The Fed voted Wednesday not to raise its key interest rate, as central bank officials expressed concern with the pace of economic growth. In a move largely expected in financial markets, the policymaking Federal Open Market Committee unanimously agreed to keep its benchmark rate target at 0.75% to 1%. The rate is used as a […]
Ed. Note: This article first appeared in Fortune Despite routinely criticizing Janet Yellen throughout his campaign, President Donald Trump now says he’s open to the possibility of her serving another term as chairman of the Federal Reserve. In an interview with the WSJ, Trump the left the door open for the Yellen’s renomination once her tenure is up […]
Ed. Note: This article first appeared in CNBC The Fed’s plans to raise U.S. interest rates gradually are aimed at sustaining full employment and near 2% inflation without letting the economy overheat, Fed Chair Janet Yellen said on. “I think we have a healthy economy now,” Yellen said at an event at the University of Michigan’s […]
Ed. Note: This article first appeared in Bloomberg Mohamed El-Erian, Allianz SE’s chief economic adviser, said the slow but steady economic expansion of the post-financial crisis era could be at risk if elected leaders are unable to take the reins from monetary policy makers in stimulating further growth with structural reforms. “If we do not […]
Ed. Note: This article first appeared in Bloomberg The scandal involving Wells Fargo that surfaced last year shows the U.S. banking industry still has work to do on improving its culture, Federal Reserve Bank of New York President William Dudley said. “Like mortgage brokers in the early 2000s, it appears that job security depended almost exclusively […]
Even as the central bank amassed trillions of dollars of debt to prop up the economy following the financial crisis, it didn’t hedge its holdings or fret about gains and losses that might keep ordinary investors up at night. This extreme buy-and-hold stance has had an incredible calming effect on the bond market.
There was only one dissent from Wednesday’s rate-raising decision by the Federal Reserve’s monetary policy committee, and it came from Neel Kashkari. The former aerospace engineer and onetime Republican candidate for governor of California is now president of the Federal Reserve Bank of Minneapolis.
Ed. Note: This article first appeared in CNBC Expect the Federal Reserve to lead markets rather than follow them, Mohamed El-Erian, chief economic advisor at Allianz, told CNBC on Thursday, a day after the Fed hiked interest rates for the second time in three months. “There is an ongoing transition in Fed policy. This is […]
Ed. Note: This article first appeared in CNBC While the Federal Reserve is gradually raising interest rates in the U.S., the actions by two other central banks are actually the most important thing to watch right now, bond guru Bill Gross told CNBC on Wednesday. And it is something that could possibly wreak havoc on […]
Ed. Note: This article first appeared in CNBC If you are a borrower, you’re going to pay. If you are a saver, you’re not going to get paid — such is the nature of interest rate hikes. With the Fed set to raise its benchmark rate Wednesday, the effects will be immediate for some, not […]