The Federal Reserve will push rates higher than previously expected and keep them there for an extended period, Chair Jerome Powell said Wednesday, and economic data reported Thursday suggests the Fed will have little reason to pull back soon.
Two Federal Reserve officials said Monday that they favor raising the Fed’s key rate to roughly 5 percent or more and keeping it at its peak through next year – longer than many on Wall Street have expected.
Most Federal Reserve officials at their last meeting favored reducing the size of their interest rate hikes “soon” – just before raising their benchmark rate by a substantial three-quarters of a point for a fourth straight time.
The solid U.S. jobs report for October underscores why the Federal Reserve needs to raise interest rates higher than it had previously forecast in order to control inflation, Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, said Friday.
The Federal Reserve pumped up its benchmark interest rate Wednesday by three-quarters of a point for a fourth straight time to fight high inflation but hinted that it could soon reduce the size of its rate hikes.
Looming over the Federal Reserve meeting that ends Wednesday is a question of intense interest: Just how high will the Fed’s inflation-fighters raise interest rates – and might they slow their rate hikes as soon as next month?
Fed officials will likely engage in a fraught debate over whether it may soon be time to slow its rate hikes, which are intended to cool the worst inflation in four decades but are also raising the risk of a recession.
A “larger number” of industrial real estate acquisition and leasing deals are falling through in New England, according to Federal Reserve officials.
Federal Reserve officials at their last meeting stressed their commitment to taming “unacceptably high” inflation before announcing that they were raising their benchmark interest rate by a substantial three-quarters of a point for a third straight time and signaling more large rate hikes ahead.
What keeps driving inflation so high? The answer, it seems, is nearly everything.
The report is potentially hopeful news that may mean the Federal Reserve’s drive to cool the job market and ease inflation is starting to make progress.
Fannie Mae’s top economic minds issued a depressing prognosis for the nation’s housing sector as mortgage rates took another big jump and Fed Chair Jerome Powell said housing needs “a correction.”
Intensifying its fight against chronically high inflation, the Federal Reserve raised its key interest rate Wednesday by a substantial three-quarters of a point for a third straight time, an aggressive pace that is heightening the risk of an eventual recession.
On Wednesday, Americans may get a better sense of how much could be in store, with economists predicting the Fed’s main interest rate could rise another full percentage point by year’s end.
The Biden administration is moving one step closer to developing a central bank digital currency, known as the digital dollar, saying it would help reinforce the U.S. role as a leader in the world financial system.
The last time the Federal Reserve faced inflation this high, in the early 1980s, it jacked up interest rates to double-digit levels – and in the process caused a deep recession. Fed Chair Jerome Powell doesn’t think that will be necessary this time.
The Federal Reserve will need to continue lifting its short-term interest rate to a level that restricts economic growth and keep it there for an extended period, a top Fed official said Wednesday.
Falling gas prices gave Americans a slight break from the pain of high inflation last month, though the surge in overall prices slowed only modestly from the four-decade high it reached in June.
Defying anxiety about a possible recession and raging inflation, America’s employers added a stunning 528,000 jobs last month, restoring all the jobs lost in the coronavirus recession.
Bill Nelson has experienced the workings of the Federal Reserve from both sides of the street, including a top position advising the central bank on interest rates.