Fed’s Policy Pivot May Prove Late and Abrupt, Critics Fret

The Federal Reserve is still buying bonds as prices surge. Some praise the central bank’s continuing policy pivot; others ask if it was fast enough.

#coronavirus-2019-ncov, #economic-conditions-and-trends, #federal-reserve-system, #inflation-economics, #interest-rates, #prices-fares-fees-and-rates, #quantitative-easing, #stimulus-economic, #stocks-and-bonds, #united-states-economy, #united-states-politics-and-government

S&P 500 Rallies After Touching Correction Territory, Erasing Day’s Losses

The S&P 500 slid into correction territory before rallying, and signals on Wall Street show that investors have become markedly more pessimistic.

#banking-and-financial-institutions, #federal-reserve-system, #interest-rates, #nasdaq-composite-index, #standardpoors-500-stock-index, #stocks-and-bonds, #united-states-economy

Rapid Inflation Fuels Debate Over What’s to Blame: Pandemic or Policy

The White House is emphasizing that inflation is worldwide. Economists say that’s true — but stimulus-spurred consumer buying is also to blame.

#biden-joseph-r-jr, #consumer-behavior, #consumer-price-index, #coronavirus-2019-ncov, #economic-conditions-and-trends, #federal-reserve-system, #inflation-economics, #international-trade-and-world-market, #prices-fares-fees-and-rates, #stimulus-economic, #supply-chain, #united-states, #united-states-economy

Stock Markets Off to Worst Start Since 2016 as Fed Fights Inflation

Stocks are off to their worst start of a year since 2016 as the central bank pulls back the enormous stimulus programs it began in the early months of the pandemic.

#banking-and-financial-institutions, #federal-open-market-committee, #federal-reserve-system, #inflation-economics, #interest-rates, #martin-william-mcchesney, #nasdaq-composite-index, #standardpoors-500-stock-index, #stocks-and-bonds, #united-states-economy

Why Biden Shouldn’t Blame Inflation on Monopolies

A Biden initiative comes in for weirdly vehement criticism.

#antitrust-laws-and-competition-issues, #biden-joseph-r-jr, #economics-theory-and-philosophy, #federal-reserve-system, #inflation-economics, #internal-sub-only-nl, #international-trade-and-world-market, #prices-fares-fees-and-rates, #united-states-economy, #united-states-politics-and-government

A Fascinating Page-Turner Made From an Unlikely Subject: Federal Reserve Policy

Christoper Leonard’s “The Lords of Easy Money” takes aim at the Fed’s decision to inject new money into the banking system.

#banking-and-financial-institutions, #books-and-literature, #federal-open-market-committee, #federal-reserve-system, #leonard-christopher-journalist, #the-lords-of-easy-money-how-the-federal-reserve-broke-the-american-economy-book, #united-states-economy

Stock Market Faces Lingering Perils in 2022

Inflation and the coronavirus did not hold back the stock market last year, but in 2022, investors face new worries.

#asset-allocation-personal-finances, #content-type-service, #coronavirus-omicron-variant, #federal-reserve-system, #interest-rates, #mutual-funds, #standardpoors-500-stock-index, #stocks-and-bonds

Biden Will Nominate Three New Fed Officials

The nominees would bring more diverse leadership to the Fed, which has struggled to expand its ranks.

#appointments-and-executive-changes, #banking-and-financial-institutions, #biden-joseph-r-jr, #cook-lisa-d, #federal-reserve-system, #jefferson-philip, #raskin-sarah-bloom, #regulation-and-deregulation-of-industry, #united-states-economy, #united-states-politics-and-government

CPI December 2021: Inflation Jumped at Fastest Pace Since 1982

The Consumer Price Index increased at the fastest pace in 40 years, a new report showed.

#automobiles, #consumer-price-index, #federal-reserve-system, #inflation-economics, #powell-jerome-h, #prices-fares-fees-and-rates, #shortages, #supply-chain, #united-states-economy

Jerome Powell Says Fed Is Prepared to Raise Rates to Tame Inflation

The Federal Reserve chair is testifying before lawmakers as he seeks Senate confirmation to a second term.

#banking-and-financial-institutions, #federal-reserve-system, #inflation-economics, #powell-jerome-h, #united-states-economy, #united-states-politics-and-government

Richard Clarida Is Resigning From the Fed Early After New Questions on Trades

Richard Clarida, the vice chair of the Federal Reserve, will leave on Friday, two weeks ahead of schedule. Updated disclosures showed rapid moves out of and back into stocks as the central bank prepared to reassure markets.

#clarida-richard-h-1957, #federal-reserve-system

December Jobs Report: U.S. Added 199,000 Jobs

The gain of 199,000 was the weakest of the year, but not for lack of demand: The unemployment rate fell to 3.9 percent, and wages increased.

#coronavirus-omicron-variant, #federal-reserve-system, #hiring-and-promotion, #inflation-economics, #labor-and-jobs, #part-time-employment, #unemployment, #united-states-economy, #wages-and-salaries

The Economic Case for Goldilocks

In 2021, policymakers actually got it mostly right.

#coronavirus-2019-ncov, #federal-reserve-system, #inflation-economics, #interest-rates, #labor-and-jobs, #unemployment

A Fed Official’s 2020 Trade Drew Outcry. It Went Further Than First Disclosed.

Corrected disclosures show that Vice Chair Richard H. Clarida sold a stock fund, then swiftly repurchased it before a big Fed announcement.

#clarida-richard-h-1957, #conflicts-of-interest, #ethics-and-official-misconduct, #federal-reserve-bank-of-dallas, #federal-reserve-system, #kaplan-robert-s, #powell-jerome-h, #rosengren-eric-s, #securities-and-exchange-commission, #stocks-and-bonds

Fed Officials Discussed Raising Rates Sooner and Faster, Minutes Show

Minutes from the Federal Reserve’s December meeting show that officials are contemplating when and how quickly to lift interest rates.

#federal-reserve-system, #inflation-economics, #interest-rates, #united-states-economy

Will Inflation Push Us From Pandemic to Recession?

Inflation unchecked can become a father to extremism.

#banking-and-financial-institutions, #coronavirus-2019-ncov, #credit-and-debt, #federal-reserve-system, #inflation-economics, #interest-rates, #prices-fares-fees-and-rates, #subprime-mortgage-crisis

Fed’s Moves in 2022 Could End the Stock Market’s Pandemic Run

Shares soared as interest rates stayed low and stimulus programs helped the economy. But expected changes could make investors wary.

#banking-and-financial-institutions, #coronavirus-2019-ncov, #coronavirus-aid-relief-and-economic-security-act-2020, #credit-and-debt, #federal-reserve-system, #inflation-economics, #interest-rates, #nasdaq-stock-market, #new-york-stock-exchange, #sp-dow-jones-indices, #stocks-and-bonds, #supply-chain, #united-states-economy

PCE Index Hit Highest Level in November Since 1982

The Fed’s preferred inflation gauge, the Personal Consumption Expenditures index, climbed 5.7 percent in November from a year earlier.

#consumer-confidence-economic-indicator, #federal-reserve-system, #inflation-economics, #labor-and-jobs, #powell-jerome-h, #prices-fares-fees-and-rates, #united-states-economy

How the 2020s Economy Could Resemble the 1980s

It depends on whether Jerome Powell at the Fed can pull a reverse Paul Volcker.

#federal-reserve-system, #inflation-economics, #powell-jerome-h, #reagan-ronald-wilson, #united-states-economy, #volcker-paul-a

What If the Fed Is Wrong About Inflation?

Will we revisit that 1980s show?

#economics-theory-and-philosophy, #federal-reserve-system, #inflation-economics, #internal-sub-only-nl, #powell-jerome-h, #united-states, #united-states-economy, #volcker-paul-a

Inflation Keeps Getting Worse. But Can the Fed Really Rein It In?

Higher interest rates could put a cap on rising costs, but it could also make the economy worse for workers.

#american-families-plan-2021, #biden-joseph-r-jr, #build-back-better, #debatable, #federal-reserve-system, #inflation-economics, #powell-jerome-h, #united-states-economy

Why Jerome Powell Pivoted on Inflation

A surge in wages and benefits got his attention. Other data soon confirmed his concern.

#banking-and-financial-institutions, #federal-reserve-system, #inflation-economics, #interest-rates, #powell-jerome-h, #prices-fares-fees-and-rates, #quantitative-easing, #united-states-economy

Fed Could Raise Rates 3 Times in 2022, Speeds End of Bond-Buying

Federal Reserve officials suggested as many as three interest rate increases in 2022 as the economy heals and inflation persists.

#coronavirus-2019-ncov, #federal-reserve-system, #inflation-economics, #interest-rates, #labor-and-jobs, #powell-jerome-h, #quantitative-easing, #stimulus-economic, #united-states-economy

What Causes Inflation and Should I Worry About It?

What is inflation, why is it up, and who does it hurt? A run through common questions about the ongoing price burst.

#consumer-price-index, #federal-reserve-system, #hitler-adolf, #income-inequality, #inflation-economics, #interest-rates, #onion-the, #real-estate-and-housing-residential, #savings, #shortages, #united-states, #united-states-economy, #wages-and-salaries, #weimar-germany

The Fed Meets Amid Faster Inflation and Prepares to React

The Federal Reserve could announce plans to cut economic support faster, and may signal 2022 rate increases, at its Dec. 14-15 meeting.

#coronavirus-2019-ncov, #federal-reserve-system, #inflation-economics, #interest-rates, #labor-and-jobs, #powell-jerome-h, #quantitative-easing, #united-states-economy

Inflation Worries Say a Lot About You (and May Move Prices)

Age, region, education and income all influence what people think consumer prices will be a few years from now. And that creates a policy puzzle.

#age-chronological, #consumer-behavior, #consumer-price-index, #federal-reserve-bank-of-new-york, #federal-reserve-system, #income, #inflation-economics, #prices-fares-fees-and-rates, #research, #united-states-economy

Take Action Now to Curb Inflation

It’s better to act more aggressively now than wait and risk sparking a recession later.

#banking-and-financial-institutions, #consumer-price-index, #federal-reserve-system, #inflation-economics, #interest-rates, #powell-jerome-h, #united-states-economy

Consumer Prices Rose at Fastest Pace Since 1982

The Consumer Price Index is rising sharply, a concern for Washington policymakers and a sign of the rising costs facing American households.

#biden-joseph-r-jr, #consumer-price-index, #coronavirus-2019-ncov, #factories-and-manufacturing, #federal-reserve-system, #inflation-economics, #powell-jerome-h, #price-gouging, #prices-fares-fees-and-rates, #united-states-politics-and-government, #wages-and-salaries

Here’s Why Inflation Is Worrying Washington

Price gains have moved up sharply for months, but the fact that the trend is lasting and broadening has newly put policymakers on red alert.

#automobiles, #consumer-price-index, #coronavirus-2019-ncov, #federal-reserve-system, #inflation-economics, #pizza, #prices-fares-fees-and-rates, #shortages, #wages-and-salaries

As Omicron Threat Looms, Inflation Limits Fed’s Room to Maneuver

The central bank has spent years guarding against economic blows. Now it is in inflation-fighting mode, even as a potential risk emerges.

#coronavirus-omicron-variant, #federal-reserve-system, #inflation-economics, #interest-rates, #labor-and-jobs, #united-states-economy, #wages-and-salaries

November 2021 Jobs Report: A Gain of 210,000

Employers reported adding 210,000 jobs, the year’s weakest showing, but there were also bright spots. The mixed picture complicated policy prospects.

#biden-joseph-r-jr, #coronavirus-omicron-variant, #federal-reserve-system, #hiring-and-promotion, #inflation-economics, #labor-and-jobs, #labor-department-us, #powell-jerome-h, #prices-fares-fees-and-rates, #unemployment, #united-states-economy, #wages-and-salaries

Why the November Jobs Report Is Better Than It Looks

The number of jobs added was below expectations, but otherwise the report shows an economy on the right track.

#federal-reserve-system, #labor-and-jobs, #quantitative-easing, #shortages, #stimulus-economic, #unemployment

More Sept. 11 Victims Who Sued the Taliban Want Frozen Afghan Funds

The Biden administration was set to tell a court on Friday what it thinks should happen, but obtained a delay until Jan. 28.

#al-qaeda, #federal-reserve-system, #september-11-2001, #suits-and-litigation-civil, #taliban, #united-states-politics-and-government

Powell Says Fed Could Finish Bond-Buying Taper Early

The Federal Reserve could pull back economic support faster as inflation lasts, and its chair signaled that for now the Omicron variant is a “risk.”

#banking-and-financial-institutions, #federal-reserve-system, #inflation-economics, #powell-jerome-h, #quantitative-easing, #senate-committee-on-banking, #stimulus-economic, #united-states-economy, #united-states-politics-and-government

Inflation Worries Dominated the Federal Reserve’s Last Meeting

Some central bank officials suggested a quicker pace of tapering economic stimulus might be needed.

#clarida-richard-h-1957, #daly-mary-c, #federal-reserve-system, #inflation-economics, #quantitative-easing, #united-states-economy

How Softies Seized the Fed

For now, doves rule the roost.

#brainard-lael, #economics-theory-and-philosophy, #federal-reserve-system, #friedman-milton, #inflation-economics, #internal-sub-only-nl, #powell-jerome-h, #recession-and-depression, #unemployment

Biden Will Keep Jerome Powell as Federal Reserve Chair

The White House returned to a longstanding pattern in which presidents reappoint the same leader of the Federal Reserve regardless of partisan identity.

#appointments-and-executive-changes, #biden-joseph-r-jr, #brainard-lael, #federal-reserve-system, #powell-jerome-h, #united-states-economy, #united-states-politics-and-government

Lael Brainard is Tapped For Vice Chair of the Federal Reserve

The longtime Washington insider is now the central bank’s No. 2. That could give her more bandwidth to influence policy.

#appointments-and-executive-changes, #biden-joseph-r-jr, #brainard-lael, #federal-reserve-system, #united-states-politics-and-government

Overheating the Economy Now Could Mean Trouble Later

Now that Jerome Powell has been renominated to head the Federal Reserve, he needs to turn the temperature down.

#biden-joseph-r-jr, #federal-reserve-system, #inflation-economics, #interest-rates, #labor-and-jobs, #powell-jerome-h, #recession-and-depression, #united-states-economy

Powell or Brainard? Why Biden’s Pick to Lead the Fed Matters Now

Joe Biden’s pick to head the Federal Reserve is coming down to Jay Powell or Lael Brainard.

#appointments-and-executive-changes, #banking-and-financial-institutions, #biden-joseph-r-jr, #brainard-lael, #democratic-party, #federal-reserve-system, #greenspan-alan, #inflation-economics, #interest-rates, #manchin-joe-iii, #powell-jerome-h, #united-states-economy, #united-states-politics-and-government, #warren-elizabeth

Inflation Will Hurt Biden’s Spending Plan

Why didn’t they listen?

#american-jobs-plan-2021, #american-rescue-plan-2021, #biden-joseph-r-jr, #consumer-price-index, #democratic-party, #federal-reserve-system, #inflation-economics, #interest-rates, #manchin-joe-iii, #summers-lawrence-h, #united-states, #united-states-economy, #united-states-politics-and-government

How America’s Pandemic Economic Response Fought the Last War

A focus on the challenges of the Great Recession has fueled some of the challenges of this crisis.

#biden-joseph-r-jr, #federal-reserve-system, #inflation-economics, #shortages, #stimulus-economic, #two-thousand-tens-decade, #united-states-economy, #united-states-politics-and-government

October 2021 CPI: Inflation Rose at Fastest Rate Since 1990

The Consumer Price Index rose 6.2 percent in October from a year ago, its fastest increase since 1990. That is bad news for President Biden and the central bank.

#coronavirus-2019-ncov, #federal-reserve-system, #inflation-economics, #prices-fares-fees-and-rates, #shortages, #united-states-economy, #united-states-politics-and-government

Workers’ Pay Is in a Tug of War With Inflation

In the tug of war between wage growth and rising prices, it is not yet clear who is winning. It could matter for the Federal Reserve.

#coronavirus-2019-ncov, #federal-reserve-system, #inflation-economics, #labor-and-jobs, #prices-fares-fees-and-rates, #productivity, #united-states-economy, #wages-and-salaries

Federal Reserve Announces Plan to Slow Bond Buying Program

The Federal Reserve is dealing with high inflation at a time when millions of workers remain on the job market’s sidelines.

#banking-and-financial-institutions, #coronavirus-2019-ncov, #federal-reserve-system, #inflation-economics, #interest-rates, #labor-and-jobs, #powell-jerome-h, #prices-fares-fees-and-rates, #united-states-economy

What to watch at the Fed’s meeting Wednesday.

The Federal Reserve is expected to announce plans at 2 p.m. Wednesday to slow its bond buying while leaving interest rates near zero. But the focus is on what comes next.

#banking-and-financial-institutions, #federal-open-market-committee, #federal-reserve-system, #inflation-economics, #interest-rates, #powell-jerome-h, #prices-fares-fees-and-rates, #quantitative-easing, #shortages, #stimulus-economic, #united-states-economy

As the Fed Prepares to Slow Support, Attention Shifts to Rate Increases

The Federal Reserve is expected to announce a plan to taper off its bond buying. With inflation surging, economists’ eyes are already turning to rates.

#federal-reserve-system, #inflation-economics, #interest-rates, #labor-and-jobs, #powell-jerome-h, #prices-fares-fees-and-rates, #stimulus-economic, #united-states, #united-states-economy

Banks Tried to Kill Crypto and Failed. Now They’re Embracing It (Slowly).

Digital payments technology is forcing the financial system to evolve. Banks feel their power waning and want to regain control.

#american-bankers-assn, #bank-of-america-corporation, #bank-of-new-york-mellon-corporation, #banking-and-financial-institutions, #bitcoin-currency, #blockchain-technology, #cohen-h-rodgin, #currency, #dimon-james, #el-salvador, #federal-reserve-system, #jpmorgan-chasecompany, #montag-thomas-k, #moynihan-brian-t, #new-york-city, #northern-trust-corporation, #office-of-the-comptroller-of-the-currency, #sullivancromwell, #us-bancorp, #us-dollar-currency, #virtual-currency

The Bond Market Says Inflation Will Last. You Should Be Listening.

Inflation is as much a psychological process as an economic one. And a key indicator of inflation expectations has risen in recent days, which could ultimately lead to higher interest rates.

#federal-reserve-system, #inflation-economics, #interest-rates, #powell-jerome-h, #quantitative-easing, #stocks-and-bonds, #united-states-economy

Biden Needs to Diversify the Fed’s Leadership

President Biden has a chance to overhaul the stale culture of central banking.

#appointments-and-executive-changes, #bank-of-japan, #banking-and-financial-institutions, #bernanke-ben-s, #biden-joseph-r-jr, #federal-reserve-system, #greenspan-alan, #jpmorgan-chasecompany, #morgan-stanley, #powell-jerome-h, #regulation-and-deregulation-of-industry, #securities-and-exchange-commission, #stocks-and-bonds, #united-states-economy