Federal Reserve Chairman Jerome Powell attributed the surge in inflation above the 2% target to the import tariffs imposed by President Donald Trump. In a press conference following the FOMC meeting, Powell explained that much of the current "excess" inflation stems not from overheated demand, but from rising prices of imported goods due to higher import duties. The central bank views the effects of these tariffs as a one-time price spike, rather than persistent inflationary pressures, although their impact is still being felt in current data. Powell emphasized that if tariffs are excluded,...
The Federal Reserve on Wednesday said that it would start buying short-dated government bonds to help manage market liquidity levels to ensure the central bank retains firm control over its interest rate target system. The technically oriented purchases will commence on December 12, the central bank said as part of the policy announcement associated with its latest Federal Open Market Committee meeting. When it begins buying, the initial round will total around $40 billion in Treasury bills. The Fed said in a statement that its buying "will remain elevated for a few months to offset...
The U.S. Federal Reserve is expected to cut interest rates on Wednesday as policymakers grapple with a data gap caused by the recent government shutdown and address conflicting views about the risks facing the economy. The anticipated quarter-percentage-point cut is likely to be accompanied by an uncertain or even aggressive approach to the interest rate path next year, given the division among policymakers between those skeptical about the need for more rate cuts amid persistently high inflation and those who believe the economy and job market could weaken if the U.S. central bank doesn't...
Federal Reserve (Fed) officials are expected to cut interest rates again on Wednesday, marking the third consecutive rate cut. However, many analysts believe that after this move, the Fed will likely pause and not rush to cut rates again early next year. This is because some officials are starting to worry that excessive cuts could trigger an overheated economy. Within the Fed itself, there are sharp differences of opinion. Some believe that interest rates are currently at a "neutral" level, meaning they are neither slowing nor accelerating economic growth. On the other hand, others believe...
The Reserve Bank of Australia (RBA) kept its benchmark interest rate unchanged at 3.6% for the third consecutive year at its final meeting on Tuesday. The decision was unanimously adopted by the nine-member board amid a combination of resurgent inflationary pressures and a still-tight labor market. In its statement, the RBA emphasized that its next move would depend heavily on incoming economic data, and that it needed more time to assess the strength and persistence of inflationary pressures. Following the decision, the Australian dollar weakened to around US$0.6616, while the three-year...
President Donald Trump said he would fire Lisa Cook from the Federal Reserve's Board of Governors if she does not resign her post over mortgage-fraud accusations from a top...
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...