In light of elevated inflation pressures and further improvements in the labor market, Federal Open Market Committee members decided in December to further reduce the monthly pace of the Federal Reserve’s net asset purchases. In minutes from the group’s Dec. 14-15 meeting released today, members remarked that that a quicker conclusion of net asset purchases would better position the committee “to set policy to address the full range of plausible economic outcomes.”
Browsing: Interest rates
The Federal Reserve will accelerate its planned tapering of Treasury securities and mortgage-backed securities purchases, according to the latest Federal Open Market Committee statement issued today.
Headline inflation surged to 6.2% in October, yet the federal funds rate remains near-zero. As a result, the real interest rate in the U.S. (the difference between inflation and the nominal rates set by central banks) is at its lowest level in decades, -5.97%.
A coalition of financial trade groups including ABA today urged Senate Banking Committee members to reject any legislative proposal that would impose a national fee and interest rate cap of 36%, noting that such a cap would create barriers to credit access for consumers.
The Federal Reserve is focused on addressing “long-standing disparities” in unemployment, “because they weigh on the productive capacity of our economy,” Federal Reserve Chairman Jerome Powell said today during remarks at an industry event.
With the FDIC’s new rules on brokered deposits and interest rate restrictions now in effect,…
Small and medium-sized banks could face stress from defaults on loans to small business and commercial real estate if consumers continue to avoid traveling and shopping, the Federal Open Market Committee said today.
As the coronavirus pandemic continues to cause tremendous human and economic hardship across the country the Federal Reserve will aim to achieve inflation “moderately above 2% for some time” the Federal Open Market Committee said today.
Certain segments of the economy were beginning to show improvement in recent days, but the trajectory of the economy overall will continue to depend on the course of the coronavirus, according to minutes from the most recent Federal Open Market Committee meeting released today.