Tag: Federal Reserve System

Fed Unlikely to Cut Rates Again Unless Economy Shows Signs of Weakening

WASHINGTON — Federal Reserve officials do not plan to cut interest rates again unless economic data begins to show cracks, a message reinforced by the minutes from their October meeting. After the Fed cut interest rates last month — its third reduction this year — most officials thought that policy “would be well calibrated” to […]

Read More

Trump Isn’t the First President to Make War on the Federal Reserve

Taking to Twitter late last month, President Trump made clear that when it comes to the economy, the real enemy is not in Beijing, but just down the street from the White House, in the headquarters of the Federal Reserve. The Fed’s chairman, Jerome Powell, had recently led his board in lowering interest rates by […]

Read More

Fed Chair Paints Rosy Economic Picture, but Says Risks Remain

WASHINGTON — Jerome H. Powell, the Federal Reserve chair, will paint an optimistic picture of the United States economy in testimony before Congress on Wednesday, though he warns that threats to the outlook persist. “In particular, sluggish growth abroad and trade developments have weighed on the economy and pose ongoing risks,” Mr. Powell will say, […]

Read More

A Recession Warning Reverses, but the Damage May Be Done

The message from Wall Street is clear: The American economy is not in the kind of trouble that investors feared earlier this year. Stocks are at all-time highs and climbing. Yields on long-term government bonds, which reflect expectations for growth and inflation, are also rising. Corporate bond spreads show that investors are more confident in […]

Read More

Stocks Hit Record After Jobs Report

Stocks rose Friday after a strong jobs report reassured investors about the health of the United States economy. Employers added 128,000 jobs in October, more than economists had expected, the Labor Department said, and revisions to prior months’ data tacked on another 95,000 jobs. October’s figure would have been stronger had it not been for […]

Read More

It Will Take More Than Lower Mortgage Rates for a Housing Rally

The Federal Reserve is hoping that its latest interest-rate cut will help keep the economy safely at cruising altitude. But don’t expect it to provide much of a lift to the housing market. Housing is one of the pathways by which Fed policy produces results. When the central bank cuts interest rates, it encourages people […]

Read More

Federal Reserve Cuts Interest Rates for Third Time in 2019

WASHINGTON — The Federal Reserve cut interest rates Wednesday for the third time this year while signaling that it may pause to weigh incoming data before adjusting borrowing costs again. The decision to lower rates to a range of 1.5 to 1.75 percent came as a global manufacturing slowdown and uncertainty stemming from President Trump’s […]

Read More

G.D.P. Grew at 1.9% Rate in Quarter, a New Sign of Slowdown

Dogged by uneasiness over trade frictions and weak global growth, the American economy’s growth inched lower over the summer. Gross domestic product — the broadest measure of goods and services produced in the economy — grew at a 1.9 percent annual rate for the third quarter, according to preliminary data released by the Commerce Department […]

Read More

What Will Today’s G.D.P. Reading Show? Here’s a Preview

The Commerce Department will release its initial estimate of the gross domestic product — the broadest measure of goods and services produced in the economy — for the third quarter at 8:30 a.m. on Wednesday. Here’s what to watch for: Wall Street analysts expect the figures to show that the economy grew at an annual […]

Read More

Women Are Missing at Central Banks

FRANKFURT — The European Central Bank might seem an unlikely place to hold a conference on gender equality. Or it might be exactly the kind of place that needs to. Only one member of the bank’s policymaking Governing Council is a woman — and she recently announced her resignation. The situation is similar at other […]

Read More

Bank Regulators Present a Dire Warning of Financial Risks From Climate Change

WASHINGTON — Home values could fall significantly. Banks could stop lending to flood-prone communities. Towns could lose the tax money they need to build sea walls and other protections. These are a few of the warnings published on Thursday by the Federal Reserve Bank of San Francisco regarding the financial risks of climate change. The […]

Read More

Fed Votes to Lighten Regulations for All but the Largest Banks

Federal Reserve Board members voted on Thursday to adjust key bank regulations put in place after the financial crisis, enacting a series of changes that one board governor, Lael Brainard, warned could weaken “core safeguards.” Regulators are tying rules more closely to bank size, reducing the necessary level of cash and government bond stockpiles at […]

Read More

Fed Officials Voice Concern About Slowdown’s Effect on Hiring

WASHINGTON — Several Federal Reserve policymakers, at their most recent meeting, voiced concern that weaker business activity and investment could lead to slower hiring and consumer spending, according to minutes of the meeting published on Wednesday. The Fed cut interest rates for a second time this year at that meeting, in mid-September, after a reduction […]

Read More

Fed Chair Powell Signals Balance Sheet Will Grow Soon After Recent Market Turmoil

DENVER — The Federal Reserve chair, Jerome H. Powell, said on Tuesday that the central bank would once again begin expanding its portfolio of government-backed securities and continued to leave the door open to another interest rate cut this month. While “policy is not on a preset course,” Mr. Powell said, the Fed will “act […]

Read More

Another Fed Rate Cut Is Expected After Weak Economic Data

Top Federal Reserve officials have said they are open-minded about whether additional interest rate cuts will be necessary in 2019, but recent economic data may put that equanimity to the test. The central bank cut rates for the first time since the Great Recession in late July, then followed that up in mid-September, likening the […]

Read More

The Fed, Long Dominated by White Men, Is Trying to Change

The Federal Reserve’s research staff is far less diverse than the American population it is meant to serve, a reality that the central bank is trying to change as a reckoning over inclusion sweeps through the economics profession. Three in four Fed economists are men and a majority of those are white. That matters beyond […]

Read More

Wall Street Is Buzzing About Repo Rates. Here’s Why.

Investors take for granted that the Federal Reserve controls interest rates. Rarely do they have to think about how. But a surprisingly lively couple of days in short-term money markets has meant that the “how” became nearly as important as the “why.” The stress started on Monday in the market for repurchase agreements, or repos. […]

Read More

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 […]

Read More

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 […]

Read More

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 […]

Read More

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, […]

Read More