The Fed thinks inflation is vanquished
1 month, 2 weeks ago

The Fed thinks inflation is vanquished

Live Mint  

Federal Reserve Chairman Jerome Powell is sticking with his view that inflation is all but vanquished. Mr. Powell delivered a surprisingly large, 50-basis point cut in September despite persistent above-target inflation and a strong labor market. Economic models tell Mr. Powell and colleagues that inflation will resume its downward drift eventually, and that if they don’t cut rates in the meantime the labor market will soften more than they intend. Mr. Powell is risking political trouble for himself if persistent inflation above the Fed’s target, or worse, an inflation rebound, makes that economic goal more difficult to achieve. But Mr. Powell also doesn’t want to have to raise rates early in Mr. Trump’s second term to prevent an inflationary bounce back.

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History of this topic

Fed lowers rates but sees fewer cuts ahead
Trending News
4 days, 1 hour ago

Fed lowers rates but sees fewer cuts ahead

China Daily  

WASHINGTON — The US Federal Reserve on Wednesday slashed interest rates by 25 basis points, the third consecutive rate cut in this easing cycle, while signaling a slower-than-expected pace of easing next year. US stocks plunged following the rate cuts, with the Dow Jones Industrial Average falling 2.58 percent, the S&P 500 sinking 2.95 percent and the Nasdaq dropping 3.56 …

US Federal Reserve lowers interest rates, signals slower cuts for 2025
Trending News
5 days, 1 hour ago

US Federal Reserve lowers interest rates, signals slower cuts for 2025

India TV News  

The Federal Reserve cut its benchmark interest rate by a quarter for the third consecutive time. Future outlook: Moderate reductions expected by 2025 Another quarterly outlook indicated only two rate cuts in 2025, with officials predicting government rates to reach 3.75 per cent-4 per cent by the end of that year. Fed Governor Michelle Bowman warned that inflation would remain …

Feds drop interest rates by another quarter-point easing burden for borrowers
Trending News
5 days, 3 hours ago

Feds drop interest rates by another quarter-point easing burden for borrowers

The Independent  

The latest headlines from our reporters across the US sent straight to your inbox each weekday Your briefing on the latest headlines from across the US Your briefing on the latest headlines from across the US SIGN UP I would like to be emailed about offers, events and updates from The Independent. This year's Fed rate reductions have marked a …

US Fed cuts interest rates but cautions for year ahead
Trending News
6 days, 1 hour ago

US Fed cuts interest rates but cautions for year ahead

Al Jazeera  

Slower progress on inflation translates into a slower pace of rate cuts, especially as economic growth is brisk. “Economic activity has continued to expand at a solid pace” with an unemployment rate that “remains low” and inflation that “remains somewhat elevated”, the central bank’s rate-setting Federal Open Market Committee said in its latest policy statement on Wednesday. That is half …

Fed makes third rate cut this year, suggests fewer in 2025
6 days, 1 hour ago

Fed makes third rate cut this year, suggests fewer in 2025

Salon  

The Federal Reserve on Wednesday committed to a final interest rate cut this year, as widely expected by economists and investors, but suggested fewer cuts next year. “The slower pace of cuts for next year really reflects both the higher inflation readings we’ve had this year and the expectation inflation will be higher.” Going into the December meeting, market expectations …

Will the Fed keep cutting in 2025?
6 days, 21 hours ago

Will the Fed keep cutting in 2025?

Live Mint  

Investors see an interest-rate cut by the Federal Reserve this week as all but certain. Approaching neutral This week’s meeting is likely to deepen debates on two issues that could define where rates go over the next year: the location of the “neutral" rate of interest and the potential for policy changes by President-elect Donald Trump. “It looks like you’ve …

The Federal Reserve takes on Trump—and stubborn inflation
1 week ago

The Federal Reserve takes on Trump—and stubborn inflation

Live Mint  

A lot is riding on the numbers after the decimal point. In such a scenario, Mr Trump would presumably be satisfied enough with the central bank that he would feel little compulsion to snipe at Jerome Powell, the Fed’s chairman, or, worse, to start a legal battle by trying to oust Mr Powell before his term expires in May 2026. …

Federal Reserve is likely to slow its rate cuts with inflation pressures still elevated
1 week ago

Federal Reserve is likely to slow its rate cuts with inflation pressures still elevated

Associated Press  

WASHINGTON — Americans hoping for lower borrowing costs for homes, credit cards and cars may be disappointed after this week’s Federal Reserve meeting. The Fed’s policymakers are likely to signal fewer interest rate cuts next year than were previously expected. Instead, inflation has become stuck at a higher level, yet the Fed after Wednesday’s meeting will likely have lowered its …

US Fed to play ‘cut-and-pause’ for meeting dual mandate of growth & inflation; Fewer rate cuts eyed in 2025: Experts
1 week, 2 days ago

US Fed to play ‘cut-and-pause’ for meeting dual mandate of growth & inflation; Fewer rate cuts eyed in 2025: Experts

Live Mint  

The US Federal Reserve will begin its deliberations for the latest monetary policy decisions on Tuesday, December 17, and will announce its new benchmark interest rate decision on December 18. The US central bank will conduct its two-day Federal Open Market Committee meeting amid Wall Street bets that will likely stay on course towards delivering another rate cut even after …

Sticky US inflation and Trump tariffs cast doubt on Fed’s rate cut path, say experts
1 week, 4 days ago

Sticky US inflation and Trump tariffs cast doubt on Fed’s rate cut path, say experts

Live Mint  

Although US CPI inflation recorded its sharpest increase in seven months, it aligned with forecasts and did not disrupt expectations of a 25 bps rate cut by the US Federal Reserve next week. However, the November inflation data highlighted that the Fed still faces significant challenges in bringing inflation below its 2 per cent target, leaving the outlook for future …

Why Trump and the Federal Reserve could clash in the coming years
2 weeks, 4 days ago

Why Trump and the Federal Reserve could clash in the coming years

Associated Press  

WASHINGTON — President-elect Donald Trump campaigned on the promise that his policies would reduce high borrowing costs and lighten the financial burden on American households. And even if Powell reduces the Fed’s benchmark rate, Trump’s own policies could keep other borrowing costs — like mortgage rates — elevated. The Fed would likely respond by slowing or stopping its rate cuts, …

Powell says a strong US economy is letting the Fed be ‘cautious’ about cutting interest rates
2 weeks, 6 days ago

Powell says a strong US economy is letting the Fed be ‘cautious’ about cutting interest rates

CNN  

Washington CNN — Federal Reserve Chair Jerome Powell said Wednesday that the US economy’s strength means the central bank can show some restraint with cutting interest rates. “The US economy is in very good shape, and there’s no reason for that not to continue,” Powell said at an event hosted by The New York Times. “At present I lean toward …

U.S. Fed officials see inflation fight as broadly on track
2 weeks, 6 days ago

U.S. Fed officials see inflation fight as broadly on track

Raw Story  

The U.S. appears on track to hit its long-term target of two percent inflation despite a recent uptick, three Federal Reserve officials said Monday, with one indicating tentative support for another rate cut this month. "At present I lean toward supporting a cut to the policy rate at our December meeting," he said, noting that many people still expected inflation …

A top Fed official leans toward December rate cut but says it depends on economic data
3 weeks ago

A top Fed official leans toward December rate cut but says it depends on economic data

Associated Press  

WASHINGTON — A top Federal Reserve official said Monday that he is leaning toward supporting an interest rate cut when the Fed meets in two weeks but that evidence of persistent inflation before then could cause him to change that view. But he noted that there’s a risk that inflation “may be getting stuck above” the Fed’s 2% target, which …

Fed’s Waller says inclined at this point to cut rates in December
Trending News
3 weeks ago

Fed’s Waller says inclined at this point to cut rates in December

Live Mint  

By Howard Schneider WASHINGTON, Dec 2 - Federal Reserve Governor Christopher Waller said on Monday he was inclined to cut the benchmark interest rate at the Dec. 17-18 meeting as monetary policy remained restrictive enough to keep putting downward pressure on inflation, while the labor market was roughly in balance, something the Fed wants to maintain. "Policy is still restrictive …

Federal Reserve officials signal cautious path for rate cuts amid still-high inflation
3 weeks, 6 days ago

Federal Reserve officials signal cautious path for rate cuts amid still-high inflation

Associated Press  

WASHINGTON — With inflation still elevated, Federal Reserve officials expressed caution at their last meeting about cutting interest rates too quickly, adding to uncertainty about their next moves. Even if inflation continued declining to the Fed’s 2% target, officials said, “it would likely be appropriate to move gradually” in lowering rates, according to minutes of the November 6-7 meeting. Yet …

Boston Fed President says December rate cut isn’t a ‘done deal’
1 month, 1 week ago

Boston Fed President says December rate cut isn’t a ‘done deal’

Live Mint  

A Federal Reserve official said the central bank could eventually need to slow down the pace at which it is lowering rates and said it was too soon to say whether that should happen at the central bank’s meeting next month. Another rate cut in December is “certainly on the table, but it’s not a done deal," said Boston Fed …

Powell says solid economy allows Fed to consider rate cuts ‘carefully’
1 month, 1 week ago

Powell says solid economy allows Fed to consider rate cuts ‘carefully’

Live Mint  

Federal Reserve Chair Jerome Powell said recent signs of economic health would allow the central bank to take its time in deciding how quickly to continue reducing interest rates. Before Powell’s remarks, investors in interest-rate futures markets expected the central bank to lower rates by a quarter point at that meeting and then to slow down the pace of cuts …

US Fed Chair Jerome Powell says no need to rush rate cuts amid strong economy
Trending News
1 month, 1 week ago

US Fed Chair Jerome Powell says no need to rush rate cuts amid strong economy

Live Mint  

The US Federal Reserve does not need to rush to cut interest rates due to the ongoing economic growth, a solid job market, and inflation that remains above its 2% target, said Fed Chair Jerome Powell. According to Powell, the Fed policymakers believe inflation is progressing toward a “sustainable path to 2%” that will enable the US central bank to …

Powell says Fed will likely cut rates cautiously given persistent inflation pressures
1 month, 1 week ago

Powell says Fed will likely cut rates cautiously given persistent inflation pressures

Associated Press  

WASHINGTON — Chair Jerome Powell said Thursday that the Federal Reserve will likely cut its key interest rate slowly and deliberately in the coming months, in part because inflation has shown signs of persistence and the Fed’s officials want to see where it heads next. In his remarks Thursday, Powell suggested that inflation may remain stuck somewhat above the Fed’s …

US Fed rate cut: First inflation uptick in 7 months does little for Powell-led FOMC’s December plans; here’s why
1 month, 1 week ago

US Fed rate cut: First inflation uptick in 7 months does little for Powell-led FOMC’s December plans; here’s why

Live Mint  

The US Federal Reserve will likely stay on course towards delivering another interest rate cut in its December policy meeting even after the latest inflation print revealed that consumer prices rose for the first time in seven months. Wall Street analysts say that October's inflation data "will change little for the US Fed'' when the Federal Open Market Committee will …

Economist reveals how Trump could make the economy worse
1 month, 1 week ago

Economist reveals how Trump could make the economy worse

Daily Mail  

Former Treasury Secretary Larry Summers addresses the New York Economic Club, expressing serious concerns about the Federal Reserve 's approach to inflation. Summers, who has been vocal about inflation risks, warned that the Federal Reserve, under Jerome Powell, is not acting decisively enough to address "overheating risks" in the economy. Summers speculated that a second Trump administration could exacerbate inflation …

Liberal economist Larry Summers issues frightening warning about inflation to Americans following Trump's election
1 month, 1 week ago

Liberal economist Larry Summers issues frightening warning about inflation to Americans following Trump's election

Daily Mail  

Liberal economist Larry Summers warned that inflation is still not fixed and that a Trump administration could make things even worse. Liberal economist Larry Summers warned that inflation is still not fixed and that a Trump administration could make things even worse Summers is worried that President-elect Donald Trump may only make 'Bidenflation' worse The central bank made a 25 …

Fed’s Powell: Rate cuts are still underway, but there’s no hurry
1 month, 1 week ago

Fed’s Powell: Rate cuts are still underway, but there’s no hurry

CNN  

Washington CNN — Federal Reserve Chair Jerome Powell said Thursday that interest rates are still expected to decline further, but suggested they might not be that much lower over the next few months. Powell said in a moderated discussion that Fed economists may begin to assess Trump’s plans and how they could affect the economy more seriously as early as …

Richard Clarida on What Comes Next for the Federal Reserve
1 month, 1 week ago

Richard Clarida on What Comes Next for the Federal Reserve

Bloomberg  

Last week the Federal Reserve opted to cut interest rates by 25 basis points, which was what the market expected it to do. Inflation has been softening this year, but there’s a sense that this trend could turn — especially with the Trump administration coming in after the new year. All of this raises the question of what the Fed …

US Fed rate cut outlook: Can Donald Trump’s return shape the US central bank’s interest rate path?
1 month, 2 weeks ago

US Fed rate cut outlook: Can Donald Trump’s return shape the US central bank’s interest rate path?

Live Mint  

Although the US Federal Reserve refrained from surprising markets and trimmed the benchmark interest rate by 25 bps to 4.50 - 4.75 per cent on November 7, markets seemed disappointed by Chair Jerome Powell's tone, which suggested uncertainty about the future path of interest rates. Experts believe Trump's policies about aggressive tariffs and extending tax cuts could drive up inflation …

Trump enters just as the Fed is shifting its focus
1 month, 2 weeks ago

Trump enters just as the Fed is shifting its focus

Live Mint  

With its second consecutive interest-rate cut this year, the Federal Reserve is attempting to boost the odds of a soft landing. Alternatively, any resurgence in inflation could force the Fed to stop cutting rates, raising the odds that the economy faces a hard landing later in Trump’s term. Due in part to the Fed cutting rates with a solid economy, …

Federal Reserve Chair Jerome Powell says won't resign if pressured by Trump after interest rate cuts
1 month, 2 weeks ago

Federal Reserve Chair Jerome Powell says won't resign if pressured by Trump after interest rate cuts

Firstpost  

When questioned about Trump’s apprehension and whether he would step down if Trump asked him to leave the role, Powell delivered a blunt ’no' US Federal Reserve Chair Jerome Powell said that he would not resign if he faced any pressure from the new President-elect Donald Trump after the central bank lowered interest rates by a quarter-point on Thursday afternoon. …

US Yields Fall as Powell Gives ‘No Skip Signs’: Markets Wrap
1 month, 2 weeks ago

US Yields Fall as Powell Gives ‘No Skip Signs’: Markets Wrap

Live Mint  

-- Stocks hit fresh all-time highs, Treasury yields fell and the dollar dropped the most since August, with traders keeping a close eye on Jerome Powell’s remarks after the Federal Reserve cut rates by a quarter percentage point to support the economy. They tweaked language to note “labor market conditions have generally eased,” and repeated “the unemployment rate has moved …

Fed Cuts Rates; Powell Says Wouldn’t Resign If Asked By Trump
1 month, 2 weeks ago

Fed Cuts Rates; Powell Says Wouldn’t Resign If Asked By Trump

Live Mint  

Federal Reserve Chair Jerome Powell said he would not resign from his role if asked to do so by a re-elected Donald Trump, following the Fed’s decision Thursday to lower interest rates by a quarter percentage point. When asked at a post-meeting press conference whether he would step down if requested by Trump, Powell replied forcefully, “No.” He also said …

US Federal Reserve cuts rate by 0.25% after first post-election meeting, notes easing inflation
Trending News
1 month, 2 weeks ago

US Federal Reserve cuts rate by 0.25% after first post-election meeting, notes easing inflation

Firstpost  

The interest rate in the US is now in the range of 4.5-4.75 per cent. The US Federal Reserve on Thursday cut the benchmark lending rates in the country by 0.25 per cent. Inflation has made progress toward the Committee’s 2 per cent objective but remains somewhat elevated,” the Federal Open Market Committee, which is responsible for changes to the …

Federal Reserve cuts its key interest rate by a quarter-point amid postelection uncertainty
1 month, 2 weeks ago

Federal Reserve cuts its key interest rate by a quarter-point amid postelection uncertainty

Associated Press  

WASHINGTON — The Federal Reserve cut its key interest rate Thursday by a quarter-point in response to the steady decline in the once-high inflation that had angered Americans and helped drive Donald Trump’s presidential election victory this week. When its latest policy meeting ended Thursday, the Fed issued a statement noting that the “unemployment rate has moved up but remains …

Fed cuts interest rates again, but Trump’s victory makes future path a lot more murky
Trending News
1 month, 2 weeks ago

Fed cuts interest rates again, but Trump’s victory makes future path a lot more murky

LA Times  

The Federal Reserve cut interest rates for a second straight time on Thursday in an effort to keep the economy sailing along by easing the high borrowing costs it engineered to fight inflation. Economists see risks on two fronts: If Trump follows through on his campaign promises to lower taxes and levy across-the-board tariffs, he could reignite inflation and force …

US Fed cuts interest rates by quarter of a percentage point
Top News
1 month, 2 weeks ago

US Fed cuts interest rates by quarter of a percentage point

Al Jazeera  

The Fed will have to navigate a changing economic landscape with the election of Donald Trump as the next US president. The United States Federal Reserve has cut interest rates by a quarter of a percentage point as policymakers took note of a job market that has “generally eased” while inflation continues to move towards the central bank’s 2 percent …

The US Federal Reserve must do two things right now
1 month, 2 weeks ago

The US Federal Reserve must do two things right now

Live Mint  

As US Federal Reserve officials deliberate monetary policy, they may wish to recall what happened when policymakers in past decades became overconfident in using demand management measures to ‘fine tune’ the economy. Its obsession with data dependency has seen it over-react to noisy historical data, lacking the more strategic forward-looking approach needed when using policy tools that operate with ‘long …

Jerome Powell-led FOMC to meet today: US election results, inflation to GDP— 5 key indicators to watch
1 month, 2 weeks ago

Jerome Powell-led FOMC to meet today: US election results, inflation to GDP— 5 key indicators to watch

Live Mint  

The US Federal Reserve will begin its deliberations for the latest monetary policy decisions today, November 6, and will announce its new benchmark interest rate decision on Thursday, November 7. In September's policy meeting, US Fed policymakers said they see the interest rate falling by another 50 bps by the end of this year, another full percentage point in 2025, …

Trump seizes on Fed rate cut to open new line of attack on economy
3 months ago

Trump seizes on Fed rate cut to open new line of attack on economy

Politico  

The Fed’s move to lower borrowing costs offers Trump a fresh line of attack against the Biden-Harris administration’s economic record — and a new chapter in his often contentious relationship with the Fed chief — that could resonate even as inflation fades. “The decision by the Fed shows the economy and the job market are in very bad shape,” Brian …

Ahead of elections, US Federal Reserve shifts interest rates dramatically to deal with worst inflation
3 months ago

Ahead of elections, US Federal Reserve shifts interest rates dramatically to deal with worst inflation

India TV News  

The Federal Reserve cut interest rates by half of a percentage point on Wednesday, kicking off what is expected to be a steady easing of monetary policy with a larger-than-usual reduction in borrowing costs that followed growing unease about the health of the job market. "The committee has gained greater confidence that inflation is moving sustainably toward 2%, and judges …

‘You May Not Be Crazy': Why The Election Matters To The Fed.
3 months, 1 week ago

‘You May Not Be Crazy': Why The Election Matters To The Fed.

Politico  

Fed Chair Jerome Powell is adamant that the central bank’s interest rate decisions will never be based on politics, only on the economic outlook. And while Powell has made clear that the central bank doesn’t make policy based on politicians’ campaign promises, the outcome of an election is another data point — more lasting than this month’s jobs numbers or …

Republicans break with Trump, back Fed ahead of rate cut
3 months, 1 week ago

Republicans break with Trump, back Fed ahead of rate cut

Politico  

“It is time for a rate cut,” said Sen. John Kennedy of Louisiana. “This economy — particularly the labor market — is softening very, very, very quickly.” GOP lawmakers’ support for the cut signals that they’re willing to give the Fed room to drive decision-making on monetary policy, despite Trump’s stated desire to have more say over it. “You’ve got …

Fed rate cuts are coming, but investors disagree on the path forward
3 months, 3 weeks ago

Fed rate cuts are coming, but investors disagree on the path forward

Live Mint  

Markets might be running ahead of themselves by pricing aggressive Federal Reserve interest-rate cuts this year. According to CME Group data, investors are mostly pricing a 25-basis point cut in each of the next two Fed meetings in September and November, followed by a larger trim in December, which some analysts and investment managers say would be too aggressive as …

Takeaways from Fed Chair Powell’s speech at Jackson Hole
4 months ago

Takeaways from Fed Chair Powell’s speech at Jackson Hole

Associated Press  

WASHINGTON — Federal Reserve Chair Jerome Powell all but proclaimed victory in the fight against inflation and signaled that interest rate cuts are coming in a much-anticipated speech Friday in Jackson Hole, Wyoming. Inflation has come down steadily, and investors now expect the Fed to start cutting rates at its next meeting in September — an expectation that essentially got …

Federal Reserve Chief Powell: 'The Time Has Come' To Start Cutting Interest Rates
4 months ago

Federal Reserve Chief Powell: 'The Time Has Come' To Start Cutting Interest Rates

Huff Post  

LOADING ERROR LOADING JACKSON HOLE, Wyoming — With inflation nearly defeated and the job market cooling, the Federal Reserve is prepared to start cutting its key interest rate from its current 23-year high, Chair Jerome Powell said Friday. “The time has come for policy to adjust,” Powell said in his keynote speech at the Fed’s annual economic conference in Jackson …

'The time has come' to lower interest rates: Fed Chair Jerome Powell
4 months ago

'The time has come' to lower interest rates: Fed Chair Jerome Powell

NPR  

'The time has come' to lower interest rates: Fed Chair Jerome Powell toggle caption Drew Angerer/Getty Images North America Federal Reserve chairman Jerome Powell says he's increasingly confident that inflation will soon be tamed, setting the stage for the central bank to start cutting interest rates next month. Speaking at one of the most closely-watched annual gatherings of global central …

Trump threatened to fire 'this idiot' Fed chairman unless he did his bidding: book
4 months ago

Trump threatened to fire 'this idiot' Fed chairman unless he did his bidding: book

Raw Story  

A new book written by former Commerce Secretary Wilbur Ross claims that former President Donald Trump was hellbent on axing Federal Reserve Chairman Jerome Powell unless he cut interest rates. As Forbes reports, Ross writes that Trump summoned him to a meeting where he demanded that Ross set Powell straight about his policy of raising interest rates, which Trump believed …

Inflation likely stayed low last month as Federal Reserve edges closer to cutting rates
4 months, 1 week ago

Inflation likely stayed low last month as Federal Reserve edges closer to cutting rates

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. For months, cooling inflation has …

U.S. inflation slowed again in July, clearing the way for the Fed to begin cutting rates
4 months, 1 week ago

U.S. inflation slowed again in July, clearing the way for the Fed to begin cutting rates

LA Times  

A sale sign is displayed on a store clothes rack. Wednesday’s report from the Labor Department showed that consumer prices rose just 0.2% from June to July after dropping slightly the previous month for the first time in four years. At a news conference last month, Powell said that cooler inflation data this spring had strengthened the Fed’s confidence that …

How the Federal Reserve’s foot dragging triggered a global market landslide
4 months, 3 weeks ago

How the Federal Reserve’s foot dragging triggered a global market landslide

The Telegraph  

The shock centred around its barometer of jobs that suggested the current environment was the worst since the midst of the pandemic. “The plunge in the employment index will add to concerns that the Fed has left it too late to begin loosening policy,” said Thomas Ryan at Capital Economics. “As the labour market has cooled and inflation has declined, …

US Fed paves the way for pre-election rate cut
4 months, 3 weeks ago

US Fed paves the way for pre-election rate cut

The Telegraph  

The chairman of the US Federal Reserve has paved the way for a pre-election rate cut in a sign that the era of high borrowing costs around the world is coming to an end. Speaking after the Fed held borrowing costs in a range of between 5.25pc and 5.5pc for the eighth time, Mr Powell said: “The broad sense of …

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