The Federal Reserve (fed) of the United States raised its benchmark interest rates for the first time since 2018, to fight the inflationwhich reached a 40-year high in the United States. This first rate increase was moderate, by a quarter of a percentage point, to take them to a range of 0.25% to 0.50%after inflation […]
Tag: Fed
Fed stance on rates balances fight against inflation and unknowns of the pandemic, according to Barkin
The rate hikes projected by Fed officials this week represented a “balancing act” between the need to start normalizing monetary policy in the face of high inflation and protection against a rapid credit tightening that could hurt the economy, Richmond Fed President Thomas Barkin said. “The rate path we announced this week should not drive […]
Bullard explains his dissent at the Fed by arguing that rates should exceed 3% this year
Updated on 03/18/2022 11:42 am St. Louis Fed President James Bullard has called for a sharp increase in the Fed’s interest rate to more than 3% this year, a step he sees as necessary to catch up with burdensome inflation.particularly heavy” for families. In a statement explaining his disagreement with the approval of the Federal […]
Bond traders sound alarm bells on post-Fed growth
Unlike their stock market counterparts, Treasury traders don’t believe Jerome Powell’s upbeat statements about the economy. In fact, a bond market indicator began flashing red for the first time since the darkest days of the pandemic. After the Federal Reserve raised interest rates on Wednesday and pointed to hikes at the remaining six meetings this […]
The Fed Does Nothing But Guess About Rates
By Allison Schrager Just as the world aspires to normality after two harrowing years of the pandemic, the Federal Reserve seeks a neutral monetary policy that will stop inflation without triggering a recession. But finding neutral on the economy’s shift lever can be as difficult as defining normalcy these days. Monetary policy is much less […]
FED rate hike will not severely impact the Peruvian economy
The long-announced and long-awaited rise in the benchmark interest rate of the Federal Reserve from United States this last March 16 was finalized, after several delays. In this way, the Federal Open Market Committee (FOMC) of the US central bank decided to increase the reference operation percentage by a quarter of a point to bring […]
The Fed will seek a “soft landing” for the US economy.
The Federal Reserve (Fed) will meet tomorrow (Wednesday) with one of the most difficult tasks that a central bank can face: raising interest rates enough to cool inflation, but not so much that the economy falls into recession. . At a time when the war is spreading in Europe and inflation in United States reaches […]
Mohamed El-Erian: Fed faces self-created political dilemma
The Federal Reserve is in a deep self-made hole as its top policy committee meets this week to announce the start of a long-awaited cycle of interest rate hikes. Inflation is at its highest point in 40 years and continues to accelerate, the Fed’s credibility in fighting inflation is damaged and it has lost control […]
Fed ready to raise rates and surf between inflation and recession
For the US central bank, the big moment has arrived: on Wednesday the institution is expected to raise its reference interest rates to fight inflation, two years after taking them to zero to help the economy facing COVID-19, and while the war in Ukraine creates new uncertainties. The objective of the Fed is to pressure […]
The Fed would already be ready to increase reference interest rates to face inflation
As the war in Ukraine creates new uncertainties, the US central bank could raise its benchmark interest rates this Wednesday to fight inflation, two years after taking them to zero to help the economy faced with the crisis. COVID-19. The Fed’s goal is to pressure commercial banks to offer their customers higher interest rates on […]