Fed’s Powell says one or two more rate hikes might be needed in 2023
Speaking on Capitol Hill for a second day, Federal Reserve Chair Jerome Powell said returning U.S. inflation to 2% is crucial to support the long-term health of the U.S. economy.
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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.
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.
Inflation eased further in May, but remains above normal levels
Housing costs continue to be a major driver of overall inflation. Rent rose 0.5 percent in May over the month before, only a minor improvement from a 0.6 percent increase in April. Rental costs are still up 8.7 percent over last year.
‘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.
Rising interest rates pinch small-business borrowers
The average prime rate, or the rate banks set as a reference for customer loans, was 4%. The prime rate has more than doubled since then, hitting 8.25% in May.
Fed likely to skip interest-rate hike in June, officials signal
Leading Federal Reserve officials are sending out stronger signals that they will forego an increase at the central bank’s next meeting, though they indicate hikes could resume later this year.
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. prices remain high, showing inflation pressures persist
The nation’s inflation rate has steadily cooled since peaking at 9.1% last June but remains far above the Federal Reserve’s 2% target rate.
Banks report tougher credit standards in wake of failures
A Federal Reserve report shows that banks raised their lending standards for business and consumer loans in the aftermath of three large bank failures. It’s a trend that could slow the economy in coming months.
New cars, once part of American dream, now out of reach for many
The average price of a new vehicle in the United States has risen 30 percent over the past three years, according to Kelley Blue Book, pricing more Americans out of the new car market.
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.
Banks paying savers again after years of low rates
Banks were initially slow to raise their payouts as the Fed raised rates because they were awash in deposits. But those deposits have shrunk over the past year because inflation forced consumers and businesses to dip into their savings.
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.