Federal Reserve Bank of New York President John Williams said Thursday that he sees lower risks to inflation as tariffs have driven up price pressures less than expected. "I see on the margin...a reduction of some of the upside risks to inflation" from tariffs, Williams told reporters after speaking at the Economic Club of New York. He noted this reduction comes alongside greater clarity about future economic policy. Williams acknowledged that President Donald Trump's import tax increases are "definitely" affecting price pressures, but added that in terms of tariff pass-throughs to higher...
Federal Reserve Bank of San Francisco President Mary C. Daly was on the news Thursday night, noting that the White House's unbalanced trade policies are keeping the Fed in a wait-and-see mode as policymakers prepare to see what kind of impact on the U.S. economy high import tariffs will have on the broader economy. Key highlights The labor market is in solid shape. Workers are worried about inflation. We're not going to get to 2% inflation this year. We're actually making progress on inflation. I see the balance in the labor market that we need for 2% inflation. Bond yields show the...
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 decisions on monetary policy are based on trackable data from the US economy. Donald Trump has been writhing on social media for months, desiring sharp rate cuts from the Fed as a low rate environment tends to make federal debt cheaper, something that the Trump administration's budget policies will add plenty of over the next ten years. Fed highlights Fed Chair Powell met with Trump at White House...
Federal Reserve Bank of Chicago President Austan Goolsbee said on Thursday (29) that they could return to a situation where interest rates could fall if tariffs are avoided through a deal or otherwise, according to Reuters. "If politics drives interest rates, inflation will come back," Goolsbee added, further noting that sometimes central banks have to do what the political apparatus doesn't like. "Stagflation is the worst case scenario for central banks; that's not what we're facing now." "This is the direction of stagflation, but it's not stagflation." Market reaction The US Dollar...
Federal Reserve officials broadly agreed heightened economic uncertainty justified their patient approach to interest-rate adjustments, minutes from their latest policy meeting showed Wednesday. Policymakers judged the risks of both higher unemployment and inflation had risen since their previous meeting in March, primarily due to the potential impact of tariffs. Such a scenario could pit the Fed's goals of stable prices and maximum employment against one another. "Participants agreed that with economic growth and the labor market still solid and current monetary policy...
The Federal Open Market Committee (FOMC) will release the Minutes of its May 6-7 meeting on Wednesday (5/28). At that time, policymakers decided to maintain the Fed Funds Target Range (FFTR) at 4.25%-4.50%, as widely anticipated by market participants. The Federal Reserve (Fed) took a more aggressive stance earlier in the year, amid concerns about the potential impact of U.S. President Donald Trump's tariffs on economic progress and inflation. Officials not only decided to keep rates on hold, but they also gave no hints about future rate cuts, maintaining the wait-and-see stance they took...
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...