Warsh Reaffirms ‘Will Deliver Price Stability;’ Cagey On Fed’s Next Move
– Won’t Prejudge Outcome Of Late October FOMC Meeting – ‘Discouraging’ Inflation Reports Change Some Attitudes Toward Tightening By Steven K. Beckner (MaceNews) – Federal Reserve Chairman Kevin Warsh reaffirmed the Fed’s commitment to “deliver price stability” late Thursday in Bangkok, but refused to give any guidance as to what further actions he and his […]
Fed Officials Moving Toward Higher Interest Rates but Not Necessarily Soon
– Waller: FOMC Has ‘Flexibility’; No Need To Hike at Consecutive Meetings – Musalem: Rates Need to Go Higher to Curb Inflation ‘In Timely Manner’ By Steven K. Beckner (MaceNews) – Federal Reserve officials have continued this week to lean decidedly toward further tightening of U.S. monetary policy but have given themselves leeway as to […]
UPDATE – Fed Officials Stay Focused On ‘Too High’ Inflation Despite Encouraging PCE Data
– Jefferson: Inflation Risk To Upside; Worried People Will Stop Believing Fed 2% Goal – Collins: Some ‘Promising’ Inflation Signs; Others Less Promising; Still Upside Risks – Kashkari Downplays PCE Report As Just “A Snapshot’; Foresees More Rate Hikes – Cook: Inflation ‘Too High For Too Long’; Labor Market Can Handle Tightening By Steven K. […]
NABE Survey Shows Shift to Expectations of Fed Tightening Among Business Economists
By Steven K. Beckner (MaceNews) – The mood of business economists has shifted dramatically, swinging from hope for monetary easing to expectations of more monetary tightening, according to a survey by the National Association for Business Economics released Monday. The NABE’s semi-annual survey of its 151 members shows a substantial proportion of them considering both […]
Fed Officials Forewarn More ‘Pain’ For the Economy After Initial Rate Hike
– Goolsbee: Getting Inflation Down to 2% Target ‘Won’t Be Painless’ – Barkin: Inflation ‘Troublemaker’ Will Need More Than One ‘Talking-To’ – Paulson: ‘Recalibration’ Brought FFR ‘Closer’ But More Hikes Likely Needed – Williams: ‘Reasonable’ To Expect More Fed Tightening – Collins: Upside Inflation Risks Worsening; Need ‘More Restrictive’ Stance By Steven K. Beckner (MaceNews) […]
FOMC Hikes Funds Rate 25 BP For First Time In 3 Years To 3.75-4.0% Range
– Warsh: Strong Economy, High Inflation Made FOMC ‘Remove Dose of Accommodation’ – Warsh: Rate Hike Should Ensure ‘Timelier Return’ to Fed’s 2% Inflation Target – Warsh Refuses to ‘Prejudge’ Future FOMC Actions; No ‘Forward Guidance’ – FOMC Participants Project Funds Rate At 4.1% end ‘26; 4.1% end ‘27; 3.9% End ‘28 – PCE Inflation […]
FOMC: Raises Fed Funds Rate By Quarter Point As Expected; Dots Suggest One More Rate Hike
WASHINGTON (MaceNews) – The following is the extremely brief policy statement by the Federal Open Market Committee Wednesday afternoon: The Federal Open Market Committee approved the following statement for release by a 12 – 0 vote: The Committee decided to raise the target range for the federal funds rate by 1/4 percentage pointto 3-3/4to 4 […]
Fed Officials Willing to Raise Rates, But Only If Convinced Inflation Not Receding
– Key Inflation, Other Data Eagerly Awaited Before Some Make Up Their Minds By Steven K. Beckner (MaceNews) – With barely two weeks to go before Federal Reserve policymakers gather to take fresh stock of the economy and reconsider their short-term interest rate settings, Fed officials are letting it be known they are willing to […]
Fed’s Warsh Issues Strong Warnings About Inflation at Fed’s Jackson Hole Symposium
– Warns Expectations Could Become Unanchored if Inflation Stays Elevated – Reaffirms that the Fed’s Job Is To ‘Deliver Stable Prices’ – Sees Labor Markets, Economy Performing Strongly Without Financial Restraint – Says Inflation ‘Has Not Meaningfully improved’ – Again Rejects ‘Forward Guidance’ Or Revealing Fed ‘Reaction Function’ By Steven K. Beckner (MaceNews) – Although […]
Fed’s Collins: ‘Appropriate to Tighten Policy Soon’ If Inflation Doesn’t Recede
By Steven K. Beckner (MaceNews) – Boston Federal Reserve Bank President Susan Collins is willing to support an increase in short-term interest rates if forthcoming reports on inflation don’t show it coming down as she hopes, comments released by the bank Tuesday reveal. Without evidence of moderating inflation, she believes “it will be appropriate to […]