Fed Policymakers Express Concerns About Economic And Business Sentiment

During a panel hosted by the Federal Reserve Bank of Atlanta, San Francisco and Cleveland Fed Bank Presidents Mary C. Daly and Beth Hammack both took the opportunity to express concerns about the current state of the U.S. economy. While economic data remains strong, U.S. trade policies have left many consumers and businesses increasingly frustrated. Atlanta Fed President Raphael Bostic also participated in the event, adding to his earlier comments made on Tuesday. The Trump administration's erratic and erratic tariffs threaten to strain the logistics of U.S. trade, which relies heavily on...

Powell Warns of Higher Rates, Inflation Volatility

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...

BoE cuts rates to 4.25% as it sees tariff hit to growth

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...

Powell indicates tariffs could pose a challenge for the Fed between controlling inflation and boosting growth

Powell Signals Fed Still on Hold, Wary of Persistent Price Shock

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...