Powell Cites ‘Significant Downside Risks’ To Jobs; Puts Less Emphasis On Inflation
– Can’t Ease Too Quickly, But Easing Too Slowly Would Mean ‘Painful” Job Losses By Steven K. Beckner (MaceNews) – Federal Reserve Chairman Jerome Powell avoided giving an overt signal about what the Fed will do with interest rates later this month, but clearly leaned toward greater concern about a softening labor market than about […]
Fed Officials Wrestle with Appropriate Policy Path amid Data Fog
By Steven K. Beckner (MaceNews) – As they move closer to their penultimate monetary policy meeting of the year later this month, Federal Reserve policymakers continue to give mixed signals on the path of interest rates. While there have been overt calls for additional rate cuts, and while some officials have indicated an openness to […]
NY Fed’s Williams: FOMC Has ‘Balancing Act’ Between Inflation, Employment
– Monetary Policy Still Restrictive; To Make Meeting-by-Meeting Judgment on Risks – Employment Risks Up; Inflation Pressure Lessening; Tariffs Not As Bad As Feared – Other Fed Officials More Hesitant To Cut Funds Rate Furthermore By Steven K. Beckner (MaceNews) – After cutting interest rates mid-month to guard against “undue” weakness in the labor market […]
Fed Officials Continue to Diverge on Where Funds Rate Should Go in Future
By Steven K. Beckner (MaceNews) – Federal Reserve officials have expressed general support for lower interest rates this week but have diverged on how much further monetary easing might be warranted. Some officials have made clear they want additional cuts in the key federal funds rate after the Fed’s rate-setting Federal Open Market Committee voted […]
FOMC Cuts Fed Funds Rate 25 Basis Points; Further Rate Cuts Projected
– Powell: Increased Downside Labor Risks Motivated FOMC to ‘Move Toward Neutral’ – SEP Projects 3.6% Funds Rate End ‘25; 3.4% End ‘26; 3.1% End ‘27 By Steven K. Beckner (MaceNews) – After holding its interest rate settings steady for nine months, despite growing pressure from President Trump, the Federal Reserve finally lowered them Wednesday, […]
TRANSCRIPT: Fed’s Powell Says Quarter-Point Cut ‘Risk Management’ Rather Than Reaction to Actual Jobs Deterioriation
WASHINGTON (MaceNews) – The following is a transcript of Federal Reserve Chair Jerome Powell’s post-FOMC news conference Wednesday: Recent indicators suggest that growth of economic activity has moderated. GEP rose at a pace of around one and a half percent in the first half of the year, down from 2.5 percent last year. The moderation […]
FOMC POLICY STATEMENT – As expected, with quarter-point rate cut followed by dot-plot expectations for two more this year
WASHINGTON (MaceNews) – The Federal Open Market Committee’s Wednesday policy statement: Recent indicators suggest that growth of economic activity moderated in the first half of the year. Job gains have slowed, and the unemployment rate has edged up but remains low. Inflation has moved up and remains somewhat elevated. The Committee seeks to achieve maximum […]
BofA Global Research Fund Manager Survey: Global Growth Optimism Jumps in September On Fed Rate Cut Hopes and Waning Trade War Jitters
– Fed Independence and US Dollar Debasement Now Number Two “Tail Risk” – 47% Of Portfolio Managers Look for 4 or more Fed Rate Cuts In Coming Year By Vicki Schmelzer NEW YORK (MaceNews) – Global growth optimism jumped in September, fueled by Fed rate cut expectations and waning trade war jitters, according to Bank […]
NY Fed’s Williams, Other Fed Officials, Hint at Growing Likelihood of Sept. 17 Rate Cut
– Williams Puts More Weight on Downside Job Risks than Upside Inflation Risks – Williams: Must Move Funds Rate Toward Neutral, But Gives No Time Frame By Steven K. Beckner (MaceNews) – By putting more emphasis on risks to full employment than on inflation threats, New York Federal Reserve Bank President John Williams seemed to […]
Fed’s Powell in Jackson Hole Hints at Coming Federal Funds Rate Adjustment
– Says FOMC Can Proceed ‘Carefully’ But Cites Greater Job Risks – Announces Significant Shifts in FOMC’s Monetary Policy Framework By Steven K. Beckner (MaceNews) – Federal Reserve Chair Jerome Powell hinted Friday that the Federal Open Market Committee could resume lowering short-term interest rates when the Fed’s rate-setting body meets in mid-September. Powell made […]