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 Chairman Jerome Powell said Friday that the central bank can wait to see how President Donald Trump's aggressive policy actions play out before it moves again on interest rates. With markets nervous over Trump's proposals for tariffs and other issues, Powell reiterated statements he and his colleagues have made recently counseling patience on monetary policy amid the high level of uncertainty. The White House "is in the process of implementing significant policy changes in four distinct areas: trade, immigration, fiscal policy, and regulation," he said in a speech for the...
Federal Reserve officials in January agreed they would need to see inflation come down more before lowering interest rates further, and expressed concern about the impact President Donald Trump's tariffs would have in making that happen, according to meeting minutes released Wednesday. Policymakers on the Federal Open Market Committee unanimously decided at the meeting to hold their key policy rate steady after three consecutive cuts totaling a full percentage point in 2024. In reaching the decision, members commented on the potential impacts from the new administration, including chatter...
The Bank of Japan could hike interest rates by as soon as May, ING analysts said in a Monday note, as gross domestic product data showed the economy grew much more than expected in the fourth quarter of 2024. A May rate hike could come especially if springtime wage negotiations between major Japanese labor unions and employers yields another year of bumper hikes. Strong wage hikes in 2024 were a key motivator of the BOJ's ongoing rate hike cycle, as Japanese private consumption and inflation picked up sharply through most of 2024. The BOJ expects this trend to continue in 2025,...
Federal Reserve Chairman Jerome Powell said Wednesday the central bank has not been cut off from any data it needs to do its work. Speaking before a House panel as the Trump administration has been stripping government websites from various data sets, Powell he wasn't aware of losing anything the Fed needs, while saying he'd speak up if issues emerged. Powell was also asked about outside access to critical systems the Fed and the Treasury Department use to process government payments and Powell noted access to these tools is done "very carefully." Many observers have grown concerned about...
Jerome Powell, Chairman of the United States (US) Federal Reserve (Fed), repeated that they do not need to be in a hurry to adjust the monetary policy in his prepared remarks for delivery on the first day of his testimony on the semi-annual Monetary Policy Report before the Senate Banking Committee. "Policy is well-positioned to deal with risks, uncertainties." "We can maintain policy restraint for longer if economy remains strong and inflation does not move toward 2%." "We can ease policy if labor market unexpectedly weakens or inflation falls more quickly than expected." "The US is...
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...