Fed poised for quarter-point rate hike next week, despite turmoil

Even with turmoil in the banking industry and uncertainty ahead, the Federal Reserve likely will approve a quarter-percentage-point interest rate increase next week, according to market pricing and many Wall Street experts. Rate expectations have been on a rapidly swinging pendulum over the past two weeks, varying from a half-point hike to holding the line […]

One year after the first rate hike, the Fed stands at policy crossroads

U.S. Federal Reserve Chair Jerome Powell responds to a question from David Rubenstein (not pictured) during an on-stage discussion at a meeting of The Economic Club of Washington, at the Renaissance Hotel in Washington, D.C., U.S, February 7, 2023. REUTERS/Amanda Andrade-Rhoades Amanda Andrade-rhoades | Reuters The Federal Reserve is one year down its rate-hiking path, […]

The Fed smothers capitalism in an attempt to save it

Much about the collapse of Silicon Valley Bank has been profoundly modern. The bank’s name. A client base of tech-focused venture capitalists. A panic whipped up by tweets. Cash withdrawals via smartphones. At its crux, though, the lender’s fall was the latest iteration of a classic bank run. And the solution, a central bank stepping […]

Long-awaited Fed digital payment system to launch in July

The Marriner S. Eccles Federal Reserve Board Building in Washington, D.C. Sarah Silbiger | Reuters The Federal Reserve’s digital payments system, which it promises will help speed up the way money moves around the world, will debut in July. FedNow, as it will be known, will create “a leading-edge payments system that is resilient, adaptive, […]

Market pricing swings back to quarter-point Fed rate hike

A trader works on the floor during morning trading at the New York Stock Exchange (NYSE) on March 10, 2023 in New York City.  Spencer Platt | Getty Images It seemed like only yesterday that markets were sure that a tougher Federal Reserve was going to raise its benchmark interest rate a half percentage point […]

Fed Rates Up into 2024?

Federal Reserve Chairman Jerome Powell has made it clear that he sees higher interest rates ahead in his battle against inflation and their unrealistic 2% target. Many traders are now scrambling talking about how Powell said the Fed will probably raise rates more and possibly faster than previously anticipated. They are now taking that as a […]

Fed can’t tame inflation without more rate hikes, paper says

The Federal Reserve building is seen before the Federal Reserve board is expected to signal plans to raise interest rates in March as it focuses on fighting inflation in Washington, January 26, 2022. Joshua Roberts | Reuters The Federal Reserve is unlikely to be able to bring down inflation without having to raise interest rates […]

Key Fed inflation measure rose 0.6% in January, more than expected

A measure the Federal Reserve watches closely to gauge inflation rose more than expected in January, indicating the central bank has more work to do to bring down prices. The personal consumption expenditures price index excluding food and energy increased 0.6% for the month, and was up 4.7% from a year ago, the Commerce Department […]

Should the Fed Stop Tightening?

The Federal Open Market Committee raised its federal funds rate target by 25 basis points on Wednesday. It has raised its target by 450 basis points over the last year. In December, the median FOMC member projected the target would exceed 5 percent in 2023, but some think the Fed has already done enough to […]

FirstFT: Fed slows rate rises while ECB to stick to half-point increase

Good morning. This article is an on-site version of our FirstFT newsletter. Sign up to our Asia, Europe/Africa or Americas edition to get it sent straight to your inbox every weekday morning The US Federal Reserve increased its benchmark interest rates by a quarter of a percentage point yesterday, marking a return to a slower, […]