The Federal Reserve held its key interest rate unchanged Wednesday. The FOMC signaled it would be “patient” about future rate hikes. Fed Chairman Jerome Powell will hold a press conference at 2:30 p.m. ET. Following its first policy meeting of the year, the Federal Reserve on Wednesday held interest rates steady and emphasized that it will carefully assess the state of the economy before considering future hikes. “In light of global economic and financial developments and muted inflation pressures, the Committee will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate to support these outcomes,” it said in a statement. Fed Chairman Jerome Powell is expected to speak on the decision at 2:30 p.m. ST, marking a new era for the central bank. Press conferences are scheduled to follow every policy meeting from now on, as opposed to only occurring once every quarter and when rates were … [Read more...] about US Fed holds, says it’ll be ‘patient’ on future rate hikes
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No more rate hikes: Fed could hold this year and cut in 2020 to fend off recession
The global economic slowdown means the US Federal Reserve could abandon its planned rate hikes, freezing policy now and even cutting interest rates next year to battle a recession, economists fear. Jerome Powell and his fellow policymakers in the US had been on a confident path of regular rate rises as the economy strengthened, anticipating two or three more hikes this year, taking the top end of the federal funds rate from 2.5pc to as much as 3.25pc. But the economy is losing steam, as is the wider world with the eurozone and China also slowing. As a result a drastic change of plans could be on the cards. “We no longer expect any rate hike this year, ” said Philip Marey at Rabobank. "The Fed’s... To continue reading this article Start your free trial of Premium Access all Premium articles Subscriber-only events Cancel any time Free for 30 days then only £2 per week Try Premium Access one Premium article per week Register for … [Read more...] about No more rate hikes: Fed could hold this year and cut in 2020 to fend off recession
Fed policymakers call for caution on further U.S. rate hikes
RIVERWOODS, Ill./CHATTANOOGA, Tenn. (Reuters) - Another clutch of U.S. Federal Reserve policymakers said on Wednesday they would be cautious about raising interest rates without getting better a handle on how growing risks to an otherwise solid U.S. economic outlook could play out. FILE PHOTO: A police officer keeps watch in front of the U.S. Federal Reserve building in Washington, DC, U.S. on October 12, 2016. REUTERS/Kevin Lamarque/File Photo After months of tumult in the stock market, presidents of four of the 12 Fed regional banks said they wanted greater clarity on the state of the economy before extending the central bank’s rate hike campaign any further. Three of the four, Charles Evans of Chicago, Eric Rosengren of Boston, and James Bullard of St. Louis, are voting members this year on the Federal Open Market Committee, the bank’s policy-setting panel. Bullard has long been critical of the Fed’s rate increases, begun in December 2015, but the … [Read more...] about Fed policymakers call for caution on further U.S. rate hikes
More Fed officials say caution is needed before more rate hikes
RIVERWOODS, Ill./CHATTANOOGA, Tenn. (Reuters) - Another clutch of U.S. Federal Reserve officials said on Wednesday they would be cautious about any further increases in interest rates so that the central bank could assess growing risks to an otherwise solid U.S. economic outlook. FILE PHOTO: A police officer keeps watch in front of the U.S. Federal Reserve building in Washington, DC, U.S. on October 12, 2016. REUTERS/Kevin Lamarque/File Photo The presidents of three of the 12 Fed regional banks, from Chicago, St. Louis and Atlanta, all pointed to a need for greater clarity on the state of the economy before extending the central bank’s rate hike campaign into a fourth year. Two of the three, Charles Evans of Chicago and James Bullard of St. Louis, are voting members this year on the Federal Open Market Committee, the bank’s policy-setting panel. Bullard has long been critical of the Fed’s rate increases, begun in December 2015, but the caution from Evans is … [Read more...] about More Fed officials say caution is needed before more rate hikes
Evans still sees U.S. rate hikes but cites risks, says Fed can wait…
FILE PHOTO: Charles Evans, president of the Federal Reserve Bank of Chicago, poses for a photo in Palm Beach, Florida, U.S. January 17, 2018. REUTERS/Ann Saphir RIVERWOODS, Ill. (Reuters) - The Federal Reserve can wait and use the first half of this year to assess growing risks to the otherwise solid U.S. economic outlook, an influential regional Fed president said on Wednesday, even as he stuck by an expectation to eventually raise interest rates a bit into restrictive territory. Chicago Fed President Charles Evans has been among the most vocal backers of gradually tightening U.S. monetary policy. In his first public comments since November, he nodded to an array of “tough-to-read” factors highlighted by the recent market selloff, but penciled in a forecast for reasonably good U.S. growth and employment in 2019 and beyond. His prepared remarks gave no hard timeline for further rate hikes but they hinted he could agree to stand pat until around mid year to see how … [Read more...] about Evans still sees U.S. rate hikes but cites risks, says Fed can wait…