Rising Rents Stoke Inflation Data, a Concern for Washington

Economic policymakers have said inflation will prove temporary, but rising rents may challenge that view and pressure Washington to react. Terrell McCallum, a private wealth adviser in Dallas, spends a lot of time thinking about markets and interest rates. He knows that the Federal Reserve targets 2 percent annual price increases on average, so it […]

Fed Minutes September 2021: Officials Worried About Supply Chains

Federal Reserve officials were preparing to begin slowing down monetary policy support as soon as the middle of November, minutes from their September meeting showed, and policymakers debated when they might need to raise rates amid rising inflation risks. The Fed has been buying $120 billion in bonds each month and holding the federal funds […]

September Consumer Price Index: Inflation Rises

Consumer prices jumped more than expected last month, with food, rent and furniture costs surging as a limited supply of housing and a shortage of goods tied to supply chain troubles combined to fuel rapid inflation. The Consumer Price Index climbed 5.4 percent in September when compared with the prior year, more than expected in […]

Inflation Expectations Climb, Dogging Federal Reserve Officials

A key measure of inflation expectations released on Tuesday showed continued acceleration, a survey that came as Richard H. Clarida, the Federal Reserve’s vice chair, indicated that central bankers were alert to the risk of high inflation. The combination underscored that the threat of a longer period of rising prices has become more pronounced. Speaking […]

David Card, Joshua Angrist and Guido Imbens Win Nobel in Economics 2021

David Card has made a career of studying unintended experiments to examine economic questions — like whether raising the minimum wage causes people to lose jobs. Joshua D. Angrist and Guido W. Imbens have developed research tools that help economists to use real-life situations to test big theories, like how additional education affects earnings. On […]

Weak employment and rising prices are raising the stakes for the Fed.

The disappointing payrolls report for September came at a high-pressure moment for the central bank, as it balances inflation with missing jobs. Federal Reserve officials received bad news in the September jobs report, which showed weak hiring and stagnating participation in the labor force — signs that the labor market will take time to heal. […]

Fed’s Brainard signals that climate change guidance may be coming for big banks.

Lael Brainard, a Federal Reserve governor, offered the clearest signal yet that America’s central bank is going to begin seriously assessing big banks’ exposure to climate-related financial risks. Ms. Brainard said the Fed is in the process of developing climate-related scenarios for use in bank’s safety checkups, which are often called stress tests. She also […]

Elizabeth Warren Calls for an Insider Trading Inquiry at the Fed

The Democratic Senator called for an investigation after news that the Fed’s vice chair shifted toward stocks shortly before a policy announcement last year. Senator Elizabeth Warren, Democrat of Massachusetts, on Monday called for an investigation into whether top Federal Reserve officials engaged in insider trading in 2020, when some bought and sold securities that […]

Inflation Climbs at Fastest Pace in 30 Years as Supply Chain Snarls Linger

Inflation, once expected to fade quickly, is proving more stubborn. That ramps up tension among officials as they wait for pressures to fade. The Federal Reserve’s preferred gauge of inflation climbed in August at the quickest pace in 30 years, data released on Friday showed, keeping policymakers on edge as evidence mounts that rapidly rising […]

Inflation Climbs at Fastest Pace in 30 Years as Supply Chain Snarls Linger.

The Federal Reserve’s preferred inflation gauge accelerated in August, keeping the pressure on economic policymakers who are watching warily as supply chain issues and commodity costs threaten to keep price gains elevated for longer than they had expected. The Personal Consumption Expenditures index continued to climb at its fastest pace since 1991, rising by 4.3 […]

Elizabeth Warren Calls Jerome Powell a ‘Dangerous Man’

Senator Elizabeth Warren, Democrat of Massachusetts, blasted the Federal Reserve chair, Jerome H. Powell, for his financial regulation track record and said that she would not support him if the White House renominated him, calling him a “dangerous man to head up the Fed.” Mr. Powell’s term as head of the central bank ends in […]

Kaplan and Rosengren, Fed Presidents Under Fire for Trades, Will Step Down

Robert S. Kaplan will exit his role as head of the Federal Reserve Bank of Dallas next month. Eric S. Rosengren, the head of the Federal Reserve Bank of Boston, is also retiring earlier than planned. Eric S. RosengrenSteven Senne/Associated Press Robert S. KaplanAnn Saphir/Reuters Two Federal Reserve officials embroiled in controversy for trading securities […]

Rosengren, Boston Fed President Under Fire for Trades, Will Retire Early

A Federal Reserve Bank president who recently came under fire for securities trading he engaged in last year, when the central bank was active in rescuing financial markets from the pandemic crisis, said he would retire nine months ahead of schedule. Eric S. Rosengren, who is president of the Federal Reserve Bank of Boston, will […]

Jerome Powell says the Fed is reviewing its trading rules.

The Federal Reserve chair, Jerome H. Powell, said on Wednesday that the central bank’s rules governing the types of assets that Fed officials can invest in would need to be updated, noting that the rules are “clearly seen as not adequate to the task of really sustaining the public’s trust in us.” His comments, at […]

Federal Reserve Signals a Shift Away From Pandemic Support

The Fed said it could soon slow its large-scale purchases of government-backed bonds and indicated it might raise interest rates in 2022. Federal Reserve officials indicated on Wednesday that they expect to soon slow the asset purchases they have been using to support the economy and predicted they might raise interest rates next year, sending […]

Why Washington Worries About Stablecoins

Stablecoins might be the most ironically named innovation of the cryptocurrency era, at least in the eyes of many Washington regulators and policymakers. These digital currencies promise to maintain their value, which is generally pegged to a government currency like the dollar or euro, by relying on stable financial backing like bank reserves and short-term […]