Breaking News: Economy
Fed members predict more hikes with the benchmark rate above 3% by year-end
U.S. Federal Reserve Chairman Jerome Powell testifies during the Senate Banking Committee hearing titled “The Semiannual Monetary Policy Report to the Congress”, in Washington, U.S., March 3, 2022. Tom Williams | Reuters The Federal Reserve said Wednesday it expects the fed funds rate to increase by another roughly 1.75 percentage points over the next four […]
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Watch Fed Chair Powell discuss the central bank’s biggest rate hike in nearly three decades
Stocks climbed higher after Powell leaves the door open for another 75 basis point rate hike The major indexes jumped higher after Federal Reserve Chair Jerome Powell indicated that another 0.75 percentage point rate hike could be possible. Investors cheered central bank officials taking a tougher stance on inflation. At 3:10 p.m. ET, the S&P […]
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Fed hikes its benchmark interest rate by three-quarters of a point, the biggest increase since 1994
The Federal Reserve on Wednesday launched its biggest broadside yet against inflation, raising benchmark interest rates three-quarters of a percentage point in a move that equates to the most aggressive hike since 1994. Ending weeks of speculation, the rate-setting Federal Open Market Committee took the level of its benchmark funds rate to a range of […]
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Here’s everything the Fed is expected to announce, including the biggest rate hike in 28 years
US Federal Reserve Chairman Jerome Powell speaks during a news conference in Washington, DC, on May 4, 2022. Jim Watson | AFP | Getty Images The Federal Reserve on Wednesday is expected to do something it hasn’t done in 28 years — increase interest rates by three-quarters of a percentage point. In response to soaring […]
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Retail sales posted unexpected 0.3% decline in May as inflation hammers consumers
Retail sales turned negative in May as consumers pulled back spending while inflation surged, the Commerce Department reported Wednesday. Advance retail and food service spending fell 0.3% for the month, below the Dow Jones estimate for a 0.1% gain. Excluding autos, sales were up 0.5%, which fell short of expectations for a 0.8% increase. The […]
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The Fed’s balance sheet reduction officially starts Wednesday. Here’s how it works
In addition to an almost certain interest rate increase, the Federal Reserve on Wednesday will begin reducing its asset holdings, a process that is expected to drain trillions of dollars in liquidity from the financial system. The Fed’s balance sheet , primarily consisting of Treasurys and mortgage-backed securities (MBS), totals close to $9 trillion. That […]
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Fed reportedly considering hiking interest rates by three-quarters of a point this week
The Marriner S. Eccles Federal Reserve building in Washington, DC, on January 25, 2022. Stefani Reynolds | AFP | Getty Images Markets are beginning to anticipate an even faster pace of interest rate hikes, and Federal Reserve officials apparently are contemplating the possibility as well. Central bank policymakers are entertaining the idea of a 75 […]
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Strong inflation, anxious consumers add up to more worries that recession has already arrived
Trays of beef are for sale in the meat section of a supermarket in McLean, Virginia, June 10, 2022. Saul Loeb | AFP | Getty Images The case that a recession is looming over the U.S. got stronger Friday, as blistering inflation and historic lows in consumer sentiment painted an increasingly dark economic picture. As […]
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Inflation rose 8.6% in May, highest since 1981
Inflation accelerated further in May, with prices rising 8.6% from a year ago for the fastest increase since December 1981, the Bureau of Labor Statistics reported Friday. The consumer price index, a wide-ranging measure of goods and services prices, increased even more than the 8.3% Dow Jones estimate. Excluding volatile food and energy prices, so-called […]
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Bringing inflation down is going to take time, patience — and pain
Products are seen in a supermarket, in Los Angeles, California, May 27, 2022. Lucy Nicholson | Reuters Tackling runaway inflation won’t be easy and it won’t be quick, and it may carry a steep price tag that is just beginning to be paid. To stop 40-year highs in price increases, the economy will have to […]
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