Federal Reserve

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Inflation Did Not Cooperate Last Month

Consumer prices ticked up as Biden administration hopes they ease

(Newser) - Consumer prices in the United States picked up last month, a sign that inflation remains a persistent challenge for the Federal Reserve and for President Biden's reelection campaign, both of which are counting on a steady easing of price pressures this year.
  • Slight increase: Prices rose 0.4% from
...

Jerome Powell Asks Americans to Be Patient

Fed chair indicates central bank is still on track to cut interest rates this year, though

(Newser) - In an appearance on 60 Minutes Sunday, Jerome Powell said the Federal Reserve is still on track to cut interest rates three times in 2024. The Fed chair acknowledged that as the central bank has raised its benchmark rate 11 times since 2022 to fight inflation, Americans looking to buy...

Powell on Rate Cuts: 'Path Forward Is Uncertain'

Federal Reserve holds key rate steady

(Newser) - This story has been updated with Powell's remarks. The Federal Reserve, surprising nobody, left its benchmark interest rate unchanged Wednesday at between 5.25% and 5.5%, its highest in 23 years. This was the fourth Fed meeting in a row that resulted in no change to the key...

New CBO Projections Raise Hopes of a 'Soft Landing'

Agency predicts inflation will nearly reach the Fed's target of 2% next year

(Newser) - The Congressional Budget Office said Friday it expects inflation to nearly hit the Federal Reserve's 2% target rate in 2024, as overall growth is expected to slow and unemployment is expected to rise into 2025, according to updated economic projections for the next two years. The office's Current...

In 'Remarkable Shift,' Fed Predicts 3 Rate Cuts in 2024

For now, it's holding benchmark rate steady

(Newser) - Stocks surged on Wednesday after the Federal Reserve left its key interest rate unchanged for the third meeting in a row—and predicted that there would be three rate cuts next year. The Fed signaled that inflation had come down faster than expected, opening the door to interest rate cuts,...

New Inflation Report Should Keep Fed Happy

Annual rate cools slightly to 3.1%, suggesting Federal Reserve won't raise rates this week

(Newser) - US inflation ticked down again last month, with cheaper gas helping further lighten the weight of consumer price increases in the United States. At the same time, the latest data on consumer inflation showed that prices in some areas—services such as restaurants, used cars, and auto insurance—continued to...

Inflation Report Is Better Than Expected

It cools off in October to 3.2%

(Newser) - The new inflation report is out, and it's likely to make the Federal Reserve pretty happy: It cooled down last month in a sign that the Fed's interest rate hikes are having the desired effect, per the AP .
  • Key numbers: Tuesday's report from the Labor Department showed
...

Big Banks Warn Customers of Deposit Delays

'Manual error' said to cause 'processing issue' at Chase, Bank of America, Wells Fargo, others

(Newser) - Deposits at major banks across the nation were delayed Friday, due to what the Federal Reserve is calling a "processing issue" caused by human error. CNN Business reports that customers at Bank of America, Chase, Wells Fargo, US Bank, and Truist started complaining about the problem Friday morning, with...

Labor Market Cools Off
Labor Market Cools Off

Labor Market Cools Off

Employers add 150K jobs in October, less than expected but still seen as a solid figure

(Newser) - The nation's employers scaled back their hiring in October, adding a modest but still decent 150,000 jobs, a sign that the labor market remains resilient despite economic uncertainties and high interest rates that have made borrowing much costlier for companies and consumers. Last month's job growth, though...

Stocks Rally After Fed Holds Rates Steady
Markets Welcome
Fed Chief's
Latest Remarks
MARKETS

Markets Welcome Fed Chief's Latest Remarks

Powell says other factors are slowing economy, suggesting rate hikes could be over

(Newser) - US stocks rallied after the Federal Reserve indicated it may not need to pump the brakes any harder on Wall Street and the economy.
  • The S&P 500 rose 44.06 points, or 1.1%, to 4,237.86.
  • The Dow Jones Industrial Average rose 221.71 points, or 0.
...

Fed Holds Key Rate at 22-Year High
Fed Holds Key Rate
at 22-Year High

Fed Holds Key Rate at 22-Year High

Central bank says households, businesses are facing tighter credit conditions

(Newser) - The Federal Reserve held its key interest rate steady at a 22-year high on Wednesday—but the central bank left open the possibility of another rise in the months ahead. The Wall Street Journal reports that while inflation has slowed, officials could raise rates in December or January if it...

Prices Continue to Rise More Than the Fed Wants

But in general, inflation continues its slow downward trend

(Newser) - The latest inflation report shows that prices are still rising faster than the Federal Reserve would like, though inflation generally remains on a slow and uneven downward trajectory:
  • Key numbers: Prices in the US increased 0.4% from August to September, down from a faster pace the previous month,
...

Fed Rate Hikes May Finally Be Over
Fed Rate Hikes May
Finally Be Over

Fed Rate Hikes May Finally Be Over

Officials say market moves are starting to tame inflation by themselves

(Newser) - After raising its benchmark interest rate from near zero to more than 5.25% over 19 months, the Federal Reserve may finally be done with its program of rate hikes. The Fed has been raising short-term borrowing costs to tame inflation, but officials say the raises are now affecting long-term...

Federal Reserve Leaves Key Rate Unchanged

But rates will likely go up again before the year is out and stay high in 2024

(Newser) - The Federal Reserve left its key interest rate unchanged Wednesday for the second time in its past three meetings, a sign that it's moderating its fight against inflation as price pressures have eased. But Fed officials also signaled that they expect to raise rates once more this year, the...

Fed Chief: 'We Are Prepared to Raise Rates Further'

Jerome Powell gives a closely watched update

(Newser) - The continued resilience of the US economy could require further interest rate increases, Federal Reserve Chair Jerome Powell said Friday in a closely watched speech that also highlighted the uncertain nature of the economic outlook. Powell noted that the economy has been growing faster than expected and that consumers have...

Yearlong Streak of Inflation Decline Has Come to an End

Inflation in US ticked up by 0.2% from June, with consumer prices up 3.2% from a year earlier

(Newser) - Inflation in the United States rose in July after 12 straight months of declines, boosted by costlier housing. But excluding volatile food and energy prices, so-called core inflation rose just 0.2% from June, matching the smallest monthly increase in nearly two years, per the AP . The inflation figure the...

Fed Chair Says US May Have Dodged Recession

Congressional Budget Office is also predicting 'soft landing'

(Newser) - The Federal Reserve believes its policies may have helped the US economy avoid recession and achieve a "soft landing," a possibility analysts once saw as remote. In remarks after the latest interest rate rise was announced Wednesday, Fed Chair Jerome Powell said the central bank is no longer...

Fed Hikes Interest Rates to a 22-Year High

Quarter-point increase is 11th in 17 months

(Newser) - The expectation was that the Federal Reserve would lift its key interest rate for the 11th time in 17 months, and that's exactly what came to pass on Wednesday. The quarter-point hike brings the the Fed's short-term rate to roughly 5.3%, the highest level since 2001. As...

Finally, the Curves Flip on Paychecks, Inflation

After 2 years, wages hikes are finally rising faster than inflation

(Newser) - Generally speaking, Americans have been getting pay raises over the last two years—it just hasn't felt like it because prices were rising even more. Finally, however, wage increases have begun to outpace inflation, reports the Wall Street Journal . Average hourly wages, after being adjusted for inflation, rose 1....

Could Taylor Swift Keep Us Out of a Recession?

Federal Reserve gives nod to her Eras Tour, 'influx' of fans for their economic impact

(Newser) - Taylor Swift has been impressing fans and critics alike during her current Eras Tour, and ticket sales show no signs of slowing. But it's more than just her music that's been having an impact—the Federal Reserve says the singer has had a marked effect on the economy,...

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