interest rates

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Inflation Finally Cools— Just in Time for Fed Decision

Markets are happy just hours before central bank decides on rates

(Newser) - Wednesday will be another big day on Wall Street, as investors await a decision by the Federal Reserve on interest rates. Some key factors at play:
  • Inflation eases: Hours before the decision, a new report showed that inflation slowed in May, reports the New York Times . The Consumer Price Index

Fed Holds Key Rate Steady for a 6th Time in a Row
Fed Says Key Rate
Will Stay at 23-Year High

Fed Says Key Rate Will Stay at 23-Year High

Powell cites lack of 'further progress' on taming inflation, says rate hike is 'unlikely'

(Newser) - This story has been updated with Powell's remarks. As widely expected, the Federal Reserve held its benchmark interest rate unchanged Wednesday for a sixth straight meeting at between 5.25% and 5.5%, the highest level since 2001. The central bank said it won't cut rates until it...

Long-Cautious Jamie Dimon Has Another Economic Warning

He sees the potential for interest rates to hit 8% or more

(Newser) - Some market watchers suspect the Fed won't cut rates at all in 2024. JPMorgan Chase CEO Jamie Dimon sees the potential for things to move sharply in the other direction. In an annual letter to JPMorgan Chase shareholders released Monday, Dimon warned that while he expects the US economy...

Those 3 Fed Rate Cuts Are Starting to Look Shaky

Friday's strong jobs report has economists adjusting their expectations

(Newser) - Fewer than three weeks ago, the Fed signaled that they still expected to cut their key interest rate three times in 2024 , taking it down three-quarters of a point from its current 5.25% to 5.5% range. Traders are now growing increasingly doubtful that many cuts will come to...

Federal Reserve Keeps Rate As-Is Yet Again

It holds for 5th straight time, with 3 cuts still expected in 2024

(Newser) - After ending their latest meeting, Federal Reserve officials kept their benchmark interest rate unchanged for a fifth straight time at between 5.25% and 5.5%, reports the Wall Street Journal. They signaled that they still expect to cut their key interest rate three times in 2024 despite signs that...

Jerome Powell Asks Americans to Be Patient

Fed chair indicates central bank is still on track to cut interest rates this year, though

(Newser) - In an appearance on 60 Minutes Sunday, Jerome Powell said the Federal Reserve is still on track to cut interest rates three times in 2024. The Fed chair acknowledged that as the central bank has raised its benchmark rate 11 times since 2022 to fight inflation, Americans looking to buy...

Powell on Rate Cuts: 'Path Forward Is Uncertain'

Federal Reserve holds key rate steady

(Newser) - This story has been updated with Powell's remarks. The Federal Reserve, surprising nobody, left its benchmark interest rate unchanged Wednesday at between 5.25% and 5.5%, its highest in 23 years. This was the fourth Fed meeting in a row that resulted in no change to the key...

In 'Remarkable Shift,' Fed Predicts 3 Rate Cuts in 2024

For now, it's holding benchmark rate steady

(Newser) - Stocks surged on Wednesday after the Federal Reserve left its key interest rate unchanged for the third meeting in a row—and predicted that there would be three rate cuts next year. The Fed signaled that inflation had come down faster than expected, opening the door to interest rate cuts,...

Inflation Report Is Better Than Expected

It cools off in October to 3.2%

(Newser) - The new inflation report is out, and it's likely to make the Federal Reserve pretty happy: It cooled down last month in a sign that the Fed's interest rate hikes are having the desired effect, per the AP .
  • Key numbers: Tuesday's report from the Labor Department showed

Fed Holds Key Rate at 22-Year High
Fed Holds Key Rate
at 22-Year High

Fed Holds Key Rate at 22-Year High

Central bank says households, businesses are facing tighter credit conditions

(Newser) - The Federal Reserve held its key interest rate steady at a 22-year high on Wednesday—but the central bank left open the possibility of another rise in the months ahead. The Wall Street Journal reports that while inflation has slowed, officials could raise rates in December or January if it...

Fed Rate Hikes May Finally Be Over
Fed Rate Hikes May
Finally Be Over

Fed Rate Hikes May Finally Be Over

Officials say market moves are starting to tame inflation by themselves

(Newser) - After raising its benchmark interest rate from near zero to more than 5.25% over 19 months, the Federal Reserve may finally be done with its program of rate hikes. The Fed has been raising short-term borrowing costs to tame inflation, but officials say the raises are now affecting long-term...

Federal Reserve Leaves Key Rate Unchanged

But rates will likely go up again before the year is out and stay high in 2024

(Newser) - The Federal Reserve left its key interest rate unchanged Wednesday for the second time in its past three meetings, a sign that it's moderating its fight against inflation as price pressures have eased. But Fed officials also signaled that they expect to raise rates once more this year, the...

Fed Chief: 'We Are Prepared to Raise Rates Further'

Jerome Powell gives a closely watched update

(Newser) - The continued resilience of the US economy could require further interest rate increases, Federal Reserve Chair Jerome Powell said Friday in a closely watched speech that also highlighted the uncertain nature of the economic outlook. Powell noted that the economy has been growing faster than expected and that consumers have...

Fed Hikes Interest Rates to a 22-Year High

Quarter-point increase is 11th in 17 months

(Newser) - The expectation was that the Federal Reserve would lift its key interest rate for the 11th time in 17 months, and that's exactly what came to pass on Wednesday. The quarter-point hike brings the the Fed's short-term rate to roughly 5.3%, the highest level since 2001. As...

The Federal Reserve Gives Us a Skip and a Surprise

Leaves interest rates alone for first time in 15 months, but 2 more hikes could come

(Newser) - After a 10-meeting run of raising interest rates, the Federal Reserve on Wednesday decided to leave rates alone—but in a surprise, indicated two more hikes could come before 2023 is through, reports CNBC . The decision is being viewed as more of a "skip" than a pause and leaves...

Fed Raises Key Interest Rate by a Quarter-Point

Central bank keeps rise relatively modest amid banking turmoil

(Newser) - The Federal Reserve has hiked its benchmark interest rate for the ninth time in a row, sticking to a quarter-point hike in a widely expected move, though banking turmoil added some uncertainty. Jason Furman, chairman of the Council of Economic Advisers during the Obama administration, told CNN earlier Wednesday that...

Fed's Powell Speaks, and Markets Aren't Thrilled

Fed Chair Has
More Bad News

Fed Chair Has More Bad News

Guess what? Higher interest rates likely coming

(Newser) - Jerome Powell opened his mouth on Tuesday before the Senate Banking Committee, Wall Street listened and wasn't happy, and probably no one who's possession of a variable interest rate will be, either. "The latest economic data have come in stronger than expected, which suggests that the ultimate...

Rocket Mortgage Was a Refinancing Giant. Now What?

Bankers are feeling the pressure as rising interest rates make refinancing unappealing

(Newser) - In late 2020, 19 million American homeowners could've saved money by refinancing their mortgage. Today that number stands at just 133,000, according to mortgage data and analytics company Black Knight—which isn't great news for the nation's largest home lender. For most of last year, 1...

Annual 'Core' Inflation Sees Biggest Jump in 40 Years

6.6% over the past 12 months

(Newser) - Inflation in the United States accelerated in September, with the cost of housing and other necessities intensifying pressure on households, wiping out pay gains that many have received, and ensuring that the Federal Reserve will keep raising interest rates aggressively. Consumer prices rose 8.2% in September, compared with a...

Will Savings Accounts Ever See Higher Interest Rates?

Most big banks don't need your deposit, but experts say it pays to shop around

(Newser) - Since 2009, anyone with a savings account has gotten used to paltry returns of roughly 0%. That’s largely because the Fed funds rate has been so low, but that’s no longer the case, as the Fed has raised rates multiple times this year. Rates for mortgages and credit...

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