Surging inflation fears sent markets tumbling and Fed officials scrambling
[ad_1] A sign advertising units for rent is displayed outside of a Manhattan building on April 11, 2024 in New York City. Spencer Platt | Getty Images The early data is in for the path of inflation during the first three months of 2024, and the news so far is, well, not good. Pick your […]
The Fed and Political Independence: It’s Complicated
[ad_1] The pressroom podium for the Federal Reserve awaits leadership. Writing in the Wall Street Journal, Joseph Sternberg wonders whether the Federal Reserve is too insulated from politics. The Fed clearly failed by allowing the worst inflation we’ve seen in 40 years. Now, however, there are worries it’s veering too far the other way: “the […]
Key Fed inflation gauge rose 2.8% annually as expected
[ad_1] Inflation rose in line with expectations in February, likely keeping the Federal Reserve on hold before it can start considering interest rate cuts, according to a measure the central bank considers its more important barometer. The personal consumption expenditures price index excluding food and energy increased 2.8% on a 12-month basis and was up […]
Former Fed Vice Chair Clarida sees possibility of fewer rate cuts than expected this year
[ad_1] Stubbornly high inflation could push the Federal Reserve into a more cautious stance this year regarding interest rate cuts, the central bank’s former vice chair said Friday. Richard Clarida, who served as Fed governor until January 2022 and is now a global economic advisor at asset management giant Pimco, said his former colleagues need […]
Long-term inflation expectations rise, spelling possible trouble for the Fed, survey shows
[ad_1] Customers shop at a Costco store on August 31, 2023 in Novato, California. Justin Sullivan | Getty Images News | Getty Images Consumers increasingly doubt the Federal Reserve can achieve its inflation goals anytime soon, according to a survey Monday from the New York Federal Reserve. While the outlook over the next year was […]
Fed Admits It Was Wrong – Kind Of
[ad_1] Federal Reserve Chair Jerome Powell responds to reporters at a press conference. July 2023. During the pandemic recovery, inflation reached the highest rates in 40 years, largely driven by the Federal Reserve’s excessive monetary policy. The Fed got “behind the curve” by not raising its interest rate target fast enough, even once it became […]
Credit card delinquencies surged in 2023, indicating ‘financial stress,’ New York Fed says
[ad_1] D3sign | Moment | Getty Images Credit card delinquencies surged more than 50% in 2023 as total consumer debt swelled to $17.5 trillion, the New York Federal Reserve reported Tuesday. Debt that has transitioned into “serious delinquency,” or 90 days or more past due, increased across multiple categories during the year, but none more […]
The Fed Says Its Record Losses Don’t Matter
[ad_1] The US Department of the Treasury, Washington DC. The Federal Reserve recently disclosed its preliminary income and expenses for 2023, revealing an unprecedented $114.3 billion in operational losses. Somewhat surprisingly, Fed officials seem unconcerned about this financial performance. Their lack of concern may be even more worrisome than the losses themselves. Like any financial […]
Time for the Fed to Ease Up
[ad_1] Eagle on the facade of the Federal Reserve Building in Washington, DC After a scare with January’s Consumer Price Index (CPI) release, economists and market watchers are breathing a sigh of relief following the latest Personal Consumption Expenditures Price Index (PCEPI) data. Both headline and core inflation (excluding food and energy prices) inflation were […]
Two important events this week could determine the future of Fed rate policy
[ad_1] Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., January 19, 2024. Brendan Mcdermid | Reuters Markets have become less convinced that the Federal Reserve is ready to press the button on interest rate cuts, an issue that cuts at the heart of where the economy […]