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Tag: Monetary Policy

Federal Reserve Governor Miran Dissent: Current Policy Too Restrictive, Advocates for Substantial Rate Cut

Federal Reserve Governor Miran Dissent: Current Policy Too Restrictive, Advocates for Substantial Rate Cut

Federal Reserve Governor Miran Dissent: Current Policy Too Restrictive, Advocates for Substantial Rate Cut Federal Reserve Governor Miran has publicly articulated a dissenting view on current monetary policy, arguing that the federal funds rate is “very restrictive” and poses “material risks” to the Fed’s employment mandate. Speaking recently, Miran stated his belief that the appropriate fed funds rate should be in the mid-2 percent area, nearly two percentage points lower than the current policy. Miran’s analysis, presented in his first…

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US Federal Reserve Cuts Key Interest Rate to 4.00-4.25%, Future Path Uncertain Amidst Divided Views

US Federal Reserve Cuts Key Interest Rate to 4.00-4.25%, Future Path Uncertain Amidst Divided Views

US Federal Reserve Cuts Key Interest Rate to 4.00-4.25%, Future Path Uncertain Amidst Divided Views The Federal Reserve has once again lowered its benchmark interest rate, bringing it to a range of 4.00% to 4.25% following its mid-September meeting. This quarter-point reduction, largely anticipated due to signs of a weakening job market, marks a significant move after the central bank had held rates steady for most of the year, following aggressive cuts in late 2024. While the rate cut itself…

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Fed’s Rate Cut Deemed ‘More Hawkish Than Anticipated’ Amid Stagflation Fears, Economist Zandi Warns

Fed’s Rate Cut Deemed ‘More Hawkish Than Anticipated’ Amid Stagflation Fears, Economist Zandi Warns

Fed’s Rate Cut Deemed ‘More Hawkish Than Anticipated’ Amid Stagflation Fears, Economist Zandi Warns The Federal Reserve delivered a quarter-point interest rate cut this week, bringing the benchmark federal funds rate to a range of 4% to 4.25%. However, leading economist Mark Zandi of Moody’s Analytics warns that the move carries a “more hawkish” signal than markets had anticipated, suggesting it may not be enough to avert looming economic risks. Speaking to Fortune, Zandi characterized the Fed’s messaging as a…

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Fed Rate Cut Paves Way for Broader Asian Easing Amid Global Trade Tensions

Fed Rate Cut Paves Way for Broader Asian Easing Amid Global Trade Tensions

Fed Rate Cut Paves Way for Broader Asian Easing Amid Global Trade Tensions The Federal Reserve’s recent quarter-point interest rate cut this Wednesday is poised to trigger a new wave of monetary easing across Asia, as the region grapples with persistent trade headwinds and currency pressures. The move, which lowered the Fed’s benchmark overnight lending rate to 4%-4.25%, was characterized by Chair Jerome Powell as a “risk management cut,” with signals pointing to two more reductions this year. This latest…

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Fed Rate Cut: What it Means for Mortgages, Credit Cards, Car Loans – Syracuse.com

Fed Rate Cut: What it Means for Mortgages, Credit Cards, Car Loans – Syracuse.com

Fed Rate Cut: What it Means for Mortgages, Credit Cards, Car Loans – Syracuse.com NEW YORK (AP) — The Federal Reserve cut its benchmark interest rate Wednesday for the first time in nine months. Since the last cut, progress on inflation has slowed while the labor market has cooled. That means Americans are dealing with both high prices and a challenging job market. The federal funds rate, set by the Federal Reserve, is the rate at which banks borrow and…

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US Federal Reserve Slashes Rates by 50 BPS, Signals Further Cuts Amid Economic Shift

US Federal Reserve Slashes Rates by 50 BPS, Signals Further Cuts Amid Economic Shift

US Federal Reserve Slashes Rates by 50 BPS, Signals Further Cuts Amid Economic Shift In a pivotal move signaling a significant shift in monetary policy, the US Federal Reserve cut its benchmark interest rate by 50 basis points on Wednesday, marking the first reduction in four years. This decision moves the federal funds rate target to between 4.75% and 5%, stepping back from an aggressive stance aimed at curbing inflation. Policymakers also indicated expectations for an additional 50 basis point…

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Federal Reserve Cuts Rates Today, Political Divisions Emerge on Future Policy

Federal Reserve Cuts Rates Today, Political Divisions Emerge on Future Policy

Federal Reserve Cuts Rates Today, Political Divisions Emerge on Future Policy The Federal Reserve today announced a quarter-percentage-point cut to its overnight borrowing rate, bringing the federal funds rate down by 25 basis points. This widely anticipated decision emerged from the Federal Open Market Committee (FOMC) meeting, which also saw officials release their updated economic forecasts and the closely watched “dot plot” outlining future rate expectations. The meeting, however, was marked by significant political intrigue and internal dissent. New Fed…

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Federal Reserve Poised for Rate Cut Amidst Unprecedented Political Scrutiny

Federal Reserve Poised for Rate Cut Amidst Unprecedented Political Scrutiny

Federal Reserve Poised for Rate Cut Amidst Unprecedented Political Scrutiny The Federal Reserve concludes its pivotal two-day policy meeting today, with central bankers widely expected to announce their first interest rate cut since December. This move aims to bolster America’s slowing labor market amidst an extraordinary backdrop of political pressure and internal board controversies, particularly concerning the potential limited impact of President Donald Trump’s tariffs on inflation. Adding to the unprecedented nature of this gathering is President Trump’s aggressive push…

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Fed Kicks Off Critical Meeting Amid Political Turmoil and Economic Crossroads

Fed Kicks Off Critical Meeting Amid Political Turmoil and Economic Crossroads

Fed Kicks Off Critical Meeting Amid Political Turmoil and Economic Crossroads WASHINGTON – The Federal Reserve commenced its high-stakes two-day policy meeting today, September 16th, under an extraordinary cloud of political pressure and economic uncertainty. The central bank is poised to make a crucial decision on interest rates, with investors widely expecting a quarter-point cut on Wednesday, but the path forward is fraught with internal divisions and external demands. The meeting’s start follows a tumultuous lead-up, including the Senate’s narrow…

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Global Markets Brace for Imminent Central Bank Interest Rate Decisions, First US Cut of 2025 Anticipated

Global Markets Brace for Imminent Central Bank Interest Rate Decisions, First US Cut of 2025 Anticipated

Global Markets Brace for Imminent Central Bank Interest Rate Decisions, First US Cut of 2025 Anticipated The financial world is on high alert this week as major central banks worldwide are poised to make critical interest rate decisions. Analysts and investors are keenly watching for what could be the first US interest rate cut since Donald Trump’s return to the presidency, a move expected to dominate headlines. This intense 36-hour period of policy-setting begins with the Bank of Canada, followed…

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Global Central Banks Set for Historic Week: Fed Rate Cut Leads Worldwide Policy Shifts

Global Central Banks Set for Historic Week: Fed Rate Cut Leads Worldwide Policy Shifts

Global Central Banks Set for Historic Week: Fed Rate Cut Leads Worldwide Policy Shifts The global financial landscape is on the brink of a pivotal week, with central banks worldwide poised to make critical interest rate decisions. The spotlight intensifies on the United States, where the Federal Reserve is widely anticipated to deliver its first interest rate cut of 2025, a move with significant implications for global markets and borrowing costs. The flurry of activity kicks off with the Bank…

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Investors Brace for Fed Rate Cut Amidst $14 Trillion Stock Surge

Investors Brace for Fed Rate Cut Amidst $14 Trillion Stock Surge

Investors Brace for Fed Rate Cut Amidst $14 Trillion Stock Surge The US stock market is poised for a pivotal moment next week, with investors keenly awaiting the Federal Reserve’s upcoming monetary policy meeting. A massive $14 trillion rally has already propelled stocks to record highs, largely fueled by strong expectations that the Fed will resume cutting interest rates. A 25-basis point reduction on Wednesday is widely anticipated, seen by many as a certainty. The S&P 500 Index has surged…

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Federal Court Blocks Trump’s Bid to Fire Fed Governor Lisa Cook, Upholding Central Bank’s Independence

Federal Court Blocks Trump’s Bid to Fire Fed Governor Lisa Cook, Upholding Central Bank’s Independence

Federal Court Blocks Trump’s Bid to Fire Fed Governor Lisa Cook, Upholding Central Bank’s Independence A federal court on Tuesday delivered a significant setback to former President Donald Trump’s attempts to exert greater control over the Federal Reserve, ruling that Governor Lisa Cook can remain in her position while she fights his efforts to remove her. U.S. District Judge Jia Cobb granted Cook’s request for a preliminary injunction, effectively blocking her firing as the legal dispute proceeds through the courts….

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Trump-Era Fed Nominee’s Stance on Independence Resurfaces as Economic Debate Continues

Trump-Era Fed Nominee’s Stance on Independence Resurfaces as Economic Debate Continues

Trump-Era Fed Nominee’s Stance on Independence Resurfaces as Economic Debate Continues While the original report on Stephen Miran’s controversial remarks regarding Federal Reserve independence during his Senate confirmation hearing under then-President Donald Trump dates back several years, the underlying debate about the central bank’s autonomy remains highly relevant in today’s economic climate. Miran, nominated by Trump to the Federal Reserve Board, stated at his hearing that he would retain his White House employment even if confirmed, raising immediate alarms about…

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Judge Delays Ruling in High-Stakes Legal Challenge Over Trump’s Firing of Fed Governor Lisa Cook

Judge Delays Ruling in High-Stakes Legal Challenge Over Trump’s Firing of Fed Governor Lisa Cook

Judge Delays Ruling in High-Stakes Legal Challenge Over Trump’s Firing of Fed Governor Lisa Cook A U.S. District Judge has deferred an immediate ruling on President Donald Trump’s unprecedented attempt to remove Federal Reserve Governor Lisa Cook, instead ordering both parties to submit additional written arguments by next Tuesday. The decision, following a more than two-hour emergency court hearing yesterday morning, prolongs the high-stakes legal battle that has significant implications for the Federal Reserve’s independence. Judge Jia Cobb, overseeing the…

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Escalating Fed Tensions: Trump Demands Lisa Cook’s Resignation Amidst Mortgage Fraud Claims

Escalating Fed Tensions: Trump Demands Lisa Cook’s Resignation Amidst Mortgage Fraud Claims

Escalating Fed Tensions: Trump Demands Lisa Cook’s Resignation Amidst Mortgage Fraud Claims Washington D.C. is abuzz as former President Donald Trump on Wednesday publicly demanded the resignation of Federal Reserve Governor Lisa Cook, following accusations of mortgage fraud. This latest move marks a significant escalation in Trump’s ongoing efforts to assert greater control over the nation’s central bank. The call for Cook’s ouster stems from allegations made by Bill Pulte, director of the agency overseeing mortgage giants Fannie Mae and…

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Powell’s Jackson Hole Speech: Rate Cut Hopes Fade as Economic Data Shifts

Powell’s Jackson Hole Speech: Rate Cut Hopes Fade as Economic Data Shifts

Powell’s Jackson Hole Speech: Rate Cut Hopes Fade as Economic Data Shifts Markets are bracing for Federal Reserve Chair Jerome Powell’s highly anticipated speech at the Jackson Hole Symposium later this week, with expectations for a clear signal on interest rate cuts now significantly dampened. Despite earlier market certainty, recent economic data is challenging the narrative of an imminent September rate reduction. Just a week ago, futures markets priced in over a 95% chance of a September rate cut. However,…

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Wall Street on Edge: Powell’s Jackson Hole Speech Looms Amid Rate Cut Uncertainty

Wall Street on Edge: Powell’s Jackson Hole Speech Looms Amid Rate Cut Uncertainty

Wall Street on Edge: Powell’s Jackson Hole Speech Looms Amid Rate Cut Uncertainty All eyes are on Federal Reserve Chairman Jerome Powell as he prepares to deliver his highly anticipated speech this Friday at the annual Jackson Hole central bank conference in Wyoming. Market participants are keenly awaiting any signals regarding the future trajectory of U.S. monetary policy, particularly the widely expected resumption of interest rate cuts. Wall Street has largely priced in a September rate cut, following months of…

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US Treasury Secretary Scott Bessent Demands Steep Fed Rate Cuts, Hints at Broad Export Tax

US Treasury Secretary Scott Bessent Demands Steep Fed Rate Cuts, Hints at Broad Export Tax

US Treasury Secretary Scott Bessent Demands Steep Fed Rate Cuts, Hints at Broad Export Tax US Treasury Secretary Scott Bessent has intensified pressure on the Federal Reserve, reiterating his call for a significant half-point interest rate reduction at the central bank’s upcoming September meeting. Bessent advocated for a series of further rate cuts, arguing that the Fed’s benchmark rate should be at least 1.5 percentage points lower than its current target range of 4.25% to 4.5%, maintained since their July…

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Weak Jobs Data Intensifies Calls for Fed Rate Cuts Ahead of September Meeting

Weak Jobs Data Intensifies Calls for Fed Rate Cuts Ahead of September Meeting

Weak Jobs Data Intensifies Calls for Fed Rate Cuts Ahead of September Meeting A prominent Federal Reserve official is intensifying calls for interest rate cuts, citing the recent weaker-than-expected U.S. jobs report as strong justification. Michelle Bowman, who recently dissented in favor of lowering rates, stated Saturday that the latest labor market data reinforces her belief that the Fed should implement three rate cuts this year. The jobs report, released just days after the Fed’s last meeting where rates were…

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Trump Narrows Fed Chair Search as Scott Bessent Withdraws, Eyes New Appointments Amidst Tariff Deadline

Trump Narrows Fed Chair Search as Scott Bessent Withdraws, Eyes New Appointments Amidst Tariff Deadline

Trump Narrows Fed Chair Search as Scott Bessent Withdraws, Eyes New Appointments Amidst Tariff Deadline President Donald Trump has confirmed that Treasury Secretary Scott Bessent is no longer under consideration to replace Jerome Powell as Federal Reserve Chair. Trump stated in a recent interview, “I love Scott, but he wants to stay where he is,” indicating Bessent’s preference to remain in his current role. The President is now reportedly evaluating former Fed governor Kevin Warsh, top White House economist Kevin…

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Trump Escalates Pressure on Fed’s Powell Over ‘Ostentatious’ HQ Renovation

Trump Escalates Pressure on Fed’s Powell Over ‘Ostentatious’ HQ Renovation

Trump Escalates Pressure on Fed’s Powell Over ‘Ostentatious’ HQ Renovation President Donald Trump is intensifying his campaign against Federal Reserve Chairman Jerome Powell, shifting focus to the central bank’s headquarters renovation plans as a new avenue for pressure. The latest development saw Russ Vought, Trump’s top budget adviser, send a letter to Powell, expressing the president’s “extreme trouble” over potential violations of government building rules with an “ostentatious overhaul.” This move follows Trump’s recent appointment of close aides James Blair…

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JP Morgan CEO Jamie Dimon Defends Fed Independence Amid Trump’s Intensified Attacks and Succession Talks

JP Morgan CEO Jamie Dimon Defends Fed Independence Amid Trump’s Intensified Attacks and Succession Talks

JP Morgan CEO Jamie Dimon Defends Fed Independence Amid Trump’s Intensified Attacks and Succession Talks Jamie Dimon, CEO of JP Morgan Chase, has strongly defended the Federal Reserve’s independence, calling it “absolutely critical” amidst escalating pressure from Donald Trump for immediate interest rate cuts. Dimon’s comments were made as the White House confirmed it has already initiated a process to select a successor for current Fed Chair Jerome Powell, despite his term not concluding until May next year. Trump has…

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Jamie Dimon Warns on Federal Reserve Independence Amid Renewed Trump Pressure on Jay Powell

Jamie Dimon Warns on Federal Reserve Independence Amid Renewed Trump Pressure on Jay Powell

Jamie Dimon Warns on Federal Reserve Independence Amid Renewed Trump Pressure on Jay Powell JPMorgan Chase CEO Jamie Dimon has reportedly issued a stark warning regarding the critical independence of the Federal Reserve, citing what he perceives as ongoing pressure from former President Donald Trump on current Fed Chair Jay Powell. Dimon’s comments underscore the deep-seated concerns within financial circles about safeguarding the central bank’s autonomy from political interference. The integrity of the Federal Reserve’s decision-making process is considered vital…

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Bank of England Poised for Rate Cuts Amid Economic Slowdown, Governor Confirms

Bank of England Poised for Rate Cuts Amid Economic Slowdown, Governor Confirms

Bank of England Poised for Rate Cuts Amid Economic Slowdown, Governor Confirms The Bank of England is signalling a strong likelihood of interest rate reductions, with Governor Andrew Bailey indicating a “downward” path for rates, particularly if the job market shows further signs of slowing. This comes ahead of the Bank’s crucial next policy meeting on August 7th, where rates, currently at 4.25%, will be reviewed. In a recent interview, Bailey expressed his conviction that interest rates are headed lower,…

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Federal Reserve Signals Potential July Interest Rate Cut Amid Economic Shifts

Federal Reserve Signals Potential July Interest Rate Cut Amid Economic Shifts

Federal Reserve Signals Potential July Interest Rate Cut Amid Economic Shifts Federal Reserve Chairman Jay Powell has indicated a willingness to consider a reduction in the benchmark US interest rate as early as this July. This signal comes as financial markets closely monitor economic indicators and inflation trends, anticipating potential shifts in monetary policy. While the full scope of Powell’s comments and the detailed rationale behind this potential move are reserved for subscribers, the headline alone suggests a significant development…

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Traders Position for Rate Cuts Under Next Fed Chair

Traders Position for Rate Cuts Under Next Fed Chair

Traders Position for Rate Cuts Under Next Fed Chair Financial markets are actively positioning for potential interest rate cuts, with significant speculation centered on the monetary policy direction under Federal Reserve Chair Jay Powell’s eventual successor. As the end of Powell’s current term approaches, traders are making early bets, anticipating a dovish shift or a continuation of current strategies from the next leader of the U.S. central bank. This forward-looking sentiment underscores the market’s focus on future leadership and its…

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Donald Trump Pledges to Appoint Only Fed Chair Committed to Interest Rate Cuts

Donald Trump Pledges to Appoint Only Fed Chair Committed to Interest Rate Cuts

Donald Trump Pledges to Appoint Only Fed Chair Committed to Interest Rate Cuts Former President Donald Trump has publicly declared that any future appointment he makes for the position of Federal Reserve Chair would be conditional on the nominee’s commitment to cutting interest rates. This statement signals a clear intent regarding monetary policy should he return to office, emphasizing a desire for lower borrowing costs and potentially setting the stage for a contentious relationship with the central bank, which traditionally…

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