Tag: Interest Rates

Trump Meets With Fed Chair Powell for a ‘Cordial’ Talk

WASHINGTON — The chair of the Federal Reserve, Jerome H. Powell, met with President Trump on Monday to discuss the economy, a first since Mr. Trump labeled the central bank head and his colleagues “boneheads” and questioned whether Mr. Powell or President Xi Jinping of China was a bigger “enemy” of America. The meeting, which […]

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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 […]

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Subzero Interest Rates Are Luring Insurers to Risk

MUNICH — It was a crisp fall morning, and Tom Wilson was contemplating the latest sign that the world of finance had turned upside down. Greece had just sold bonds with a negative interest rate. It was the most recent example of how policies that revived growth after the last financial crisis have forced investors […]

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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, […]

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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 […]

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Recession Fears Are Receding. That Doesn’t Mean They Were Unfounded.

ImageA trader at the New York Stock Exchange in August, during a period when the yield curve was inverted and stocks took a dive. Credit…Richard Drew/Associated Press Imagine you are in a car speeding down the road. An obstruction comes into view, and the passengers in the car yell, “Watch out!” The driver swerves and […]

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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 […]

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Jobs Are Plentiful. Big Pay Raises Aren’t.

ImageAt a Wendy’s in Miami last month.Credit…Joe Raedle/Getty Images There are three basic stories that employment data have been telling us in the last few months. The October numbers, released Friday, confirm two of them and undermine the third. The first story: Jobs are plentiful and unemployment low. Most everyone who wants a job can […]

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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 […]

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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 […]

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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 […]

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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 […]

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Mario Draghi’s Last Hurrah Clouded by Divisions at E.C.B.

FRANKFURT — Mario Draghi presided over his last monetary policy meeting as president of the European Central Bank Thursday, his legacy as savior of the eurozone clouded by divisions among the bank’s policymakers that have burst into the open in the final months of his tenure. Christine Lagarde will be sworn in as Mr. Draghi’s […]

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How to Invest When the Market Can’t Make Up Its Mind

Stocks have been even more fickle than usual. The main stock indexes are all up this month, and they have had double-digit gains since January. But it has been hard for traders to muster much enthusiasm. Despite the recent rallies, stocks haven’t made substantial net gains since the beginning of last year. For the American […]

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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 […]

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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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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 […]

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The New York Fed Chief Is Facing His Biggest Test. Here’s His Response.

John C. Williams, president of the Federal Reserve Bank of New York, has spent the past two weeks grappling with the regional bank’s most tumultuous period in years. Since Sept. 16, a shortage of dollars in an obscure but crucial corner of short-term Wall Street funding, called the repo market, has forced the New York […]

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The Fed May Have Shrunk Its Balance Sheet Too Much. Does It Matter?

President Trump spent nearly a year insisting that the Federal Reserve should stop shrinking the vast holdings of government-backed securities on its balance sheet, arguing that the process was reining in the United States economy. Last week may have vindicated Mr. Trump’s perception that the central bank went too far with the process — often […]

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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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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. […]

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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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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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