Key Insight: Federal Reserve Chair Jerome Powell said there is uncertainty about how the Iran war will affect the economy, but that the central bank’s monetary policy is well positioned to “wait and see” how conditions unfold. Expert Quote: “You have to carefully monitor inflation expectations, because a series of these supply shocks can lead […]
Powell says Fed cautious as Iran war drives inflation risks Read More »
Key insight: Fed Gov. Lisa Cook, Gov. Michael Barr and Vice Chair Philip Jefferson said in separate appearances Thursday that uncertainty over tariffs and geopolitical tensions is shifting the balance of risks toward combating a rise in inflation. Expert quote: “The ongoing trade policy uncertainty and geopolitical tensions … pose upside risk to my inflation
Fed Govs. express concern about Iran war-driven inflation Read More »
Key Insight: Federal Reserve Gov. Michael Barr said inflation pressures on goods and non-housing services remain elevated and that the Middle East conflict could add to the burden. Expert quote: “I would like to see evidence that goods and services price inflation is sustainably retreating before considering reducing the policy rate further, provided labor market
Fed’s Barr: No interest rate cuts until inflation is tamed Read More »
Key insight: Fed Gov. Stephen Miran said he is looking through the oil price shock and keeping his policy outlook unchanged, anticipating four 25 basis point cuts in 2026. Expert quote: “Looking 12 to 18 months out, there’s still not enough clarity to think that monetary policy itself should adjust in response to what’s happened.”
Fed’s Miran says oil shock unlikely to alter rate outlook yet Read More »
In a widely expected move, the Federal Reserve held its benchmark interest rate steady Wednesday at a target range of 3.5% to 3.75%, the same level it set in January. “Available indicators suggest that economic activity has been expanding at a solid pace. Job gains have remained low, and the unemployment rate has been little
Fed holds rates, officials signal wait and see on inflation risks Read More »
Key Insight: Federal Reserve Chair Jerome Powell acknowledged Wednesday that he may remain at the helm of the central bank past the end of his term because of delays in confirming his successor, and said he does not plan to leave while an investigation into him is ongoing. Expert quote: “I have no intention of
Fed Chair Powell to stay on until DOJ concludes probe Read More »
Key Insight: The U.S. involvement in the war with Iran has driven energy prices higher, a development economists say could add to inflation and reduce the likelihood of rate cuts this year. Expert quote: “I think the Fed is just going to sit on its hands quite happily because of what’s going on in Iran
Iran scrambles inflation signals as Fed mulls interest rates Read More »
Key Insight: U.S. District Judge James Boasberg wrote in documents unsealed Friday that the Trump administration produced no evidence to suspect Federal Reserve Chair Jerome Powell of a crime, justifying the tossing of the subpoenas. The Justice Department said it would challenge the decision. Expert quote: “The Government has produced essentially zero evidence to suspect
Judge tosses out ‘unsubstantiated’ subpoenas into Powell Read More »
Key insight: The Bureau of Labor Statistics reported that the economy lost 92,000 jobs in February, signaling a cooling labor market. Supporting data: Health care jobs fell by 28,000, while the overall unemployment rate held steady at 4.4%. Forward look: The declining job totals could signal to the Federal Reserve that rate cuts are necessary
Economy loses 92,000 jobs in February Read More »
Key insight: Fed Gov. Cook said artificial intelligence may already be influencing employment trends, pointing to lower demand for computer engineers as one potential sign of change. Expert quote: “It is very difficult to measure labor productivity and total factor productivity. So we should be patient and we should be nimble in thinking about the
Cook: AI’s labor impact may take years to measure Read More »