Tag: Powell, Jerome H

CPI Report: Inflation Rose Unexpectedly in January

U.S. inflation rose to 3 percent in January, strengthening the case for the Federal Reserve to extend a pause on interest rate cuts. The Consumer Price Index unexpectedly ticked higher from a year earlier, data from the Bureau of Labor Statistics showed on Wednesday, up from 2.9 percent in December. Compared to December, consumer prices […]

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Fed Chair Faces Lawmakers at a Critical Juncture

When Jerome H. Powell, chair of the Federal Reserve, last testified in front of Congress in July, he hailed the “considerable progress” the central bank had made in taming rapid inflation and set the stage for a pivot toward lower interest rates. Mr. Powell confronts a far different economic and political landscape as he prepares […]

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Job Market Gives Fed Cover to Extend Interest Rate Pause

Less than six months ago, Federal Reserve officials were wringing their hands about the state of the labor market. No major cracks had emerged, but monthly jobs growth had slowed and the unemployment rate was steadily ticking higher. In a bid to preserve the economy’s strength, the Fed took the unusual step of lowering interest […]

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Trump’s Executive Orders Leave Imprint on the Fed

President Trump has so far restrained himself from trying to meddle with the Federal Reserve on matters related to monetary policy during his second term. But some of the more than 50 executive orders he has signed since returning to the White House are leaving an imprint on the central bank. The latest evidence is […]

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The Fed Is Sitting on the Sidelines, but for How Long?

Financial markets have survived a series of rapid-fire miniature crises lately. What’s remarkable is that the Federal Reserve hasn’t yet needed to get involved in any of them. Enjoy the calm while it lasts. I think it’s a good bet that what we are seeing is a rare moment of peace for the Fed, an […]

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Inflation Ticked Up in December, Fed’s Preferred Measure Shows

The Federal Reserve wants to see more evidence that inflation is easing before resuming interest rate cuts. The latest data presented a mixed picture. The central bank’s preferred inflation measure, released on Friday, climbed 2.6 percent in December from a year earlier, faster than its 2.4 percent rate in November and quicker than the central […]

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The Fed Is About to Hit Pause on Rate Cuts. Here’s Why.

At the Federal Reserve’s final gathering of 2024, Chair Jerome H. Powell announced that the U.S. central bank was embarking on a “new phase” in how it would set interest rates. The Fed planned to “move cautiously” with cuts going forward, Mr. Powell told reporters at the time, reflecting officials’ thinking that they could afford […]

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Rate-Cut Decision Was Narrow, Fed Minutes Show

Federal Reserve officials cut interest rates as expected last month. But minutes from their December meeting suggest that the decision was a close call — and that there is no guarantee policymakers will lower rates again anytime soon. The minutes of the central bank’s Dec. 17-18 meeting, released on Wednesday, showed that most Fed officials […]

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