An unexpected job surge confounds the Fed’s economic models

February 3, 2023 Leave a comment

The past year’s consistently robust hiring gains have defied the fastest increase in the Fed’s benchmark interest rate in four decades.

Tagged with: federal reserve inflation

Fed announces smaller rate hike, signals more ahead

February 1, 2023 Leave a comment

Federal Reserve Chairman Jerome Powell testifies before the Senate Banking Committee hearing March 3, 2022 on Capitol Hill in Washington. (Tom Williams, Pool via AP)

The Federal Reserve extended its fight against high inflation by raising its key interest rate for the eighth time since March.

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Federal Reserve, markets in standoff on interest rate hikes

January 24, 2023 Leave a comment

Investors still don’t seem to fully believe what the Fed warns is coming next: higher rates through the end of the year.

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Fed official backs smaller hikes, saying inflation easing

January 19, 2023 Comments Off on Fed official backs smaller hikes, saying inflation easing

Federal Reserve Board Vice Chair Lael Brainard speaks during a conversation with leaders from organizations that include nonprofits, small businesses, manufacturing, supply chain management, the hospitality industry, and the housing and education sectors at the Federal Reserve building in Washington on Sept. 23, 2022. (AP Photo/Manuel Balce Ceneta, File)

A Federal Reserve vice chair said recent reports show high inflation is easing and suggested it was possible that price acceleration may cool without causing significant job losses.

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Fed official: Rate hikes have begun to quell inflation

January 18, 2023 Comments Off on Fed official: Rate hikes have begun to quell inflation

Growing evidence that high inflation is finally easing shows that the Federal Reserve's sharp interest rate hikes are working as intended, a key Fed policymaker said.

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States banking big bucks as Fed attempts to fight inflation

December 28, 2022 Comments Off on States banking big bucks as Fed attempts to fight inflation

Missouri Treasurer Scott Fitzpatrick displays a $1 bill signed by the former treasurer of the United States on Dec. 15, 2022, at his office in Jefferson City, Missouri. Due partly to rising interest rates, Missouri had earned more than $116 million on investments through the first five months of its current fiscal year — nearly double the amount earned the entire previous year. (AP Photo/David A. Lieb)

State governments emerging from the coronavirus pandemic built historic cash surpluses, and many are banking millions off those surpluses as the Fed fights inflation with higher interest rates.

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Recession a growing fear as Fed plans to keep rates high

December 16, 2022 Comments Off on Recession a growing fear as Fed plans to keep rates high

After scaling 40-year highs, inflation in the United States has been slowly easing since summer. Yet the Federal Reserve seems decidedly unimpressed.

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Why doesn’t the Federal Reserve target another number?

December 15, 2022 Comments Off on Why doesn’t the Federal Reserve target another number?

What’s so special about the number 2? Quite a lot, if you’re a central banker – and that number is followed by a percent sign. That’s been the de facto or official target inflation rate for the Federal Reserve, the ...

Tagged with: federal reserve inflation Veronika Dolar