federal reserve, Jerome Powell and lower rates
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Powell acknowledged “strongly different views” within the Federal Open Market Committee during October’s policy decision.
Rick Rieder, an asset manager on the short list of possible candidates to be the next chair of the Federal Reserve, said Wednesday he feels interest-rate cuts are in line with a "clearly slowing" labor market and that Fed Chair Jerome Powell was "considerably more hawkish than expected" in his post-meeting news conference.
Federal Reserve Chair Jerome Powell’s blunt warning that investors need to rein in expectations for a December interest-rate cut underscored a growing tug-of-war among US policymakers who are opposed in their outlooks for jobs and inflation.
Fed Chair Jerome Powell announced the Fed is cutting the overnight lending rate by a quarter of a point, bringing the benchmark rate to 3.75% to 4%.
Jay Powell declared the central bank was “driving in the fog” as the Federal Reserve cut interest rates in the middle of a government shutdown that has deprived the institution of some economic data. The quarter-point cut, which brings the US benchmark rate down to 3.75 per cent, was broadly expected. It now sits at the lowest level since 2022.
The Fed leader discussed the reasoning behind the central bank’s decision to cut rates at its second straight meeting as well as the move to stop shrinking its multitrillion-dollar asset portfolio.
In February, the 12 presidents at the regional Federal Reserve banks will need to be reconfirmed in their jobs by the central bank’s Board of Governors. President Donald Trump’s effort to gain control
Federal Reserve Chairman Jerome Powell plans to serve out his term, which ends in May of 2026, but that isn't stopping Treasury Secretary Bessent from moving ahead with finding his replacement.
"The reaction of the bond market should certainly give Fed officials pause," wrote Ed Yardeni, head of Yardeni Research and coiner of the term "bond vigilantes" to describe buyers' strikes in the fixed income markets. "The bond market isn't buying the Fed's cover story that interest rates were too restrictive."