Federal Reserve cuts key rate but signals higher bar for future reductions
Wednesday’s cut reduced the Fed’s key interest rate by a quarter-point, to about 3.6%, the lowest it has been in nearly three years.
Interest Rates
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Powell: Fed still sees rate cuts this year; election timing won’t affect decision
The recent pickup in inflation has led some economists to postpone their projections for when the Federal Reserve will begin cutting interest rates.
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U.S. economy grew 2.1% in 2022, but recession fears linger
The latest figures point to a strong but slowing economy that has been tempered by the Federal Reserve’s aggressive efforts to control inflation.
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Homebuilding in central Indiana continues to crater as interest rates rise
Builders in the nine-county Indianapolis area filed only 457 single-family building permits in October, down a whopping 46% from 845 in the same month of 2021.
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Articles
Fed likely to lower borrowing costs this week, but follow-up rate cuts face longer odds
The Federal Reserve faces an unusually contentious meeting this week that will test Chair Jerome Powell’s ability to corral the necessary support for a third straight interest rate cut.
Fed’s preferred inflation gauge little changed in September as spending weakened
Core inflation was muted in September and will bolster the case for a cut to the Federal Reserve’s key interest rate at its next meeting.
Sharp disagreements over economy threaten Federal Reserve interest rate cut
The differences have been exacerbated by the government shutdown’s interruption of economic data, a particular challenge for a Fed that Chair Jerome Powell has often described as “data dependent.”
Federal Reserve cuts key rate, yet Powell says future reductions are not locked in
Chair Jerome Powell said in a news conference that another rate cut in December was “not a foregone conclusion.”
Fed minutes: Most officials supported further rate cuts as worries about jobs rose
The minutes provide insight into how the Fed’s policymakers were thinking last month about inflation, interest rates, and hiring.
Powell signals Federal Reserve to move slowly on interest rate cuts
Jerome Powell’s approach is in sharp contrast to some members of the Fed’s rate-setting committee who are pushing for faster cuts.
Federal Reserve cuts key rate by quarter-point, signals two more cuts this year
The move is the Fed’s first cut since December and lowered its short-term rate to about 4.1%, down from 4.3%. The central bank’s focus has shifted quickly from inflation to jobs, as hiring has ground nearly to a halt in recent months
Fed faces economic uncertainty, political pressure as it decides whether to cut rates
At this week’s Federal Reserve meeting, the decision it will make on interest rates—usually the main event—is just one of the key unknowns to be resolved when officials gather Tuesday and Wednesday.
Average rate on a 30-year mortgage falls to lowest level in nearly a year
Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also fell.
United States supply chain prices unexpectedly fell in August
The drop in producer prices makes it even more likely that the Federal Reserve will cut its benchmark interest rate next week for the first time this year.
Powell signals Fed may cut rates soon even as inflation risks remain
Federal Reserve Chair Jerome Powell opened the door ever so slightly to lowering a key interest rate in the coming months but suggested the central bank will proceed cautiously as it continues to evaluate the impact of tariffs and other policies on the economy.
Average rate on a 30-year mortgage drops to lowest level since October
Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also fell.
Homeowners turn to cash-out refinancing to take advantage of big gains in home equity
Cash-out refinances, in which homeowners take out a loan for more than they owe on their mortgage and pockets the difference, accounted for roughly 60% of all home loan refis in the second quarter.
A top Federal Reserve official says dour jobs data backs case for 3 rate cuts
The jobs report that arrived last week, only a couple of days after the Fed voted on interest rates, showed that employers hired far fewer workers last month than economists expected.
Federal Reserve leaves interest rates unchanged even as Trump demands cuts
The choice to hold off on a rate cut will almost certainly result in further conflict between the Fed and White House, as Trump has repeatedly demanded that the central bank reduce borrowing costs.
Fed likely to stand pat on rates this week, deepening gulf between Powell and Trump
President Trump argues that the Federal Reserve in general and Chair Jerome Powell in particular are costing U.S. taxpayers hundreds of billions of dollars in interest payments by not reducing borrowing costs.
UPDATE: Trump says he’s ‘highly unlikely’ to fire Fed’s Powell after floating idea in private
President Trump made the statement less than 24 hours after suggesting in a private meeting that he was leaning in favor of dismissing the head of the nation’s central bank.
Powell says Fed rate cut on hold even as Trump demands cuts
The Federal Reserve will continue to wait and see how the economy evolves before deciding whether to reduce its key interest rate, Chair Jerome Powell said Tuesday.
Federal Reserve’s Bowman says rate cut should be on table in July
Michelle Bowman, who was appointed to the Fed’s board of governors by Donald Trump in 2018, is the second high-profile official to express support for a potential July cut in as many days.