U.S. President Donald Trump said on Tuesday he had removed Treasury Secretary Scott Bessent from consideration for an open seat on the Federal Reserve's Board of Governors, but said he would "very shortly" announce his choice. In an interview with CNBC, Trump said Fed Governor Adriana Kugler's decision to vacate her seat early was a "pleasant surprise." The departure of Kugler, whose term would have ended on January 31, appears to have accelerated Trump's planning for the U.S. central bank, giving him an immediate opening to fill with a person who could also be promoted to the top...
Long-term interest rates are now notably higher, driven mainly by increased real rates rather than shifts in inflation expectations, while estimates of the longer-run neutral policy rate have also risen, Fed Chair Jerome Powell said on Thursday. Speaking about the Fed's ongoing review of its policy framework, last updated in 2020, Powell said the economy has changed a lot since then. He warned that inflation might become more volatile in the future due to more frequent supply shocks, which could make it harder for central banks to achieve price stability. Throughout his remarks, Powell...
The Bank of England cut its main interest rate by 0.25 percentage points to 4.25% on Thursday, despite an unexpected three-way split among policymakers as U.S. President Donald Trump's tariffs weigh on global economic growth. The BoE's Monetary Policy Committee voted 5-4 in favour of the decision to cut rates by a quarter point. Two members, Swati Dhingra and Alan Taylor, voted for a bigger half-point cut while Chief Economist Huw Pill and external member Catherine Mann wanted to keep interest rates on hold. The decision by the British central bank is its first since Trump announced...
Federal Reserve Chair Jerome Powell said the economic impact of new tariffs is likely to be significantly larger than expected, and the central bank must make sure that doesn't lead to a growing inflation problem. "While uncertainty remains elevated, it is now becoming clear that the tariff increases will be significantly larger than expected," Powell said Friday at the Society for Advancing Business Editing and Writing annual conference. "The same is likely to be true of the economic effects, which will include higher inflation and slower growth." Despite that view, in a...
The Reserve Bank of Australia (RBA) maintained its cash rate at 4.1% during its April meeting, holding borrowing costs unchanged after slashing 25 bps in the February meeting, aligning with market consensus. The committee also kept the interest rate on Exchange Settlement balances at 4.0%. Source: Trading Economics
According to a statement by the Federal Reserve (Fed), Fed Chair Jerome Powell met with United States (US) President Donald Trump on Thursday, where the head of the Fed reiterated that the Fed's...
The Reserve Bank of Australia (RBA) maintained its cash rate at 4.1% during its April meeting, holding borrowing costs unchanged after slashing 25 bps in the February meeting, aligning with market...