A surprisingly weak jobs report for February has cast doubt on the idea that the labor market is stabilizing. However, it probably won’t be enough to convince the Federal Reserve to cut interest rates this month, as a recent oil price shock stemming from conflict in Iran introduces a new risk of higher inflation. “This […]
A Federal Reserve governor suggested that the rise of artificial intelligence may soon push the central bank into a tough spot, forcing it to choose between fighting inflation and boosting employment. The official noted that if AI significantly increases productivity, the economy could grow strongly even as changes in the labor market lead to higher […]
Federal Reserve officials appeared surprisingly wary of cutting interest rates during their meeting last month. In fact, the discussion took a surprising turn, with several officials even suggesting the central bank might need to raise rates if inflation remains stubbornly high. The minutes from the late January policy meeting fell short of suggesting a majority […]
Federal Reserve officials are signaling that future interest rate decisions will hinge on the path of inflation, according to minutes from the central bank’s January policy meeting released on Wednesday. The discussion revealed a range of views, with some officials anticipating more rate cuts if price pressures ease, while others favored holding rates steady for […]
A leading financial strategist and former Federal Reserve adviser recently shared her outlook for interest rates and the potential leadership of the central bank. Her base case for the year is that we will see four interest rate cuts. She suggested that if the Fed doesn’t begin cutting rates at the upcoming policy meetings, the […]
The leader of Japan’s junior ruling coalition partner has stated that the government must refrain from interfering in monetary policy. Instead, he argued, officials should focus on building an economy resilient enough to withstand the potential impact of future interest rate increases. In an interview, the party leader also emphasized the need to implement a […]
An unusually busy week of economic data in the US sent conflicting signals for the Federal Reserve. January payrolls rose by the most in over a year, and the unemployment rate unexpectedly fell, allaying concerns that the job-market weakness from the previous year had carried over. However, inflation data at the end of the week […]
The European Central Bank is prepared to offer euro liquidity to monetary authorities from around the world, an effort to prevent market tensions and increase the global use of the single currency. The Frankfurt-based institution announced it will extend repo lines to nearly all central banks globally, excluding only those for reasons such as money […]
A senior Federal Reserve official expressed optimism that interest rates could decline “a fair bit more,” but emphasized that further evidence of inflation returning to the central bank’s target is necessary before supporting additional cuts. The official pointed to strong economic growth and a stable job market as reasons for ongoing caution. “If we could […]
A senior Federal Reserve official has indicated that interest rates could decrease substantially if recent improvements in inflation are sustained. The comments came during a discussion of the latest economic data, which showed a mixed picture for the U.S. economy. The official pointed to encouraging signs in the recent Consumer Price Index report, particularly in […]
