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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 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 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]

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]

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 Chair Jerome Powell has indicated a shift in the central bank's stance on interest rates, moving away from raising rates and towards considering rate cuts. This change comes as inflation has slowed, prompting concerns about the potential harm of keeping rates too high. Powell's comments and projections of three rate cuts next year mark a significant reversal from previous statements about raising rates to combat inflation. The stock market responded positively to the news, with all three major indexes climbing. [Extracted from the article]

Inflation in the United States has stabilized at levels below last year's high but still above pre-pandemic levels, according to the Labor Department. The consumer-price index rose 3.1% in November from a year earlier, slightly slower than October but higher than expected. While the pace of improvement is mildly disappointing, economists believe that trends remain favorable. Treasury Secretary Janet Yellen stated that inflation is coming down and expects it to gradually decline to levels consistent with the Federal Reserve's target. [Extracted from the article]

The U.S. economy added 199,000 jobs in November, indicating a gradual cooling of the labor market. This slower job growth is consistent with pre-pandemic levels and suggests a soft landing for the economy. The unemployment rate fell to 3.7%, and wage growth picked up slightly. The Federal Reserve is likely to hold rates steady at its next meeting, as the data supports a soft landing scenario. Sectors such as healthcare and government have seen the most job gains, while industries like transportation and retail have experienced slower growth. Overall, economists expect cooler wage gains and softening labor market conditions to impact consumers and economic output in 2024. [Extracted from the article]

Consumer prices remained flat in October, signaling a slowdown in inflation and likely ending the Federal Reserve's interest rate increases. Overall inflation rose 3.2% from a year earlier, a slower pace than in September. Core inflation, which excludes volatile food and energy items, also showed a decrease in underlying price pressures. This news led to rallies on Wall Street, with stocks and government bonds soaring. However, many Americans are still concerned about the high prices of goods and services. The Fed is expected to extend its pause in rate increases at its next meeting in December. [Extracted from the article]

Yields can rise because investors expect the Fed will have to raise short-term interest rates more to slow inflation or because they expect inflation to rise. Powell's comments Wednesday suggest he expects the Fed's rate increases, along with the continuing process of shrinking its $7.9 trillion asset portfolio, will eventually slow the economy, said Michael de Pass, global head of rates trading at Citadel Securities. Keywords: gfx-contrib; wsjwashington; inflation; Monetary Policy; Interest Rates; Economic News; SYND; WSJ-PRO-WSJ.com; Jerome Powell EN gfx-contrib wsjwashington inflation Monetary Policy Interest Rates Economic News SYND WSJ-PRO-WSJ.com Jerome Powell N.PAG N.PAG 1 11/06/23 20231102 NES 231102 The central bank is sorting through the implications of unexpectedly strong growth and higher borrowing costs Federal Reserve Chair Jerome Powell said Wednesday that the central bank will leave its benchmark interest rate unchanged, marking the second consecutive meeting with no increase. [Extracted from the article]

Yields can rise because investors expect the Fed will have to raise short-term interest rates more to lower inflation or because they expect inflation to rise. In the 2000s, then-Fed Chairman Alan Greenspan called it a conundrum that long-term rates stubbornly refused to rise as the Fed increased short-term rates. "That the bond market is delivering the tightening the Fed wants means the Fed can be a bit more cautious", said Shamik Dhar, chief economist at BNY Mellon Investment Management. [Extracted from the article]

Keywords: gfx-contrib; inflation; North America; United States; Monetary Policy; Interest Rates; Economic News; Political/General News; General Labor Issues; Content Types EN gfx-contrib inflation North America United States Monetary Policy Interest Rates Economic News Political/General News General Labor Issues Content Types N.PAG N.PAG 1 10/10/23 20231007 NES 231007 U.S. employers added more jobs than forecast last month, keeping door open for Fed rate increases Surging U.S. job growth shattered investors' expectations, the latest sign ofaccelerating economic momentum stoking a bond market selloff that is sending longer-term borrowing rates to new 16-year highs. The increase in yields since Fed officials' last meeting is equivalent to a quarter-percentage point rate increase in the Fed's short-term rate, she said. [Extracted from the article]