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Federal Reserve

All articles tagged with #federal reserve

Fed Seeks Public Comment on Codifying Debanking Protections in Bank Supervision
business1 day ago

Fed Seeks Public Comment on Codifying Debanking Protections in Bank Supervision

The Federal Reserve Board requests comment on a proposal to codify the removal of reputation risk from its supervision of banks, reaffirming that institutions should not be pressured to debank customers for lawful activities or political views. This builds on June’s decision to exclude reputation risk from examinations and aims to ensure supervisory decisions are based on material financial risk, with increased clarity in decision making; the 60-day comment period runs after publication in the Federal Register.

Markets slide as tariff hikes and AI fears weigh on stocks
business2 days ago

Markets slide as tariff hikes and AI fears weigh on stocks

U.S. stocks fell after President Trump raised tariffs to 15% for up to 150 days, with the S&P 500 down about 1% and the Dow slumping around 821 points as investors also punished companies viewed as AI losers. Tech and cybersecurity names like CrowdStrike and AppLovin led declines, while Blue Owl Capital slid; airlines dropped on winter weather disruptions and Novo Nordisk tumbled after a drug-trial result. Gold rose and bitcoin briefly dipped as risk sentiment shifted, and traders awaited Nvidia’s results while Federal Reserve commentary kept rate-cut expectations in play. The 10-year Treasury yield slipped to 4.03%.

Waller Warns of Mixed Labor Signals as Fed Weighs March Move
economy2 days ago

Waller Warns of Mixed Labor Signals as Fed Weighs March Move

Fed Governor Christopher Waller says January’s strong payrolls may be noise in a year that already showed weak job creation in 2025; underlying inflation sits near the 2% goal once tariff effects are stripped out, with tariffs likely having only a temporary impact. GDP is expected to grow above 2% in early 2026, but the next February data will determine whether the Fed holds rates or cuts 25 basis points at the March meeting, amid tariff uncertainty and a Supreme Court ruling that could influence near‑term prices.

December inflation ticks up again, keeping Fed wary of slow cooling
economics5 days ago

December inflation ticks up again, keeping Fed wary of slow cooling

U.S. inflation accelerated in December as the Commerce Department’s PCE price index rose 0.4% for the month and 2.9% from a year earlier, the fastest yearly rise since March 2024. Core PCE also climbed 0.4% MoM and 3.0% YoY. Yet spending rose 0.4% and while gas prices fell, electricity and natural gas costs rose. The Federal Reserve left rates around 3.6%, with officials wanting inflation closer to 2% before considering rate cuts.

Friday PCE Release Could Move Markets as Inflation Bets Take Center Stage
business5 days ago

Friday PCE Release Could Move Markets as Inflation Bets Take Center Stage

Friday morning's release of the Fed's preferred inflation gauge, the PCE Price Index, could move U.S. markets as traders assess whether inflation is moderating and what that means for Fed rate cuts this year. If PCE confirms cooling inflation, markets could rise with bets of multiple rate cuts; futures currently price in about two 25bp cuts in 2026, potentially lifting to three if the data reinforces a softer inflation path.

Fed minutes reveal rift over future rate moves
business7 days ago

Fed minutes reveal rift over future rate moves

Minutes from the Jan. 27-28 FOMC meeting show a clear split among policymakers on the path for rates: some want further cuts if inflation cools, others urge holding rates for now, and a few even floated hikes if inflation stays above target. The decision to hold was marked by dissent from two governors, even as most officials noted signs of labor-market stabilization. Recent data—strong job gains and a softer CPI—keep the outlook mixed. With Powell nearing the end of his term and Kevin Warsh eyed as a successor, the policy path remains unsettled ahead of upcoming meetings.

Trump adviser condemns tariff study, calls for discipline of Fed economists
business7 days ago

Trump adviser condemns tariff study, calls for discipline of Fed economists

National Economic Council director Kevin Hassett slammed a New York Fed tariff study as an embarrassment and urged those behind it to be disciplined, arguing the paper misstates who bears tariff costs as US firms and shoppers shoulder most of the burden; the clash comes as tariff litigation goes to the Supreme Court and the Fed debates how to respond to inflation amid rate policy uncertainties.

Hassett ridicules NY Fed tariffs study as flawed and partisan
business7 days ago

Hassett ridicules NY Fed tariffs study as flawed and partisan

National Economic Council Director Kevin Hassett slammed a New York Fed study claiming roughly 90% of Trump’s tariffs are paid by American consumers and businesses, calling the paper “the worst” Fed research and arguing its analysis seats an incomplete picture by focusing on price effects while ignoring import-volume changes and supply-chain shifts. The article notes the NY Fed team measured tariff burdens by average duty relative to imports and that Hassett’s critique comes amid broader political tension around Fed independence and leadership, including Trump’s nomination of former Fed governor Warsh for the chair role.

politics7 days ago

Hassett slams NY Fed tariff study, urges accountability for its authors

White House economic adviser Kevin Hassett blasted a New York Fed paper claiming Trump tariffs largely fall on U.S. firms and consumers, calling it “an embarrassment” and urging disciplinary action for its authors. The NY Fed study, echoed by other reputable research, says about 90% of the tariff burden has been borne domestically with import prices for tariffed goods rising roughly 11%, and that U.S. households paid the majority of the cost in 2025 before the share moderated later that year. The NY Fed declined to comment.

Warsh’s Push for a Leaner Fed Balance Sheet Faces Market Realities
economy8 days ago

Warsh’s Push for a Leaner Fed Balance Sheet Faces Market Realities

Fed nominee Kevin Warsh advocates a smaller central-bank balance sheet, but experts warn that without broad regulatory changes and tweaks to money-market operations, shrinking it could destabilize markets because banks rely on reserves; QT has cut holdings from about $9 trillion to roughly $6.7 trillion, and any further contraction would likely require policy shifts or Treasury coordination to avoid volatility.