Fed’s Powell: More rate hikes likely this year to fight still-high inflation
The contrast between the Fed’s stated concern over still-high inflation and its decision to skip a rate hike has heightened uncertainty about its next moves.
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Powell to face hearings at time of rising uncertainty over interest rates
The two days of hearings before Congress will likely focus on the question that consumed the central bank last week: How far and how fast will the Fed raise its key interest rate from here?
Fed Chair Powell sees progress on inflation, though not enough
Chair Jerome Powell offered a nuanced view Wednesday of how the Federal Reserve intends to address its core challenge at a time when inflation is both way below its peak but still well above the central bank’s 2% target.
Fed keeps rates unchanged for first time in 15 months, but signals more hikes
The Fed’s move to leave its benchmark rate at about 5.1%, its highest level in 16 years, suggests that it believes the much higher borrowing rates it’s engineered have made some progress in taming inflation.
Federal Reserve is likely to skip rate hike this month, yet signal more to come
The Federal Reserve, having raised interest rates at the fastest pace in four decades, is poised Wednesday to leave rates alone for the first time in 15 months to allow time to gauge the impact of its aggressive drive to tame inflation.
People spending less on hotels, flights, restaurants and more
An emerging pullback should be welcome news for the Federal Reserve, which has been taking aggressive steps for more than a year to slow the economy enough to bring down inflation.
‘Skip’ or ‘pause’? Fed unlikely to raise rates next week, but maybe next month
When the Federal Reserve meets next week, it is widely expected to leave interest rates alone—after 10 straight meetings in which it has jacked up its key rate to fight inflation. But that doesn’t mean its done with hikes.
U.S. job openings rise unexpectedly to highest mark since January
The resilience of the American labor market continues to complicate the Federal Reserve’s efforts to fight inflation.
Federal Reserve officials split over what to do next to fight inflation
The stubbornness of high inflation is dividing the Federal Reserve over how to manage interest rates, leaving the outlook for the Fed’s policies cloudier than at any time since it unleashed a streak of 10 straight rate hikes.
U.S. adds a solid 253,000 jobs despite Fed’s rate hikes
April’s hiring gain compares with 165,000 in March and 248,000 in February and is still at a level considered vigorous by historical standards.
Fed raises key rate, but hints it might pause amid bank turmoil
The Federal Reserve said it will consider a range of factors in “determining the extent” to which future hikes might be needed.
Fed set to raise rates yet again. What comes next is unclear.
Another quarter-point rate increase on Wednesday would leave the Fed’s key rate at 5.1%—a 16-year high and a full 5 percentage points higher than in March 2022.
New instant payment network could help smaller banks compete with the big guys
With help from a national pilot group that includes three Indiana-based banks, the Federal Reserve will soon launch the service, called FedNow.
Top Fed official sees need for more interest rate increases
Christopher Waller, a member of the Federal Reserve’s governing board, said there has been little progress on inflation for more than a year.
U.S. adds 236,000 jobs; unemployment rate sinks to 3.5%
America’s employers added a solid 236,000 jobs in March, suggesting that the economy remains on solid footing despite the nine interest rate hikes the Federal Reserve has imposed over the past year in its drive to tame inflation.
Fed’s unwanted ally in bid to tame inflation: Credit crunch
Signs of a possible credit crunch in the United States had begun to emerge even before Silicon Valley Bank collapsed on March 10, raising worries about the stability of the financial system.
Fed raises key rate by quarter-point despite bank turmoil
The Fed warned that the financial upheaval stemming from the collapse of two major banks is “likely to result in tighter credit conditions” and “weigh on economic activity, hiring and inflation.”
Fed facing blurrier outlook as it meets to weigh rate hike
The Federal Reserve will have to decide whether to extend its year-long streak of rate hikes despite the jitters roiling the financial industry.
Inflation eases but stays high, putting Fed in tough spot
Even though prices are rising much faster than the Fed wants, some economists expect the central bank to suspend its year-long streak of interest rate hikes when it meets next week.
Fed’s battle plan for inflation shredded by financial turmoil
The worry is the collapse of SVB and Signature Bank are just the start of a longer list of casualties from the Fed’s shift to the highest rates since policymakers began slashing borrowing costs in 2007.