Tag: Fed
-
Dozens of retailers jacked up interest rates on store cards ahead of Fed cuts
Dozens of the largest U.S. retailers and their bank partners jacked up interest rates on their store-branded cards to record highs in the months before the Federal Reserve began cutting rates, as the companies looked to pad profits during a stretch of sluggish sales. At least 50 companies — including Big Lots, Gap, Petco, Burlington, Macy’s and TJX Companies — increased the APRs on their credit…
-
Trump and Fed Chair Powell could be set on a collision course over interest rates
President-elect Donald Trump and Federal Reserve Chair Jerome Powell could be on a policy collision course in 2025 depending on how economic circumstances play out. Should the economy run hot and inflation flare up again, Powell and his colleagues could decide to tap the brakes on their efforts to lower interest rates. That in turn could infuriate Trump, who…
-
Fed Governor Waller sees need for ‘more caution’ ahead when lowering interest rates
Federal Reserve Governor Christopher Waller on Monday signaled that future interest rate cuts will be less aggressive than the big move in September as he expressed concern that the economy could still be running at a hotter-than-desired pace. Citing recent reports on employment, inflation, gross domestic product and income, the policymaker indicated that “the data is…
-
The Fed is finally cutting rates, but banks aren’t in the clear just yet
Falling interest rates are usually good news for banks, especially when the cuts aren’t a harbinger of recession. That’s because lower rates will slow the migration of money that’s happened over the past two years as customers shifted cash out of checking accounts and into higher-yielding options like CDs and money market funds. When the Federal Reserve cut…
-
Powell indicates further, smaller rate cuts, insists the Fed is ‘not on any preset course’
Federal Reserve Chair Jerome Powell said Monday that the recent half percentage point interest rate cut shouldn’t be interpreted as a sign that future moves will be as aggressive, in fact indicating the next moves will be smaller. The central bank chief asserted during a speech in Nashville, he and his colleagues will seek to…
-
Key Fed inflation gauge at 2.2% in August, lower than expected
Inflation moved closer to the Federal Reserve’s target in August, easing the way for future interest rate cuts, the Commerce Department reported Friday. The personal consumption expenditures price index, a gauge the Fed focuses on to measure the cost of goods and services in the U.S. economy, rose 0.1% for the month, putting the 12-month inflation…
-
The Fed slashed interest rates last week, but Treasury yields are rising. What’s going on?
With its larger-than-normal cut last week, the Federal Reserve sent a clear message that interest rates are heading considerably lower in the future. The Treasury market, though, hasn’t been paying attention. Despite the Fed approving a half percentage point reduction in its baseline short-term borrowing rate, Treasury yields instead have been moving higher, particularly at the long…
-
Minneapolis Fed President Kashkari sees a slower pace of rate cuts ahead
Minneapolis Federal Reserve President Neel Kashkari said Monday that he expects policymakers to dial down the pace of interest rate cuts after last week’s half percentage point reduction. “I think after 50 basis points, we’re still in a net tight position,” Kashkari said in a CNBC “Squawk Box” interview. “So I was comfortable taking a…
-
Fed interest rate cut expected and global trail behind Hezbollah pager explosions: Morning Rundown
A long-awaited interest rate cut is expected today. The mystery behind the origins of the exploding Hezbollah pagers deepens. And Sean “Diddy” Combs’ team will argue again for his release as he awaits a sex trafficking trial. Here’s what to know today. Fed expected to cut key interest rate Chair of the U.S. Federal Reserve…
-
A Fed rate cut is coming. How big is anyone’s guess.
The Federal Reserve is poised to cut its key interest rate Wednesday, the first time since the onset of the Covid-19 pandemic that it has pushed it lower. A reduction to the central bank’s federal funds rate serves as a benchmark for other borrowing costs throughout the economy. And while that move has been widely…