Tag: Powell, Jerome H

Ben Bernanke Sees ‘Stagflation’ Ahead

Standing in his kitchen one morning in Washington, D.C., and drinking a glass of lightly flavored water, Ben Bernanke is wearing a gray suit, a button-down shirt, no tie and a pair of Brooks running sneakers. He looks a far cry from his time at the Federal Reserve, where he presided as chairman for eight […]

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Jerome Powell Confirmed for a Second Term as Fed Chair

Jerome H. Powell, the Federal Reserve chair, was confirmed to a second four-year term at the head of the central bank on Thursday — keeping him in one of the most consequential jobs in the United States and world economy at a moment of rapid inflation and deep uncertainty. Mr. Powell, who was first chosen […]

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Lisa Cook Becomes First Black Woman Confirmed as a Fed Governor

The Senate confirmed Lisa D. Cook as a Federal Reserve governor on Tuesday, making her the first Black woman to hold that influential policy post. Her confirmation came after Vice President Kamala Harris broke a 50-to-50 tie in the Senate, moving the Biden administration one step closer to reshaping the leadership team at the central […]

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Fed Confronts Why It May Have Acted Too Slowly on Inflation

Some Federal Reserve officials have begun to acknowledge that they were too slow to respond to rapid inflation last year, a delay that is forcing them to constrain the economy more abruptly now — and one that could hold lessons for the policy path ahead. Inflation began to accelerate last spring, but Fed policymakers and […]

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Fed Officials Are on the Defensive as High Inflation Lingers

Christopher Waller, a governor at the Federal Reserve, faced an uncomfortable task on Friday night: He delivered remarks at a conference packed with leading academic economists titled, suggestively, “How Monetary Policy Got Behind the Curve and How to Get Back.” Fed officials — who set America’s monetary policy — have found themselves on the defensive […]

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The Stock and Bond Markets Don’t Yet Know How to Cope With the Fed

On Wednesday, the S&P 500 stock index jumped 3 percent, as though all was right with the world. On Thursday, stocks collapsed, with the tech-heavy Nasdaq index plunging 5 percent as though the end of times was in sight. Things on Friday aren’t much clearer: Stocks swung back and forth in early trading. If you […]

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Stocks Slide, Erasing Wednesday’s Gains

Stocks dove on Thursday, erasing gains from their best day since 2020 in a swing that highlights Wall Street’s heightened anxiety over what the Federal Reserve’s campaign to slow inflation will mean for the economy. The S&P 500 fell 3.6 percent, after surging 3 percent on Wednesday. The Nasdaq composite slid 5 percent, its biggest […]

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Fed Raises Interest Rate Half a Percentage Point, Largest Increase Since 2000

The Federal Reserve raised interest rates by a half percentage point and announced a plan to shrink its massive bond holdings, decisive measures aimed at tamping down the fastest inflation in four decades. Wednesday’s move marked the Fed’s largest interest rate increase since 2000, and Chair Jerome H. Powell signaled at a news conference following […]

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The Fed Wants to Fight Inflation Without a Recession. Is It Too Late?

The Federal Reserve is poised to set out a path to rapidly withdraw support from the economy at its meeting on Wednesday — and while it hopes it can contain inflation without causing a recession, that is far from guaranteed. Whether the central bank can gently land the economy is likely to serve as a […]

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The Era of Cheap and Plenty May Be Ending

Ford Motor, which has grappled with pandemic supply chain issues, is working on making its own batteries — including in America. “In the medium and long term, securing raw materials, processing, precursor and refinement and setting up battery production here in the U.S. and around the world is a big work statement for us,” Jim […]

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The Courage Required to Confront Inflation

Jerome Powell, the chair of the Federal Reserve, has often expressed admiration for the resolve exhibited by one of his predecessors, Paul Volcker, who was willing to crash the economy in the early 1980s to drive down inflation. Inflation in the United States is now higher than at any time since Mr. Volcker’s recession, and […]

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Stocks Tumble as Jitters over Interest Rates Persist

Stocks slid on Friday, with the S&P 500 heading for its third consecutive weekly decline, a drop that came as Wall Street quickly changed its expectation for how aggressively the Federal Reserve will raise interest rates. The S&P 500 fell 2.2 percent in afternoon trading, a loss that would be its worst daily decline since […]

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To Stop Inflation, Will We Need to Engineer a Recession?

How a soft landing could happen As The Times’s Ben Casselman reports, a majority of economic forecasters still believe that a recession remains unlikely in the near term. For one thing, there are signs that some goods, like used cars, are already coming down in price. The decline may owe to a delayed buildup of […]

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The Fed Bets on a ‘Soft Landing,’ but Recession Risk Looms

Jerome H. Powell, the Federal Reserve chair, emphasized this week that the central bank he leads could succeed in its quest to tame rapid inflation without causing unemployment to rise or setting off a recession. But he also acknowledged that such a benign outcome is not certain. “The historical record provides some grounds for optimism,” […]

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Bond Market Unsettled by Inflation Worries

From a longer vantage, the August 2020 trough may just possibly have marked the end of a 40-year bull market in bonds. The rock-bottom 10-year yield that summer was the culmination of a decline from a peak of more than 15.8 percent in 1981. That peak occurred, not coincidentally, when Paul Volcker was the chairman […]

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Federal Reserve Walks a Tightrope Between Inflation and Recession

In an interview, James D. Hamilton, professor of economics at the University of California, San Diego, and a leading expert on the economic effects of oil shocks, said they had “made major contributions to recessions over many decades.” At current oil price and supply levels, the effects of the Russian war “are fairly manageable for […]

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Federal Reserve Walks a Tightrope Between Inflation and Recession

In an interview, James D. Hamilton, professor of economics at the University of California, San Diego, and a leading expert on the economic effects of oil shocks, said they had “made major contributions to recessions over many decades.” At current oil price and supply levels, the effects of the Russian war “are fairly manageable for […]

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Inflation Lessons From the 1970s

Jeanna Smialek contributed reporting. The Daily is made by Lisa Tobin, Rachel Quester, Lynsea Garrison, Clare Toeniskoetter, Paige Cowett, Michael Simon Johnson, Brad Fisher, Larissa Anderson, Chris Wood, Jessica Cheung, Stella Tan, Alexandra Leigh Young, Lisa Chow, Eric Krupke, Marc Georges, Luke Vander Ploeg, M.J. Davis Lin, Dan Powell, Dave Shaw, Sydney Harper, Robert Jimison, […]

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Why Is the Fed Raising Interest Rates?

Prices for groceries, couches and rent are all climbing rapidly, and Federal Reserve officials have been warily eyeing that trend. On Wednesday, they are expected to take their biggest step yet toward counteracting it. Central bank officials — who have been signaling for months that they are preparing to pull back economic support — are […]

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As Fed Prepares to Raise Rates, Global Economy Sinks Deeper Into Turmoil 

Jason Furman, an economist at Harvard University, said many forecasters had been doing what investors sometimes refer to as “pricing to perfection”: assuming that everything is going to go well, even if that is not the most likely outcome. “You can look at the individual items: There’s been a lot of, what if inflation in […]

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When Inflation Meets a War

Now, as the Fed chair, Jerome Powell, acknowledged this month, “We’re going to see upward pressure on inflation at least for a while.” That pressure has led economists to begin reducing their growth forecasts, creating the Fed’s dilemma. If the Fed leans toward taming inflation, we face higher interest rates, slower growth and even recession. […]

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Could Inflation Prompt Powell to Act Like Volcker?

The war in Ukraine threatens to keep costs elevated for longer. Gas prices have already surged, lifting headline inflation as consumers pay more at the pump. Disruptions to supply chains — and shortages in Russian and Ukrainian exports like neon, palladium and wheat — could curtail car and food production and the transport of goods, […]

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Inflation Rises to 7.9 Percent for February 2022

Prices climbed at the fastest pace in decades in the month leading up to the war in Ukraine, underlining the high stakes facing the United States — along with many developed economies — as the conflict promises to drive costs higher. The Consumer Price Index rose by 7.9 percent through February, the fastest pace of […]

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Powell Says Rates Are Headed Higher, Even as Ukraine Poses Uncertainty

Jerome H. Powell, the Federal Reserve chair, told lawmakers on Wednesday that the central bank is poised to lift interest rates at its meeting this month as it tries to cool down high inflation — saying that while Russia’s invasion of Ukraine is ramping up economic uncertainty, it isn’t yet shaking the Fed off its […]

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Federal Reserve Rolls Out Tough Trading Restrictions After Scandal

The Federal Reserve on Friday adopted a new set of ethics rules meant to prevent questionable financial market trading activity by top officials, a sweeping response to a scandal that has rocked the central bank since late last year. Fed officials traded in individual stocks, real estate securities and stock funds in 2020, a year […]

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January Fed Minutes Show Concern About Inflation’s Spread

Officials at the Federal Reserve expressed concern about inflation at their meeting in January, in particular that it had spread beyond pandemic-affected sectors into other areas, and agreed it would be warranted to begin scaling back their support for the economy faster than they previously had anticipated, minutes of the meeting released Wednesday showed. Fed […]

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Senate Republicans Stall Critical Vote on Fed Nominees

President Biden’s plans to remake the Federal Reserve by nominating five of its seven governors hit a roadblock on Tuesday as Republicans on the Senate committee that sits at the center of the confirmation process delayed a vote on the picks. Mr. Biden has renominated Jerome H. Powell as Fed chair and has tapped Lael […]

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CPI Inflation Climbed 7.5 Percent in January, the Fastest Rise Since 1982

“My concern is that they overdo it — being too sensitive to wage growth,” Ryan Sweet, who leads real-time economics at Moody’s Analytics, said before the report. “This is not going to be easy.” Much like policymakers, companies have expressed uncertainty about when today’s rapid price gains will fade. “I wish I could forecast when […]

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Fed nominees commit to not taking part in finance’s revolving door.

Three of President Biden’s nominees to the Federal Reserve committed to lawmakers that, if confirmed to their posts, they would not work in financial services for four years after leaving the Fed. The pledge comes amid growing concern about the revolving door between Washington and Wall Street. The three potential Fed governors in question — […]

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Fed Signals Rate Increase in March, Citing Inflation and Strong Job Market

Federal Reserve officials signaled on Wednesday that they were on track to raise interest rates in March, given that inflation has been running far above policymakers’ target and that labor market data suggests employees are in short supply. Central bankers left rates unchanged at near-zero — where they have been set since March 2020 — […]

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Jerome Powell is taking questions. Follow the market reaction.

The Federal Reserve on Wednesday said it would “soon” be appropriate to raise interest rates, as inflation runs above policymakers’ preferred target and the job market strengthens. Although central bankers left rates unchanged at near-zero — where they have been set since March 2020 — the revised statement after their two-day policy meeting laid the […]

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