Recently, the US Federal Reserve has been in the news due to its decision to leave interest rates unchanged for the sixth consecutive meeting, signaling that rates may remain high for a longer period. There has been speculation about the Fed's next move, with officials considering the possibility of either cutting or raising rates in response to inflation concerns. This uncertainty has impacted investor sentiment and market dynamics, with implications for various sectors of the economy, including housing and stock markets.
The Federal Reserve System, established in 1913 through the Federal Reserve Act, serves as the central banking system of the United States. It is composed of 12 regional Reserve Banks and is overseen by the Board of Governors in Washington, D.C. The Fed plays a crucial role in conducting monetary policy, regulating and supervising financial institutions, and maintaining the stability of the financial system. Its decisions on interest rates and other monetary policies have far-reaching effects on the economy, influencing borrowing costs, inflation, employment levels, and overall economic growth. The Fed's independence is a key aspect of its operations, aimed at insulating its decisions from political influence to ensure effective policy implementation.
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Also, Biden and Trump agreed to debate in June and September. Here’s the latest at the end of Wednesday.
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The sudden resurgence of inflation has caused some more alarmist analysts to suggest that the US economy is in deep trouble.
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Fed officials still think their next move will be to cut rates, but they are not entirely ruling out the possibility that they might have to raise them.
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The Federal Reserve left interest rates unchanged for a sixth straight meeting and suggested that rates will stay high for longer.
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"If you take away Fed independence, investors are gonna get jittery, inflation expectations are going to go up, the dollar is going to tank."
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US stocks climbed to end the week. The tech sector rallied sharply, with the Nasdaq Composite up more than 2%.
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UK’s blue-chip index rises to 8,076, surpassing previous high of 8,047 in February 2023
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Mortgage rates have now risen three weeks in a row, a setback for home shoppers this spring homebuying season.
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While some Asian property markets have seen sharp declines in prices and transactions, borrowing costs are not the only factor at play in the region. The supply-demand imbalance, for one, is just as important, if not more so.
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The spring homebuying season is off to a sluggish start as home shoppers contend with elevated mortgage rates and rising prices
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With the Fed’s pivot plans now in disarray, it’s 2015 in reverse.
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It came days after Former Prime Minister Liz Truss said she wants to “see the back” of the fiscal watchdog.
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Prices and mortgage rates are climbing as Wall Street bets that interest rates will remain higher for longer.
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"The acceleration of inflation this year makes a cut prior to December challenging, in our view," the team led by Michael Gapen said in the note.
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The March reading of the PPI had the markets breathing a sigh of relief on Thursday morning before the bell.
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Newly released Consumer Price Index data shows inflation accelerated in March. The year-over-year percent change was 3.5%.
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The data suggests more benign price pressures compared to the start of the year.
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Powell in recent weeks has had to reconcile expectations for rate cuts to begin this year with data showing improvement in the inflation numbers has slowed, if not stalled.
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World’s fossil-fuel producers on track to nearly quadruple output from newly approved projects by decade’s end, report finds
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Governor Andrew Bailey said things are ‘moving in the right direction’.