Tag: Federal Reserve

Federal Reserve decided to cut rate by an supersized 0.5 percentage point. The decision finally ended the weeks-long market debate of whether the central bank would cut 25 or 50 basis points. One important thing, though, didn't reach the headline: The Fed has never been this "confused" about where the natural rate should be.

The Federal Reserve lowered its fed fund rate target by 50 basis points to the range of 4.75 - 5%, with governor Michelle Bowman dissented the decision in favor of a smaller a quarter percentage point cut.

San Francisco Fed President Mary Daly and Minneapolis Fed President Neel Kashkari are both open to discussions about cutting Fed Fund Rate target at the up coming Federal Reserve meeting

Federal Reserve governor Michelle Bowman is worried about reacceleration in cost of living, saying that she 'still see some upside risks to inflation'

The Federal Reserve revealed US large banks passed the 2024 banking system stress test.

Dissent votes in Federal Reserve policy meetings are rare, accounting for only 6.37% of the votes between 1976 and 2017. However, opting not to vote against the FOMC consensus doesn't necessarily mean committee members don't "disagree" with it.

The US central bank also made an adjustment of the program's terms, setting minimum interest rate level at the interest of reserve balance, effective immediately, to block an arbitrage opportunity that banks have been taking advantage of.

Inflation projections by Fed officials show that PCE inflation will not reach 2% by the end of 2025. Why the Fed expects to cut rate next year then?

Inflation in the US showed further signs of easing as the yearly growth of core PCE price index slowed to 4.6% in February, while the headline number increased by 5%.

Core PCE inflation rose 4.7% in January YoY, beating expectation of 4.4% increase. The Fed-preferred price index rose 0.6% MoM compared to the market expectation of 0.5%.