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 .
Stock Market Today, Wednesday, March 19: The US Fed will announce its policy decision tonight amid concerns of inflation ticking higher due to US President Donald Trump's tariffs, if imposed.
President Donald Trump on Monday nominated Michelle Bowman to oversee the Federal Reserve's financial regulatory efforts, a move that could lead to looser rules for large banks. Bowman was appointed by Trump in 2018 to serve on the Fed's governing board. She replaces Michael Barr as the Fed's Vice Chair for Supervision, after Barr stepped down last month to avoid a legal fight that could have ensued had Trump carried out his threat to fire him. Barr, however, stayed on the seven-member Fed board, forcing Trump to pick from one of the existing governors. Her nomination was welcomed by banking industry lobbying groups, including the American Bankers Association and the Independent Community Bankers of America. As Vice Chair, Bowman will be the most powerful federal bank regulator, and will coordinate with the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency on developing bank rules. The position requires Senate confirmation, though analysts expect she
Even as the Federal Reserve chair has touted US resilience, uneasiness sparked by President Donald Trump's rapidly escalating trade war has sent stocks tumbling over the past month
Fed officials have signaled they may be on hold for some time amid uncertainty around President Donald Trump's economic policies, particularly on trade
The price of 22-carat gold rose Rs 10, with ten grams of the yellow metal selling at Rs 80,660
The price of 22-carat gold fell Rs 10, with ten grams of the yellow metal selling at Rs 79,890
Powell will deliver his remarks to an economic conference just ahead of the communications blackout for the Fed's March 18-19 policy meeting
The unemployment rate is forecast at 4.1 per cent amid historically low layoffs, with wages rising solidly
Tariffs on China are set to begin on Tuesday, and Trump has signaled he will impose duties on other trading partners as well
US Department of Justice stated that on February 4, 2020, in response to questioning by the FRB-OIG, Rogers lied about his accessing and passage of sensitive information and his associations
Inflation is nearly contained, but the Fed sees enough uncertainty and risk on the horizon that it has moved to the sidelines, at least for now
Trump commented after the Federal Open Market Committee voted unanimously to keep the federal funds rate in a range of 4.25%-4.5%
Trump, who frequently criticized Powell and the Fed during his first term, again is testing those limits, saying last week that he'll "demand" immediate interest-rate cuts
In the previous session, the Sensex jumped 631.55 points, or 0.83 per cent, to settle at 76,532.96. The Nifty50 also added 205.85 points, or 0.90 per cent, to close at 23,163.10
Fed officials say they largely believe the progress in lowering inflation will resume this year, but have now put rates on hold as they await data to confirm it
Investors and many economists still expect the Fed to reduce interest rates later this year, but the watchword for policymakers for now may be caution until they are more certain inflation will fall
In the previous session, the Sensex declined 329.92 points, or 0.43 per cent to 76,190.46. Similarly, the Nifty50 ended the day 113.15 points, or 0.49 per cent, lower at 23,092.20
Stock Market LIVE on Friday January 24, 2025: At 6:56 AM, GIFT Nifty futures were trading 33 points higher at 23,297, indicating a higher start for the bourses
With inflation moving closer to US Federal Reserve's target, and data showing a stable labor market, the Fed could afford to wait for more data before undertaking further interest rate cuts, she said