My thought is that the factors that supported the trend – a steady march down in the saving rate to zero and a steady march up in household debt, coupled with monetary policy that had room to go from 15% short rates to zero over nearly three decades, are at an end. Even if you be...
In short, to accept a September tapering as a data dependent decision, you need to accept that the data threshold is relatively low and differs from the threshold for interest rate policy. They are two separate policies. Consequently, we don’t need to see substantially better data to forestal...
watch now VIDEO01:28 Fed hikes rates by another 75 bps The Federal Reserve raised rates by 75 basis points, or 0.75 percentage point, as expected. The increase pushes the fed funds rate to its highest level since January 2008. — Jeff Cox Wed, Nov 2 20221:47 PM EDT Investors...
So despite the record high number in July, that growth rate is actually the lowest month over month growth rate that we’ve seen in about about three years, a little over three years, 3.25 years. So it is clear that the employment markets are slowing down despite some of the very positi...
Policymakers, though, have been more circumspect about their intentions, cautioning that they see no need to move quickly as they watch the data unfold. Committee members in December indicated a likelihood of three quarter-percentage point rate cuts this year, less ambitious than the six that fut...
Edward Harrison
A pause also makes sense because of signs that the economy is cooling; because there are considerable strains in the financial system due to sharp rate hikes; and because the broad money supply is now contracting, Lachman said. The Fed has pushed interest rates to their highest level in 16...
Fed interest-rate cuts might not come anytime soon, two top officials say Feb. 3, 2025 at 2:07 p.m. ETby Greg Robb Inflation will slow this year, allowing Fed to cut rates further, says former St. Louis Fed chief Feb. 3, 2025 at 6:01 a.m. ETby Greg Robb ...
The Fed usually lifts interest rates by a quarter percentage point, and the newly announced half-percentage-point rate hike, along with an imminent move to shrink its 9 trillion-dollar balance sheet, indicates the urgency to get surging inflation under control. ...
Since the March policy meeting, a flurry of comments from Fed officials indicated that the urgency for rate hikes is growing, and the central bank is prepared to take more aggressive actions going forward. Powell said in late March that the central bank will, if needed, move "more aggressive...