Page 2 - Federal Reserve

White House may 'veto' Federal Reserve presidents: US Treasury Secretary

Treasury Secretary Scott Bessent said Wednesday he would push a new requirement that the Federal Reserve's regional bank presidents live in their districts for at least three years before taking office, a move that could give the White House more power over the independent agency. In comments at the New York Times' DealBook Summit, Bessent said that there is a disconnect with the framing of the Federal Reserve and added that, unless someone has lived in their district for three years, we're going to veto them. Bessent has stepped up his criticism of the Fed's 12 regional bank presidents in recent weeks after several of them made clear in a series of speeches that they opposed cutting the Fed's key rate at its next meeting in December. President Donald Trump has sharply criticized the Fed for not lowering its short-term interest rate more quickly. When the Fed reduces its rate it can over time lower borrowing costs for mortgages, auto loans, and credit cards. The prospect of the ...

Rate-cut expectations lift benchmark equity indices to near peak levels

Renewed expectations of December rate cuts by the Fed and RBI lifted sentiment, sending the Nifty near a record close and giving indices their strongest single-day rise in five months.

US Fed releases new guidance for bank oversight in move praised by industry

The Federal Reserve's top banking regulator on Tuesday released new guidelines for the agency's supervision of the financial system, earning praise from industry trade groups and criticism from her predecessor. In a set of sweeping changes, the principles call for bank examiners to focus on material financial risks and to not become distracted from this priority by devoting excessive attention to processes, procedures, and documentation." The guidelines are set out in a memo originally distributed to Fed employees October 29 but released Tuesday. Michelle Bowman, the Fed's vice chair for supervision, said the principles will sharpen the central bank's focus and build a more effective supervisory framework. By anchoring our work in material financial risks, we strengthen the banking system's foundation while upholding transparency, accountability, and fairness," Bowman said in a written statement. Bowman was named vice chair by President Donald Trump in March. Since Trump took offic

Gold falls for second week as strong dollar, Fed stance hit sentiment

Gold prices extended their decline for the second consecutive week as improved global risk appetite, a strong dollar, and the US Federal Reserve's cautious tone of further rate cuts have dampened the demand for safe-haven asset. On the Multi Commodity Exchange (MCX), gold futures for December delivery plunged Rs 2,219, or 1.8 per cent, over the past week. During the past week, the yellow metal hit an intra-day low of Rs 1,17,628 per 10 grams on October 28. GOLD's CORRECTION DEEPENS AS DOLLAR STRENGTHENS, TENSIONS EASE Both global and domestic markets saw a sharp correction early in the week, breaking a nine-week rally amid easing geopolitical tensions, stronger US dollar, and profit-booking by investors have pushed gold prices lower. "Heavy profit-booking pushed global gold down from recent highs to test the USD 4,000 an ounce level. Domestic gold mirrored this, falling below Rs 1,19,000 per 10 grams before stabilising and recovering modestly in the latter half of the week," Sneha

Trump admin shortlists five candidates to replace Fed Chair Jerome Powell

Treasury Secretary Scott Bessent on Monday confirmed the names of five candidates to replace Jerome Powell as chair of the powerful Federal Reserve next year. On an Air Force One flight to Asia with President Donald Trump, Bessent said he would engage in a second round of interviews in the coming weeks and present a good slate of candidates to Trump right after Thanksgiving. Trump said he expected to decide on Powell's replacement by the end of this year. The five people under consideration are: Federal Reserve governors Christopher Waller and Michelle Bowman; former Fed governor Kevin Warsh; White House economic adviser Kevin Hassett; and Rick Rieder, senior managing director at asset manager BlackRock. The names suggest that no matter who is picked, there will likely be big changes coming to the Federal Reserve next year. Bessent, who is leading the search for Powell's replacement, last month published extensive criticisms of the Fed and some of the policies it has pursued from th

Safe-haven surge, Fed rate-cut bets drive gold to new record highs

Spot gold was up 1.4% at $4,264.63 per ounce as of 11:06 a.m. ET (1506 GMT) after bullion touched a record high of $4,270.59 earlier

Festive demand, US inflation data to steer gold prices next week: Analysts

Gold prices are expected to remain volatile in the coming week as traders weigh domestic festive demand and physical market premiums to key macroeconomic data release and political developments in the US, analysts said. Investors will also closely monitor commentaries by Federal Reserve officials, including Chair Jerome Powell, on Tuesday, which will provide more cues on the trajectory of gold prices in the near term. "In the next week, focus will be on the physical demand for bullion during the festive season in India along with global political and geo-political developments, particularly the passage of the US spending bill and efforts to resume diplomacy on ending the Russia-Ukraine war. These factors are likely to shape gold price trends in the coming months," Pranav Mer, Vice President, EBG - Commodity & Currency Research, JM Financial Services Ltd, said. Mer noted that gold prices closed yet another week on a positive note, but volatility remained elevated with sharp ...

Supreme Court lets Lisa Cook remain as Federal Reserve governor for now

The Supreme Court on Wednesday allowed Lisa Cook to remain as a Federal Reserve governor for now, declining to act on the Trump administration's effort to immediately remove her from the central bank. In a brief unsigned order, the high court said it would hear arguments in January over Republican President Donald Trump's effort to force Cook off the Fed board. The court will consider whether to block a lower-court ruling in Cook's favour while her challenge to her firing by Trump continues. The high-court order was a rare instance of Trump not quickly getting everything he wants from the justices in an emergency appeal. Separately, the justices are hearing arguments in December in a separate but related legal fight over Trump's actions to fire members of the boards that oversee other independent federal agencies. The case concerns whether Trump can fire those officials at will. But a second issue in the case could bear directly on Cook's fate: whether federal judges have the ...

US govt shutdown threatens timely economic data amid Fed uncertainty

The government shutdown that began Wednesday will deprive policymakers and investors of economic data vital to their decision-making at a time of unusual uncertainty about the direction of the US economy. The absence will be felt almost immediately, as the government's monthly jobs report scheduled for release Friday will likely be delayed. A weekly report on the number of Americans seeking unemployment benefits a proxy for layoffs that is typically published on Thursdays will also be postponed. If the shutdown is short-lived, it won't be very disruptive. But if the release of economic data is delayed for several weeks or longer, it could pose challenges, particularly for the Federal Reserve. The Fed is grappling with where to set a key interest rate at a time of conflicting signals, with inflation running above its 2 per cent target and hiring nearly ground to a halt, driving the unemployment rate higher in August. The Fed typically cuts this rate when unemployment rises, but ...

Fed's Lisa Cook warns US Supreme Court of market 'chaos' if she's fired

The Justice Department has asked the Supreme Court to let Trump remove Cook while it fights a lower court ruling that the economist is likely to succeed in her lawsuit

Fed chief Powell reiterates no risk-free path amid job, inflation risks

Powell offered no hints on whether he might support a rate cut at the Fed's next meeting, in October

Here's how to trade Silver on September 19; check resistance, support here

Spot silver closed with a loss of over 2 per cent at $41.67 MOz on September 17 as the US Dollar Index and bond yields spiked higher on the Fed Chair Powell's comments in his post FOMC presser

Gold outlook: Rate cut supports long-term upside; buy on dips, says analyst

Spot gold hit a new record high of $3,707 on September 17 as the US Federal Reserve cut the Fed Fund overnight rate by 25 bps to 4-4.25 per cent range and signalled two more rate cuts by the end of th

Powell delivers 25-bps cut but keeps markets guessing on rate path

Federal Reserve Chair Jerome Powell cut rates by 25 bps but left investors uncertain on future easing, citing inflation risks as markets priced in deeper reductions

China leaves key interest rate unchanged after Fed rate reduction

Resilient exports and a sharp stock market rally have allowed policymakers to withhold fresh stimulus, market watchers said, even with a broader economic slowdown

US Fed slashes rates by 25 bps, expects steady pace of cuts coming

Only new Governor Stephen Miran, who joined the Fed on Tuesday and is on leave as the head of the White House's Council of Economic Advisers, dissented in favor of a half-percentage-point cut

US Fed wrestles with how many interest rate cuts to make, how fast

With the Federal Reserve widely expected Wednesday to reduce its key interest rate by a quarter-point to about 4.1 per cent, economists and Wall Street investors will be looking for signals about next steps: How deeply might the Fed cut in the next few months? There are typically two different approaches the central bank takes to lowering borrowing costs: Either a measured pace that reflects a modest adjustment to its key rate, or a much more rapid set of cuts as the economy deteriorates in an often-doomed effort to stave off recession. For now, most economists expect it will take the first approach: What many analysts call a recalibration of rates to keep the economy growing and businesses hiring. Under this view, the Fed would reduce rates as many as five times by the middle of next year, bringing its rate closer to a level that neither stimulates or slows the economy. Wall Street traders expect three reductions this year and then two more by next June, according to futures pricin

Markets hit two-month highs on Fed hopes and trade optimism; rupee rebounds

Indian equities rose to two-month highs on optimism around India-US trade talks and expectations of a US Fed rate cut, with strong FPI and DII inflows supporting sentiment

Fed needs to be fully independent from Trump, says White House's Hassett

Trump's short list of candidates to succeed him includes Hassett, former Fed Governor Kevin Warsh and current Fed Governor Christopher Waller

Trump names Hassett, Warsh and Waller as top three finalists for Fed chair

Earlier, Trump indicated that while he had some idea of who he wanted to pick for the position, he was committed to an interview process