Tag: Federal Reserve System

Flip-Flop by Fed Scrambles Outlook for World Markets

Once again, the Federal Reserve has upended markets. Investors had been bracing for the Fed to keep raising interest rates and shrinking its vast portfolio of assets, the equivalent of tapping on the brakes of the United States economy. But this year, the central bank has signaled that it was backing off. Much has been […]

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To Avoid a Recession, Start Spending Now

The strong economic growth of mid-2018 — the stock market soared, hiring picked up and consumer spending surged — reflected, in part, the benefits of a boost in fiscal stimulus. The Trump administration pushed for, and got, a huge tax cut, and then, to give the economy even more oomph, Congress passed budgets for fiscal […]

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Trump’s Policies, Not His Insults, Contributed to the Fed’s Shift

WASHINGTON — President Trump in 2018 repeatedly urged the Federal Reserve to stop raising interest rates, warning that its “crazy” policies were jeopardizing the economic expansion. This week, the Fed stopped. The central bank did not raise its benchmark rate at its first meeting of 2019, and said it had no plans to raise rates […]

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Here’s What the Fed’s Halt on Interest Rates Means for Your Wallet

The Federal Reserve indicated on Wednesday that it was done raising interest rates for the foreseeable future, after a run of incremental increases that began to affect the typical consumer’s wallet. The decision will hold the central bank’s benchmark for short-term rates to a target between 2.25 and 2.5 percent, the level it reached in […]

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The Hot Topic in Markets Right Now: ‘Quantitative Tightening’

Anyone paying attention to financial markets in recent months knew that the Federal Reserve’s management of the economy was perhaps the single most important question on the minds of investors. The Fed, of course, has been raising interest rates, including four increases last year, which unnerved many investors. These days, though, the focus has shifted […]

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Fed Expected to Hold Rates Steady and Emphasize Patience

WASHINGTON — The Federal Reserve has adopted a new theme for the new year: patience. It is not expected to announce any change in its benchmark interest rate on Wednesday, after its first policymaking meeting of 2019. The Fed’s chairman, Jerome H. Powell, is expected to emphasize that the Fed will take time to evaluate […]

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Government Shutdown Is Over, So Where Is the Economic Data?

The government is back. Government data, however, will have to wait awhile. The partial government shutdown left forecasters, investors and policymakers without much of the data they rely on — just as concerns were mounting that the United States’ decade-long economic expansion could be nearing its end. Now the shutdown is over. But it will […]

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Wall St. Is Making a Comeback. Was It Something the Fed Said?

Stocks have staged a remarkable turnaround in the early days of 2019, rebounding after an end-of-the-year tailspin that was fomented by fears of recession in the United States. Three straight weeks of gains in the new year on Wall Street have erased nearly all of 2018’s losses. It’s the best start to a year since […]

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The Shutdown Isn’t the Only Threat to the Economy

The momentum behind the American economy is strong. In 2018, unemployment hit its lowest rate in 49 years, 3.7 percent. Real wages were (finally) increasing and inflation remained muted. In 2019, growth is projected to slow but still remain above 2 percent. Yet risks abound. The trade war and the escalating drama over the government […]

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Fed Ready to Pause on Interest Rate Increases

A pair of influential Federal Reserve officials said Wednesday that the central bank should pause to assess economic conditions before considering additional increases in its benchmark interest rate, reinforcing the message delivered last week by the Fed chairman, Jerome H. Powell. The Fed on Wednesday also published an account of its most recent meeting, in […]

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Fed Chairman Powell to Markets: I Hear You

ImageThe Fed chairman, Jerome Powell, left, with his two immediate predecessors, Janet Yellen and Ben Bernanke, in Atlanta on Friday.CreditJessica Mcgowan/Getty Images ATLANTA — It was only 16 days ago when the Federal Reserve raised interest rates and its chairman, Jerome Powell, conveyed that he was fundamentally confident about the outlook for the United States […]

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Powell Says Fed Prepared to ‘Shift’ Path as Economic Data Warrant

ATLANTA — Federal Reserve Chairman Jerome H. Powell sought to calm worried investors on Friday, casting the United States economy as strong but promising to adjust monetary policy quickly if global growth slows under the burden of an ongoing trade war. “I think the markets are pricing in downside risks, is what they’re doing,” Mr. […]

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Joyful Headlines About Race and Equality

Another year of grim headlines about detained and deported immigrants, hate crimes, and the police being called on black people for doing everyday things like gardening or going swimming. But 2018 also held glimmers of hope — if you search hard enough — with stories about racial equality and justice. Here are a few of […]

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Asia Markets Follow Wall Street’s Rise, but Europe Is More Cautious

HONG KONG — Global markets surged out of their holiday doldrums with big increases on Thursday driven by Wall Street’s gains, but ran out of steam in Europe. Market indicators suggested the positive vibes were unlikely to last. Futures that track the performance of stocks in the United States suggested New York markets would open […]

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Trump’s King Minus Touch

ImagePresident Trump in the Oval Office on Tuesday.CreditAl Drago for The New York Times There’s a saying, now associated with the investor Warren Buffett, that if you’re playing poker for 30 minutes and you don’t know who is the fool at the table, the fool is you. Since President Trump once owned casinos, you’d think […]

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‘America Is Respected Again!’ Trump Tweets as Allies Question His Leadership

WASHINGTON — President Trump modified his favorite campaign slogan in a defensive response to a shifting worldview on Monday, tweeting “AMERICA IS RESPECTED AGAIN!” even as lawmakers and foreign allies alike braced for the potentially destabilizing effects of his policy decisions on national security. He also said Saudi Arabia would “spend the necessary money needed […]

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Stock Market Rout Has Trump Fixated on Fed Chair Powell

WASHINGTON — President Trump has unabashedly hitched his political fortunes to a rising stock market. Now, with stock prices in retreat, he has become increasingly fixated on the idea that one man is to blame for the recent rout: Jerome H. Powell, chairman of the Federal Reserve. After the Fed raised its benchmark interest rate […]

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Mulvaney and Mnuchin Say Trump Knows He Lacks Authority to Fire Fed Chairman

Mick Mulvaney, the incoming acting White House chief of staff, said on Sunday that President Trump does not believe he has the authority to the fire the Fed chairman, Jerome H. Powell, echoing comments made by Treasury Secretary Steven Mnuchin. The statements came after news reports began circulating that Mr. Trump had asked aides whether […]

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Hard-Money Men, Suddenly Going Soft

I have a confession to make: I have been insufficiently cynical about modern conservative economics. Longtime readers may find this hard to believe. After all, I declared Paul Ryan a “flimflam man” back when all the cool kids were gushing about his courage and honesty, giving him awards for fiscal responsibility. (Events have settled the […]

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Global Markets Follow Wall St.’s Slide After Fed’s Move on Rates

Global markets on Thursday echoed Wall Street’s drop from the day before, and central backs were the most likely culprit. Japanese investors led their counterparts around the world in mirroring Wall Street’s disappointment in the actions the Federal Reserve took on Wednesday. The Fed, as expected, raised its benchmark interest rate one-quarter of a percentage […]

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