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Federal Reserve governor Michelle Bowman recently became the first central bank governor to dissent against a policy decision favored by the Fed chair since 2005. While the Fed voted to cut rates by a half point, Bowman supported a smaller rate cut, expressing concerns that a larger cut could be seen as a premature victory over inflation. Bowman believes that a slower pace of rate cuts would be more appropriate to avoid unnecessarily stoking demand. This dissent is significant as it is the first time in 19 years that a governor has cast a dissenting vote. [Extracted from the article]

The Federal Reserve is preparing to lower interest rates at its upcoming meeting in order to maintain a strong job market. The decision on whether to cut rates by a larger half percentage point or a traditional quarter point will depend on Chair Jerome Powell's leadership and the balance of risks. Economic data shows that inflation has declined, but the labor market has cooled. Some argue for a larger cut to protect against potential risks, while others advocate for a smaller cut to maintain a balanced economy. The decision is expected to be a close call, and Powell may face dissent from policymakers. [Extracted from the article]

Donald Trump's desire to have more control over the Federal Reserve's interest rate decisions has raised concerns about the central bank's independence. Economists argue that central bank independence is important to prevent politicians from pushing for lower interest rates, which can lead to inflation. Trump believes he is more qualified to make monetary policy decisions due to his business experience. While Trump's views often reflect political considerations, some advisers have outlined options for blunting the Fed's independence. However, others, including Trump's former trade ambassador, caution against eroding the Fed's independence. [Extracted from the article]

The recent lackluster July hiring report has shifted the focus of economic policymakers in Washington from inflation to the labor market. The Federal Reserve has been working to ensure a soft landing for inflation, but now they are concerned about whether the economy is settling at full employment or if it is heading towards a downturn. A broader economic slowdown could impact the presidential race between former President Donald Trump and Vice President Kamala Harris. The Fed is considering a rate cut next month to shore up the slowing economy, but some economists believe they need to act faster to prevent a downturn. The current labor market is not weak, with more job openings than unemployed workers and subdued layoffs. [Extracted from the article]

The Federal Reserve's potential interest-rate cut in September is causing concern due to its timing during the presidential election. Delivering a rate cut before the election could upset Republicans and former President Donald Trump, while withholding a reduction could upset Democrats and undermine the economy. The Fed is expected to set expectations and explain the reasoning behind any rate reductions at its next meeting in mid-September. The decision to cut rates could have political consequences and affect consumer sentiment and borrowing costs. The Fed has historically made policy changes around elections, and some argue that a rate cut now would prevent unnecessary weakness in the economy. [Extracted from the article]

Byline: Nick Timiraos Jul 11, 2019 (The Australian - ABIX via COMTEX) -- Wall Street and the yield on 10-year US government bonds rose on 11 July after Federal Reserve [...]

Byline: Nick Timiraos Mar 11, 2019 (The Australian - ABIX via COMTEX) -- Federal Reserve chairman Jerome Powell says he does not believe that US interest rates need to be [...]

Byline: Nick Timiraos Jan 31, 2019 (The Australian - ABIX via COMTEX) -- Wall Street rallied and US bond yields fell after the Federal Reserve left the cash rate on [...]

Byline: Nick TimiraosDec 19, 2018 (The Australian - ABIX via COMTEX) -- The US Federal Reserve has increased the federal funds rate to a range of 2.25 per cent to [...]

Byline: Amrith Ramkumar and Nick TimiraosNov 29, 2018 (The Australian - ABIX via COMTEX) -- US equities have rallied in response to comments by Federal Reserve chairman Jerome Powell, who [...]

Federal Reserve officials have decided to hold interest rates at their current level for a longer period of time than previously anticipated due to disappointing inflation readings. While officials still believe that interest rates are high enough to slow the economy and inflation, they are less certain about the extent to which rates will restrain activity and price pressures. Some officials have mentioned a willingness to tighten policy further if inflation risks materialize. The Fed has held rates steady since July 2023, but recent data suggests that price pressures have not reaccelerated, reducing the likelihood of rate hikes in the near future. [Extracted from the article]

Federal Reserve Chair Jerome Powell has stated that the central bank will maintain its current high interest rates until there is evidence of a sustained decrease in inflation. Powell expressed less confidence in the outlook for inflation, making it uncertain when or if interest rates will be lowered. The Fed had initially anticipated lowering rates in 2024, but disappointing inflation reports have caused them to reassess their plans. Powell emphasized the need for patience and allowing restrictive policy to take effect. While most officials do not anticipate further rate increases, Powell did not rule out the possibility. The Fed's cautious approach to rate cuts differs from other major central banks, such as the European Central Bank, which is considering lowering rates. [Extracted from the article]

The Federal Reserve's plans to cut interest rates are being hindered by stubbornly high rents, which have prevented inflation from slowing down. Housing costs play a significant role in inflation, accounting for one-third of the consumer-price index. The slowdown in housing inflation has been anticipated for over a year, but it has not materialized due to changing dynamics in the housing market. Some analysts worry that if the slowdown does not occur, it would weaken the case for lower interest rates. However, others believe that the slowdown in housing costs is just delayed and will eventually happen. [Extracted from the article]

Federal Reserve Chair Jerome Powell has expressed optimism about the economy and maintained that interest rates are restrictive, but investors are increasingly focused on inflation data. Some analysts believe that the inflation numbers will ultimately determine the Fed's actions. While the Fed's policy statement still suggests a bias towards cutting interest rates, if inflation continues to rise, the Fed may need to reconsider this guidance. Powell has left open the possibility of rate increases, stating that the data will determine the peak rate. There are differing opinions within the central bank, with some officials concerned about leaving rates high for too long, while others believe that the economy is strong and inflation could exceed the target. Powell cited reasons to believe that high interest rates are cooling demand, but others worry that interest-sensitive sectors of the economy may sustain a reacceleration of growth that keeps inflation from falling. If inflation remains around 3%, officials may face difficult decisions about policy. Overall, the Fed's view that a rate cut is more likely than an increase is reasonable for now, but there is a possibility that the next move could be towards higher rates. [Extracted from the article]

The Federal Reserve is expected to signal that it is willing to keep interest rates high for a longer period of time due to lingering inflation. The Fed's benchmark federal-funds rate will remain steady at around 5.3% at their upcoming policy meeting. The focus of the meeting will be on how Fed Chair Jerome Powell characterizes the interest-rate outlook, as recent data has raised uncertainty about the timing and necessity of rate cuts. While most Wall Street strategists still believe one or two rate cuts are possible later this year, the prospect of such cuts without clear evidence of economic weakness remains uncertain. Powell has indicated that if inflation continues to run stronger, the Fed will keep rates at their current level for longer. The reduction in the Fed's balance sheet is also expected to be discussed at the meeting. [Extracted from the article]

The Federal Reserve's plan to cut interest rates this year may be in jeopardy due to higher-than-expected inflation. The central bank had hoped to lower rates to stimulate economic growth, but solid hiring and the possibility of inflation settling closer to 3% rather than the Fed's 2% target has raised concerns about the need for rate cuts. The latest data suggests that the Fed may have to wait for better inflation data or evidence of a significant economic slowdown before making any rate cuts. Some economists believe that inflation may be getting stuck at a higher level, which could eliminate the case for rate cuts altogether. [Extracted from the article]

Federal Reserve Chair Jerome Powell stated that despite stronger-than-expected economic activity, the central bank still expects to cut interest rates this year. Powell cited signs that labor-market conditions are less tight, easing concerns of rising paychecks and prices. He also mentioned that recent inflation figures have not changed the Fed's stance that price growth will continue to slow down. The Fed raised rates over the past two years to address high inflation but has held the benchmark rate steady since July. [Extracted from the article]

The overall personal-consumption expenditures (PCE) price index in the United States rose 2.5% over the 12 months through February, in line with economists' forecasts. Core prices, excluding food and energy prices, also rose 2.8%, as expected. Federal Reserve Chair Jerome Powell stated that officials need to see more inflation data before being confident in price growth returning to the central bank's 2% goal. The Fed has projected three interest-rate cuts this year, but the timing of these cuts remains uncertain. [Extracted from the article]

The Federal Reserve is facing a dilemma as investors question whether it will delay interest rate cuts due to recent inflation readings. However, the Fed is more concerned about the risk of inadvertently causing a recession if it waits too long to cut rates. While officials won't prioritize recession risk in this week's meeting, it is likely to influence their decision-making throughout the year. The focus of the meeting will be on the Fed's interest rate and economic projections, with investors eager to know if officials still anticipate three rate cuts or just two. The central bank is also considering the possibility of waiting longer to cut rates if inflation takes longer to reach 2%. The article highlights a shift within the Fed, with officials less worried about inflation remaining above 3% and more concerned about the slow decline of services inflation and the rebound of goods prices. The debate within the central bank centers around whether to cut rates by midyear or wait for more evidence of a slowdown. Some officials are ready to cut rates as soon as the inflation data allows, while others believe there is no need to adjust policy given above-target inflation, strong demand, and low unemployment. Ultimately, the decision will depend on the problem officials believe is easier to fix, with a focus on risk management. The article concludes by emphasizing the importance of credible justification for rate cuts, especially if there is no obvious deterioration in the broader economy. [Extracted from the article]

The Federal Reserve is facing the challenge of determining whether its monetary policy is too tight and if it needs to cut interest rates. While some builders and consumers have experienced resilience in the face of higher rates, there are signs that the economy's strength may not last. The decision to cut rates will depend on factors such as inflation and the overall state of the economy. However, there are concerns about pockets of weakness, such as commercial real estate and consumer lending. The Fed's decision will be influenced by these conflicting signals and the need to balance economic growth and inflation. [Extracted from the article]

Federal Reserve Chair Jerome Powell stated that the central bank wants more evidence that inflation is slowing sustainably before cutting interest rates this year. Powell emphasized that rate cuts will only be warranted once officials have gained greater confidence in the slowdown of inflation. The recent strength of the economy and labor market allows for a careful and thoughtful approach to rate cuts. The Federal Reserve is trying to balance the risks of moving too slowly or too quickly in easing policy, as both scenarios could have negative consequences. Powell also mentioned that the central bank is focused on supporting economic conditions that would bring inflation down while maintaining solid growth and a healthy labor market. Despite the recent inflation data, Powell characterized the recent slowdown in inflation as notable and widespread, indicating that the rise in January prices did not change the Fed's outlook for inflation to continue slowing this year. Additionally, Powell mentioned that the central bank will make significant changes to a plan to make big banks raise more capital, and the final plan will have broad support from the Fed board. [Extracted from the article]

The stock market rally in the United States hit a snag this week as inflation data showed prices rising more than expected, causing concern among investors about the Federal Reserve's efforts to combat inflation. As a result, all three major U.S. stock indexes finished the week lower. Technology and real estate stocks were particularly affected, with the Nasdaq Composite Index losing 0.8% and the S&P 500 shedding 0.5%. Some experts believe that the economy may weaken later in the year, leading to a shift towards defensive stocks. However, it is important to note that reactions to single data points may not necessarily reflect economic fundamentals. [Extracted from the article]

Efforts to boost spending on infrastructure and computer chips, along with a surge in people returning to the workforce and business formation, have helped the economy bring down inflation without a significant decline in economic activity, according to Lael Brainard, President Biden's top economic adviser. Brainard expressed optimism that progress will continue in reducing inflation. However, she expressed concern about certain consumer staples maintaining high prices despite falling input costs. Brainard also highlighted the administration's response to the pandemic, which aimed to avoid long-term damage to the economy. [Extracted from the article]

Consumer prices rose 3.1% in January, higher than expected, which has complicated the Federal Reserve's plans for rate cuts. While inflation eased compared to December, it still exceeded economists' predictions. This has led to a decline in stock prices and an increase in bond yields. The release of the inflation report has raised concerns about the path to achieving the Fed's 2% target and has led investors to believe that rate cuts may be delayed until June. Fed officials have emphasized the need for more evidence that inflation is returning to their target before considering rate cuts. Core prices, excluding food and energy, were up 3.9% in January, and overall prices were higher than expected. The Fed's preferred measure of inflation has been running cooler than the Labor Department's measure, and some officials are looking for evidence that price pressures are broadening beyond goods. Prices for groceries and other frequently purchased items remain high, which has affected consumer confidence. Economists expect inflation to cool this year, but caution that the process may be uneven. [Extracted from the article]

Federal Reserve Chair Jerome Powell stated in a rare television interview that the central bank is now focused on determining when to begin cutting interest rates. Powell emphasized that the solid economic growth allows officials to carefully approach this decision. The Fed aims to balance the risks of leaving rates too high for too long, which could lead to an economic slowdown, with the risks of cutting rates too soon and allowing inflation to exceed the Fed's 2% goal. Powell also mentioned that the economy is in a good place and that inflation is expected to decrease in a sustainable manner. [Extracted from the article]

Federal Reserve Chair Jerome Powell is facing the challenge of navigating the politics surrounding interest rate cuts in an election year. Allies of former President Donald Trump have accused the central bank of trying to help President Biden by signaling rate cuts. Meanwhile, some Democrats are concerned that keeping rates high for too long could harm the president's re-election prospects. Powell insists that politics will not influence the Fed's decisions, but outside analysts speculate that the election may impact the timing of a rate cut. The Fed's actions could have significant effects on the economy and political outcomes on Election Day. [Extracted from the article]

The Federal Reserve held its benchmark interest rate steady at its first policy meeting of the year, signaling that it was considering when to lower rates but that a cut was not imminent. The central bank wants to see more convincing evidence of a sustained downturn in inflation before making a decision. While investors had previously anticipated a rate cut in March, Fed Chair Jerome Powell stated that a March cut was unlikely. The Fed's decision had an impact on the stock market, with the S&P 500 experiencing its biggest decline since September. [Extracted from the article]

The Federal Reserve is facing a dilemma as inflation has fallen faster than expected. If inflation has truly returned to the Fed's target of 2%, then real interest rates have risen and could be restricting economic activity. The Fed is considering cutting interest rates, but wants to ensure that the lower inflation can be sustained before taking action. Some experts believe that waiting to cut rates could be risky, as heavily indebted companies may struggle with higher rates. Others argue that the economy can tolerate higher rates and that lower inflation will boost consumer confidence and spending. The Fed is also concerned about maintaining its credibility and avoiding damage to the labor market. [Extracted from the article]

The U.S. economy experienced mild inflation in December, with the personal-consumption expenditures price index rising 2.6% from the previous year, well below the increase in 2022. Core prices, excluding food and energy costs, rose 2.9% on the year, the smallest increase since March 2021. Investors expect the Federal Reserve to cut interest rates this spring due to the faster-than-anticipated decline in inflation. Consumer spending remained strong in December, with Americans spending more on services and gifts. The economy is expected to continue growing in 2024, albeit at a slower pace. [Extracted from the article]

A recent report by the Federal Reserve's inspector general cleared two former presidents of Federal Reserve banks, Robert Kaplan and Eric Rosengren, of violating policies or laws in their trading practices. However, the report did find that the presidents had not properly filed their financial disclosures, and if they had, the appearances of conflicts of interest posed by their personal investments in 2020 would likely have been worse than initially thought. The report also highlighted the need for higher standards and the avoidance of even the appearance of conflicts for leaders in such positions. The investigation comes after the Fed implemented new rules in 2022 that bar senior officials from trading in individual stocks. [Extracted from the article]

The Federal Reserve is considering slowing down its bond runoff, a process in which it reduces its holdings of bonds and other assets. This move is aimed at preventing disruption in the financial markets. The Fed began shrinking its holdings in 2017, but officials are now concerned about the potential negative effects of continuing at the current pace. Slowing down the runoff could help avoid a shortage of reserves and allow the program to continue for longer. However, the Fed is cautious and will rely on market signals to determine the appropriate level of reserves. [Extracted from the article]

The Federal Reserve, the central bank of the United States, reported its largest-ever annual operating loss of $114.3 billion in 2023. This loss was a result of the Fed's efforts to support the economy during the COVID-19 pandemic and then combat high inflation by raising interest rates. The losses could continue as long as interest rates remain high, potentially leading to political criticism of the Fed. However, these losses do not affect the Fed's day-to-day operations and will not require the central bank to seek funding from the Treasury Department. The Fed is required by law to send its earnings, minus operating expenses, to the Treasury, but the losses in 2023 mean that the federal deficit has been slightly larger than it would have been otherwise. [Extracted from the article]

Inflation in the United States increased slightly in December 2023, after a year of significant cooling. The consumer-price index rose by 3.4% from the previous year, showing that inflation is still a concern. However, this is a significant improvement from the 6.5% rise in 2022. Wages also increased by 0.8% in 2023, marking the first real wage gains in three years. While there are hopes for a soft landing and further decline in inflation, some underlying price pressures, such as rising restaurant prices, persist. [Extracted from the article]

Alberto Musalem, an economist and former senior adviser at the New York Fed, has been appointed as the next president and chief executive of the Federal Reserve Bank of St. Louis. Musalem brings extensive experience in financial markets and international affairs, having served as the CEO of Evince Asset Management and in various roles at Tudor Investment Corporation and the International Monetary Fund. His appointment is seen as potentially adding market expertise to the Fed's interest-rate-setting committee. Musalem, who was born in Colombia, will be the second Fed policymaker of Hispanic heritage. [Extracted from the article]

The Federal Reserve officials have indicated that they are uncertain about when to start lowering interest rates, despite holding them steady last month. While most officials anticipate that rates will eventually be lowered before the end of the year, there is disagreement about the timing. Some officials are concerned about leaving rates too high for too long, while others believe that circumstances may warrant keeping rates at their current value for longer. The minutes of the meeting also suggest that officials could become nervous if markets rally too much, making it harder to slow the economy and keep inflation down. [Extracted from the article]

San Francisco Federal Reserve President Mary Daly has stated that rate cuts may be necessary in 2024 to prevent the economy from becoming too tight. Daly believes that if inflation continues to decline, even with three rate cuts next year, the benchmark interest rate will still be restrictive. She also emphasized the importance of considering the impact of restrictive policies on the labor market and ensuring that jobs are not sacrificed for price stability. Daly's comments come after the Federal Reserve projected three rate cuts for 2024, causing stocks to surge and bond yields to fall. [Extracted from the article]

Federal Reserve Chair Jerome Powell's recent comments about inflation have caused confusion among investors about when and how quickly the Fed might cut interest rates. After projecting at least three rate cuts next year, Fed officials were surprised that investors expected even faster and deeper cuts. Powell's remarks about declining inflation and not leaving rates too high for too long sparked a market rally and speculation of a March rate cut. However, some Fed officials have pushed back against this speculation, leading to uncertainty about the future of interest rates. [Extracted from the article]

Federal Reserve officials have expressed differing views on when they might begin to lower interest rates next year. New York Fed President John Williams stated that they are not currently discussing rate cuts and are focused on determining if monetary policy is sufficiently restrictive. However, Chicago Fed President Austan Goolsbee suggested that recent declines in inflation may necessitate earlier rate cuts. The Fed's comments have led to increased speculation and changes in market forecasts for rate cuts next year. [Extracted from the article]