Fed policymakers signaled a cautious stance of their own on Wednesday at a policy meeting that left interest rates unchanged but acknowledged rising risks to both growth and inflation
Taking stock of the Trump administration's rollout of tariffs, Fed officials actually marked up their outlook for inflation this year
Even as the economy undergoes what may be wrenching changes, the Federal Reserve on Wednesday is expected to signal it could cut its key interest rate twice this year - the same forecast it issued in December. Yet the reasons for those cuts may change dramatically, depending on how the economy fares. What were once seen as good news rate reductions in response to a steady decline in inflation back to the Fed's target of 2%, now could become bad news cuts that would be implemented to offset an economy struggling in the wake of widespread tariffs, rapid cuts in government spending, and a spike in economic uncertainty. At the end of last year, the Fed reduced its key interest rate three times to about 4.3% from 5.3%. The Fed had rapidly raised its rate to combat inflation, and as price growth headed lower, that allowed the central bank to reverse some of those rate hikes. In September, inflation dropped to a 3 1/2 year low of 2.4%. Yet inflation then marched higher for four straight .
The Fed's two-day rate-setting meeting kicks off on Tuesday, and expectations are that the central bank will keep interest rates steady
Fed officials have signaled they may be on hold for some time amid uncertainty around President Donald Trump's economic policies, particularly on trade
Wednesday night's decision by US District Judge Tanya Chutkan in Washington, D.C., came in a lawsuit by 14 Democratic state attorneys general against Musk, DOGE and Republican President Donald Trump
Before joining the Fed, Bowman served as the state bank commissioner of Kansas for a year and a half, before which she spent several years as vice president of Farmers & Drovers Bank
The consumer price index jumped 0.5 per cent last month after gaining 0.4 per cent in December
After Trump issued an executive order on Jan. 20 ending DEI programs across the federal government, the Fed took down pages on its website dedicated to diversity and inclusion
The accompanying policy statement did not include the reference to inflation having made progress toward the Fed's 2% target. No rate cut is expected before June
Investors now await the December US personal consumption expenditures (PCE) price index report on Friday
Waller said that while it was true inflation "appears to have stalled" above the Fed's 2% target in the waning months of 2024
The greenback rose to a near six-month peak after the US data. It was up 0.4 per cent at 158.195 yen. Earlier in the global session, the dollar hit its highest since July of 158.425 yen
Barr said he was stepping down from his role as the central bank's vice chair of supervision over a year before his term expires, but planned to keep his seat on the Fed's Board of Governor
The dollar advanced against all of its major peers in 2024, with the New Zealand dollar, Norwegian krone and Japanese yen weakening the most against the US currency
These tests determine the capital banks must set aside to meet their obligations and also dictate the scope of dividend payouts and stock buybacks
Stock market in 2024 so far: One of the most pivotal events impacting investor sentiment was the outcome of the 2024 General Elections
The Fed on Wednesday delivered a third straight interest-rate cut while signaling a slower pace of monetary easing next year to keep inflation in check, sending global stocks into a tailspin
Mr Powell brought to Wednesday's press conference details from 2018 Fed research that suggested looking past tariff-induced inflation
The dollar gave back some of Wednesday's gains and gold rallied as investors grew accustomed to the reality that the central bank will take a slower, more measured approach to policy easing