Tag: Inflation (Economics)

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 […]

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After the Fed’s Second Rate Cut, Hints of Another to Come

Days after the Federal Reserve lowered borrowing costs for a second time since July, a top Fed official signaled that further interest rate cuts could come before year-end. Vice Chairman Richard Clarida, asked in an interview whether markets had seen the final reduction in borrowing costs for 2019, chose to emphasize that the Fed’s September […]

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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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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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E.C.B. Acts to Head Off Threat of Recession in Europe

FRANKFURT — The European Central Bank took steps on Thursday to stimulate the eurozone economy, moving to head off a downturn before the problem gathers momentum. In a bid to increase lending, the bank increased the de facto penalty it imposes on commercial banks that hoard cash. The bank’s Governing Council also said it would […]

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Fed Chair Powell Says Central Bank Will Keep Economic Expansion Going

ZURICH — The Federal Reserve chair, Jerome H. Powell, said on Friday that the Fed remains committed to keeping the United States economic expansion going, remarks that signal the Fed is likely to cut interest rates again at its coming meeting. “The Fed has, through the course of the year, seen fit to lower the […]

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Trump’s Trade War Washes Up on Australia’s Shore

WASHINGTON — Australia’s economy is experiencing its 28th year of a record-shattering expansion, with strong employment growth and high economic potential. But the Reserve Bank of Australia cut rates to a record low last month — a development that underscores how intertwined the global economy has become and how big a threat President Trump’s trade […]

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Trump Faces a Stubborn Opponent in Fed’s Economic Experts

JACKSON, Wyo. — President Trump characterizes himself as a master deal maker who gets what he wants. But as he tries to pressure the Federal Reserve to lower interest rates, he is contending with a powerful opponent: technocrats. The Fed lowered borrowing costs in July amid mounting trade uncertainties, but it has refused to promise […]

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A Year of Stock Market Fury, Signifying Nearly Nothing

Despite wild swings stemming from the trade war, gains over the last 12 months have been tiny. #g-market-12-months-box .g-artboard { margin:0 auto; } #g-market-12-months-box p { margin:0; } .g-aiAbs { position:absolute; } .g-aiImg { display:block; width:100% !important; } .g-aiSymbol { position: absolute; box-sizing: border-box; } .g-aiPointText p { white-space: nowrap; } #g-market-12-months-300 { position:relative; overflow:hidden; […]

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Economic Trouble Signs Hang Over Trump’s Trade War

WASHINGTON — Against the backdrop of mounting evidence that the global economy is weakening, President Trump is caught between his desire to pursue the trade war with China he promised to win and his need to keep the economy humming as the 2020 election approaches. That conflict explains some of the messaging from Mr. Trump […]

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Trump Plans More Tariffs for China. You’ll Feel This Round.

President Trump announced another wave of China tariffs this week, essentially saying he would impose a tax on nearly all $540 billion in Chinese goods that come into the United States in a year. And this batch could really bite. The administration carefully tailored previous rounds of tariffs to pinch businesses in ways that most […]

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In the Fed’s Rate Cut, a Focus on Everyday Workers

WASHINGTON — The Federal Reserve’s decision to cut rates for the first time in more than a decade was driven, in part, by a recognition that policymakers have a role to play in the fate of American workers. Though the United States has experienced a record period of uninterrupted growth and unemployment is close to […]

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The Economy Is Booming. Or Is It?

Listen and subscribe to our podcast from your mobile device: Via Apple Podcasts | Via RadioPublic | Via Stitcher The United States economy is in the middle of a record-long expansion. So why is the government deploying an economic weapon it last used during the 2008 financial crisis? [For an exclusive look at how the […]

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Why Rate Cuts Don’t Help Much Anymore

Now that it has finally happened, don’t expect the Federal Reserve’s long-awaited rate cut to make all that much of a difference for the economy. In the weeks leading up to Wednesday’s decision to cut the benchmark Fed funds rate by 0.25 points to 2.25 percent, the stock market seemed to leap whenever Jerome H. […]

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Why the Fed Cut Rates: To Try to Fix Last Year’s Mistake

ImageTraders on the floor of the New York Stock Exchange watching Jerome Powell’s news conference on Wednesday.CreditBrendan Mcdermid/Reuters Several of the questions directed at Jerome Powell at his Wednesday afternoon news conference boiled down to this: Why did you just cut interest rates when, by your own acknowledgment, the American economy looks perfectly solid? What […]

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What to Watch Ahead of the Fed Meeting

The Federal Reserve is almost universally expected to cut interest rates when its meeting wraps up on Wednesday, the first reduction since officials slashed them to near zero in 2008, during the dark days of the financial crisis. It’s a turning point, and a precautionary one. Uncertainty stirred up by President Trump’s trade war and […]

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Fed Poised to Cut Rates for First Time Since Financial Crisis, Ending an Era

WASHINGTON — The Federal Reserve this week will most likely cut interest rates for the first time since 2008, when the economy was mired in a deep recession, as the central bank tries to keep a record economic expansion from petering out. The expected change, while likely to be small, will end an era of […]

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Investors Are Usually Wrong. I’m One of Them.

Forget about getting everything right. Most people are so consistently wrong that merely avoiding major errors is enough to set you apart from the pack. That is the message in the latest data from Dalbar, a Massachusetts research firm that has been studying the behavior of mutual fund investors for 25 years. Over the past […]

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