MMIFF)

Federal Reserve announces results of auction of $150 billion in 28-day credit held on October 20, 2008

The Board of Directors of the Federal Reserve Bank of Richmond has appointed the Fifth District representative to the Federal Advisory Council.

Kenneth D. Lewis — Chairman, Chief Executive Officer and President, Bank of America Corp., Charlotte, N.C., was re-appointed to a second term as the Fifth District’s representative on the Federal Advisory Council.

The "Beige Book" report is published eight times per year and consists of anecdotal information on current economic conditions from each Federal Reserve.

Richmond Fed publication explores the state of modern economics.

Federal Reserve and other central banks announce reductions in policy interest rates

Board announces creation of the Commercial Paper Funding Facility (CPFF) to help provide liquidity to term funding markets

Board announces that it will begin to pay interest on depository institutions required and excess reserve balances

The Federal Reserve Bank of Richmond has launched an online Foreclosure Resource Center providing information for homeowners, community groups and local governments to help prevent foreclosures and lessen their negative influence on neighborhoods.

The banking operations of Wachovia Corp., which is headquartered in Charlotte, N.C., are being acquired by Citigroup Inc.

The Federal Reserve Bank of Richmond appointed the following three members to its Small Business and Agriculture Advisory Council.

The meltdown of the subprime mortgage industry and the subsequent credit crunch has dominated news about the health of the nation’s financial system, with reports routinely centered on market activities. But what about the homeowners, neighborhoods and communities where mortgage foreclosures are dramatically changing lives and landscapes?

Income inequality in the United States has received considerable attention in recent policy debates. Richmond Fed economists Kevin A. Bryan and Leonardo Martinez find that income inequality has risen since the 1960s, and that this is explained mainly by increases in inequality at the top of the income distribution. In addition, they document periods characterized by a decline in real income for lower income groups. Bryan and Martinez also explain that welfare inequality may have increased less than income inequality and, in fact, may actually have decreased, due to changing trends in leisure consumption.

The role of private equity firms—organizations that buy companies in order to reshape them and sell them later at a profit — is often misunderstood. Some buyouts and firms make splashy headlines, and credit market turmoil is prompting questions about whether this is the end of an era for private equity. The cover story of the latest Region Focus de-mystifies this industry and explores its importance in keeping the economy competitive.

Bank supervisors gather important information on banks' balance sheet, operations, and management. This is information that is potentially valuable to investors, but neither the supervisors nor the banks are allowed to share it. Should such information be made public? Richmond Fed economist Edward S. Prescott examines whether public dissemination of this knowledge can actually have a negative effect on the ability of supervisors to collect it and therefore limit the effectiveness of supervision.

The Federal Reserve Bank of Richmond today released its 2007 Annual Report, which features the essay "Are We Saving Enough? Households and Retirement."

Severn School, located in Severna Park, Md., won the Fifth District championship round of the 2008 Fed Challenge competition held today at the Federal Reserve Bank of Richmond. This year's winning team included Kathy Little, Matt Quinn, Logan McNamara, Emily Viohl, Will Smith and Richard Welch and was coached by John Bodley.

Millbrook High School of Raleigh, N.C., won the Charlotte Office's preliminary round of the Fifth District's annual high school Fed Challenge competition held on April 16. The winning team included students Bill Armstrong, James Cronin, Andrew Owens, Ellet Shaner, Mark Skvara, and Megan Vice, and was coached by Gene Kikolski. The team will travel to the Federal Reserve Bank of Richmond's headquarters in Richmond, Va., to compete against teams from the Richmond and Baltimore offices on May 1.

The Severn School has won the annual high school Fed Challenge competition sponsored by the Baltimore Office of the Federal Reserve Bank of Richmond. Five high schools were represented in this year's competition, which was held April 15. The winning team included students Kathy Little, Matt Quinn, Logan McNamara, Emily Viohl, Will Smith and Richard Welch. Under the direction of faculty advisor John Bodley, the team will travel to Richmond, Va., to compete May 1 against teams representing the Richmond and Charlotte offices.

Trinity Episcopal School students won the preliminary round of the Federal Reserve's 2008 Fed Challenge competition held at the Richmond Office on April 3. This year's winning team included Alex Eschenroeder, Paige Harland, William Hurd, Victoria Marchetti, Robert Warneford-Thomson, and Logan Mintz as alternate. The team was coached by Robert Patterson and Joseph Marchetti, III.

The Federal Reserve Bank of Richmond's Baltimore Branch has named the winners of its first creative expression contest.

The Federal Reserve Bank of Richmond's Charlotte Office presented awards to the winners of its first creative expression contest.

There was a time when downtowns were the center of economic life in nearly every American city. Those days are gone, but some downtowns are making a comeback. In the cover story of the latest Region Focus, a visit to the bustling, rejuvenated downtown in Greenville, S.C., reveals how city centers are reinventing themselves. The most successful have transformed into niche markets, catering to young professionals and empty nesters.

The Federal Reserve Bank of Richmond today presented awards to the winners of its first creative expression contest.

The Phillips curve has long been used to represent the tradeoff between inflation and economic activity. However, since the mid-1960s, many theorists have agreed that during periods of persistently high inflation, this model does not hold true. Has the U.S. economy become too complex for this economic model? Richmond Fed economist Andreas Hornstein examines a more contemporary model to determine if it can better reflect the changing nature of inflation in the United States.

The Federal Reserve Bank of Richmond announces the following officer promotions effective Jan. 1, 2007.

The boards of directors of the Bank's Baltimore and Charlotte offices elected the following chairmen for 2008.

Prince George's Community College, representing the Baltimore region, placed second in the Federal Reserve's second annual Community College Fed Challenge Competition held earlier today. North Shore Community College of Danvers, Mass., won this year's competition.

Prince George's Community College won the regional Community College Fed Challenge Competition held Nov. 20 at the Baltimore Office of the Federal Reserve Bank of Richmond.

The Federal Reserve Bank of Richmond's member banks have elected the following to three-year terms beginning January 1, 2008.

The Federal Reserve Board of Governors and the Federal Reserve Bank of Richmond Board of Directors appointed the following for three-year terms as directors for the Baltimore and Charlotte offices, effective January 1, 2008.

The Board of Directors of the Federal Reserve Bank of Richmond has appointed the Fifth District representative to the Federal Advisory Council.

Christopher Newport University, Newport News, Va., won the Fifth District title in the Federal Reserve Bank of Richmond’s 2007 College Fed Challenge Competition held earlier today. The winning team included students Mark Bock, Cynthia Gasch, Amber Kazlauskas, Jeff Pfeiffer and Josh Smith, and was coached by Professor Robert Winder. Christopher Newport will compete against winners from the Boston, New York, and Chicago Feds in the national competition, which will be held on Nov. 26 at the Federal Reserve's Board of Governors in Washington, D.C.

Christopher Newport University (CNU), Newport News, Va., won the preliminary round of the College Fed Challenge Competition held Nov. 13 at the Federal Reserve Bank of Richmond. The team included students Mark Bock, Cynthia Gasch, Amber Kazlauskas, Jeff Pfeiffer and Josh Smith, and was coached by Professor Robert Winder. CNU will advance to the Fifth District championships in Richmond on Nov. 16, and compete against the winners from the Baltimore and Charlotte offices.

The University of North Carolina at Chapel Hill, Chapel Hill, N.C., won the Federal Reserve Bank of Richmond Charlotte Office’s preliminary round of the Fifth District competition held Nov. 7.

Mount St. Mary’s University, Emmitsburg, Md., won the Federal Reserve Bank of Richmond Baltimore Office’s preliminary round of the Fifth District College Fed Challenge competition held Nov. 1-2.

The Board of Governors of the Federal Reserve System has named the Chairman and Deputy Chairman of the Board of Directors for the Federal Reserve Bank of Richmond, effective January 1, 2008.

The Federal Reserve Bank of Richmond recognizes several employees who recently earned certification in business continuity and project management, business specialties critical to Fifth District Information Technology operations.

Why do pluralities commonly support policies that run contrary to the advice of economists? For several decades, public choice theory has provided the leading explanation: Voters are rationally ignorant, with special interests largely controlling the democratic process. But now, an economist at George Mason University has turned that model on its head. Voters are getting precisely what they want, says Bryan Caplan, because they are irrational. Caplan's new book has sparked considerable debate over the validity of the traditional public choice model, developed by James Buchanan, Gordon Tullock, and other members of the "Virginia school of political economy."

A slowing economy and rising inflation are typically understood to require opposite policy responses: lowering the short-term interest rate to counter slower real growth while raising the rate to tame inflation. What, then, is the relationship between growth and inflation and how is it related to monetary policy? Jeff Lacker, Richmond Fed President, and John Weinberg, Research Director and Senior Vice President, explore this question by looking at the history of the Phillips curve – the statistical relationship between inflation and unemployment.

As part of the reorganization of the Banking Supervision and Regulation Department, we are pleased to announce that the Richmond Board of Directors has approved the following officer appointments effective September 1, 2007.

The Federal Reserve Board of Governors made the following appointment to the Federal Reserve Bank of Richmond’s Board of Directors, effective immediately.

Proponents of school choice argue that it would help poor-performing schools and the students who must attend them. With vouchers, parents can shop for the best schools, creating competition and improving educational outcomes. Until recently, however, there was little data to test the theory. In the cover story of the latest issue of Region Focus, Doug Campbell looks at a pioneering program in Milwaukee and concludes that while the evidence is mixed, school choice has benefited many of that city's schools and students. Soon, conversations about vouchers may be based on facts instead of opinion.

Congress passed a law last year that allows the Federal Reserve to pay interest on balances held by depository institutions at the central bank. The implications for the demand for reserves, and by extension, monetary policy, may be significant. At present, banks face opportunity costs for holding reserves overnight at the Fed, since their funds might be able to earn interest if deployed elsewhere. During the daytime, banks weigh the tradeoff of holding as few reserves as possible with the costs of obtaining intraday credit from the Fed to meet their payment obligations. By 2011, when the new law takes effect, the incentives for these choices will be different. Since effective monetary policy may depend on predictable demand for reserves, understanding how these new incentives alter banks' decisions about reserve holdings may be useful. Richmond Fed economists Huberto Ennis and John Weinberg build a model of the demand for reserves by banks and study the potential consequences of paying interest on reserves.

We are pleased to announce that the Richmond Board of Directors has approved the following officer appointments.

Today the Federal Reserve Bank of Richmond released its 2006 Annual Report, which features an examination of the relationship between economic growth and inflation, as illustrated by the history of the Phillips curve.

The Richmond Board of Directors has appointed the following officer effective May 14, 2007.

The Federal Reserve Board of Governors made the following appointment to the Charlotte Board of Directors, effective immediately.

The Severn School, located in Severna Park, Md., won the Fifth District championship round of the 2007 Fed Challenge competition held at the Federal Reserve Bank of Richmond on April 24. This year's winning team included Alex Fu, Dylan McNamara, Kathy Little, Matt Quinn, Emily Viohl, Brady Hill (alternate), and was coached by John Bodley.

The Federal Reserve Bank of Richmond announces the following officer promotion effective April 16, 2007.

Millbrook High School of Raleigh, N.C., won the Charlotte Office's preliminary round of the Fifth District's annual high school Fed Challenge competition held March 29.

Trinity Episcopal School students won the preliminary round of the Federal Reserve's 2007 Fed Challenge competition held at the Richmond Office on April 3. This year's winning team included Robert Warneford-Thomson, Victoria Marchetti, Thomas Eschenroeder, William Hurd, Paige Harland and Logan Mintz as alternate. The team was coached by Robert Patterson.

Milton Friedman was arguably the most influential economist of the 20th century. He made groundbreaking scientific contributions that changed the way economists approached some of the most important questions in monetary economics and macroeconomics. He also was an ingenious policy analyst, proposing such measures as school choice and the end of the military draft in favor of a volunteer army. Finally, he had a unique ability to make economics accessible to a general audience, through his Newsweek column and countless television appearances. Richmond Fed economist Robert Hetzel, a former student of Friedman, recounts and analyzes his teacher’s numerous contributions and puts them in historical perspective.

The Federal Reserve Bank of Richmond announces the recent appointment of the following four members to its Small Business and Agriculture Advisory Council.

The Federal Reserve Bank of Richmond today awarded the winners of its sixth annual essay contest during a luncheon held at the Bank.

Severn School of Severna Park, Md., once again has won the Federal Reserve Bank of Richmond's annual high school Fed Challenge competition. This year's competition, which included eight high schools, was held in Baltimore March 5-6. The winning team included students Kathy Little, Alex Fu, Dylan McNamara, Matt Quinn, Emily Viohl and Brady Hill (alternate).

Stock options can align employee and shareholder interests. But they aren't free to issue, despite the way firms have been allowed to report them — until now. In the cover story of the Winter 2007 issue of Region Focus, Doug Campbell explains how economic and accounting principles are finally merging with the adoption of a new financial reporting rule.

The Charlotte Branch of the Federal Reserve Bank of Richmond recognized high school winners of the sixth annual essay contest during an awards luncheon held February 9.

The Federal Reserve Bank of Richmond's Baltimore Branch will honor this year's essay contest winners at an awards luncheon on Feb. 9, 2007. The contest drew 103 entries from students in schools throughout the region, who submitted essays describing their financial goals for the next five years.

The Federal Reserve's Board of Governors has appointed Lemuel E. Lewis as deputy chairman of the board of directors for the Federal Reserve Bank of Richmond, effective immediately. Lewis, director of Landmark Communications, Inc., Norfolk, Va., also was recently reappointed as a Class C director and has served on the Richmond board since 2005. (Only Class C directors are eligible to serve as board chairman and deputy chairman.)

The Federal Reserve Board of Governors made the following reappointment to the Federal Reserve Bank of Richmond's Board of Directors.

The Federal Reserve Board of Governors and the Federal Reserve Bank of Richmond Board of Directors appointed the following for three-year terms as directors for the Baltimore and Charlotte Offices, effective Jan.1, 2007.

The Boards of Directors for the Federal Reserve Bank of Richmond’s Baltimore and Charlotte Offices elected the following chairpersons for one-year terms effective Jan. 1, 2007.