Tag: Federal Reserve System

Fed Cuts Interest Rates by Another Quarter Point

WASHINGTON — The Federal Reserve cut interest rates by a quarter of a percentage point on Wednesday, its second move since late July, as it tries to insulate the economy against rising political risks and the fallout from a global slowdown. A growing number of officials expect one more reduction this year, based on economic […]

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The Fed Is Poised to Cut Rates Again. Here’s What to Watch.

WASHINGTON — Federal Reserve officials are expected to cut interest rates for a second time on Wednesday, a move that could prove divisive among Fed officials and aggravate President Trump’s anger toward the central bank. The Fed’s rate decision, which will be announced at 2 p.m. in Washington, will be accompanied by a fresh set […]

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A Rerun From the 1970s? This Economic Episode Has Different Risks

ImageA gas line in December 1973 in New York City. Today, the U.S. is better protected from oil price shocks. CreditMarty Lederhandler/Associated Press History doesn’t repeat, they say, but it often rhymes. And the latest economic headlines feature an uncanny tonal resemblance to those of the early 1970s. General Motors workers are on strike, seeking more […]

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Trump Urges ‘Big’ Rate Cut as Fed Faces Challenges

WASHINGTON — The Federal Reserve is poised to cut interest rates for the second time this year on Wednesday as policymakers try to get ahead of economic risks emanating from a global slowdown, President Trump’s trade war and uncertainty about the road ahead. The central bank’s leadership is under immense political pressure from Mr. Trump, […]

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The Fed Faces a Tough End to 2019 as Worries Cloud the Horizon

WASHINGTON — The Federal Reserve is poised to cut interest rates for a second time on Wednesday as policymakers try to get ahead of economic risks emanating from a global slowdown, President Trump’s trade war and uncertainty about the road ahead. Investors largely expect a rate cut, but the decision could be contentious as Fed […]

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Trump Hits the Panic Button

Donald Trump marked the anniversary of 9/11 by repeating several lies about his own actions on that day. But that wasn’t his only concern. He also spent part of the day writing a series of tweets excoriating Federal Reserve officials as “Boneheads” and demanding that they immediately put into effect emergency measures to stimulate the […]

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Trump Calls for Fed’s ‘Boneheads’ to Slash Interest Rates Below Zero

WASHINGTON — President Trump urged the Federal Reserve to cut interest rates below zero, suggesting a last-ditch monetary policy tactic tested abroad but never in America. His comments came just one day before European policymakers are widely expected to cut a key rate further into negative territory. In a series of tweets, Mr. Trump said […]

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August Jobs Report: What to Look For

The Labor Department will release its estimate of hiring and unemployment for August at 8:30 a.m. Eastern time. The monthly report provides a snapshot of the American economy. Here’s what to watch for: Analysts on Wall Street are predicting a gain of 160,000 jobs, according to Bloomberg, compared with an increase of 164,000 in July. […]

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A Recession Isn’t Inevitable: The Case for Economic Optimism

ImageVehicles leaving the assembly line at the G.M. plant in Spring Hill, Tenn., last month. The U.S. manufacturing sector shrank in August, for the first time since 2016.CreditHarrison Mcclary/Reuters There is at least one bull market underway: in recession fears. It’s apparent in how ordinary Americans are thinking about the economy. In August, consumer sentiment […]

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Only the Fed Can Save Us

Here’s the moment I realized the next financial crisis is inevitable. It wasn’t Aug. 23, when the president wondered who was our “bigger enemy,” Jerome Powell, the chair of the Federal Reserve Board, or President Xi Jinping of China. It wasn’t the week before those comments, when it looked as if the trade war would […]

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Fed Could Hit Back at Trump, a Former Top Official Suggests

WASHINGTON — A former top Federal Reserve official implied that the central bank should consider allowing President Trump’s trade war to hurt his 2020 election chances, an assertion that drew a firestorm of criticism and a rare pushback from the Fed itself. William Dudley, the former president of the Federal Reserve Bank of New York […]

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Asian Stocks Drop as the U.S.-China Trade War Worsens

BEIJING — Asian markets opened broadly lower on Monday after a tumultuous weekend of events that further clouded prospects for a foreseeable end to the trade war between the United States and China. Stocks in Hong Kong, where weekend clashes between the police and anti-government demonstrators grew increasingly violent, opened more than 3 percent lower. […]

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One Crazy Day Showed How Political Chaos Threatens the World Economy

ImageJerome Powell, the Federal Reserve chairman, left, and Mark Carney, governor of the Bank of England, in Jackson, Wyo., on Friday.CreditAmber Baesler/Associated Press The series of economic and financial developments on Friday was a strange, bewildering, exhausting microcosm of why the global economy is at risk of a meltdown. It showed the odd interplay at […]

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As Trump Calls for Cuts, Powell Stresses Limits of Fed Policy

Jerome H. Powell, the Federal Reserve chair, kept future interest rate cuts squarely on the table on Friday while stressing that the central bank’s powers to right the economy were limited by President Trump’s trade policies, which continue to pose risks to the economic outlook. “While monetary policy is a powerful tool that works to […]

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Stocks Dip After China Announces Retaliatory Tariffs on U.S. Goods

Wall Street stocks dipped and major European indexes fell on Friday after Beijing said it would answer President Trump’s next round of tariffs on Chinese goods by increasing tariffs on American imports, the latest sign that the trade war between the two countries could drag on. Dow Jones industrial average and S&P 500 futures had […]

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Central Bankers Want to Keep Economies Growing, but Politicians Hold the Keys

JACKSON, Wyo. — As top economists from around the globe gather for their annual conference at Jackson Hole this week, they will have a collective hope in mind: That the world’s political leaders will work to help safeguard economic growth. Economies from the United States to the European Union to China are slowing, presenting a […]

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Fed Was Divided About Interest Rate Cut

WASHINGTON — Federal Reserve officials were sharply divided when they voted to cut interest rates for the first time in a decade in late July, newly-released minutes from their meeting last month show. Officials lowered borrowing costs by a quarter of a percentage point at their last meeting, citing slowing global growth, uncertainties from President […]

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Trump’s Economic Message: Everything Is Great, but We Need Huge Stimulus Now!

ImagePresident Trump on Tuesday ahead of a meeting with the president of Romania.CreditDoug Mills/The New York Times Every time the economy trembles, the president and White House staff face a quandary. On one hand, they wish to instill confidence and project optimism. No president wants to talk down the economy, and a pessimistic tone from […]

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Want to Prevent a Recession, Mr. Trump? Stop Hurting the Economy

Here’s some free advice for President Trump and his economic advisers, who are frantically searching for measures to ward off a recession: Look in the mirror. The White House has reason to worry about the economic outlook. There are clear signs of weakness in recent economic data, and forecasters see an increasing chance that the […]

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