Latest Monetary policy News

Fed plans more Treasury purchases to control lending rates

Oct. 11, 2019 1:39 PM EDT

WASHINGTON (AP) — The Federal Reserve said Friday that it will buy short-term Treasury bills each month until the second quarter of 2020 to inject cash into the banking system and make it easier to control its benchmark lending rate. The action marks the Fed's latest response to a shortage of cash reserves...

European Central Bank minority opposed bond-buying stimulus

Oct. 10, 2019 12:47 PM EDT

FRANKFURT, Germany (AP) — European Central Bank policymakers haggled extensively over several parts of the stimulus package unveiled at their meeting last month, with dissenters objecting to the relaunch of bond purchases aimed at lifting inflation and growth in the 19-country eurozone economy. The written...

Powell faces key question: What's wrong with low inflation?

Oct. 9, 2019 1:31 PM EDT

WASHINGTON (AP) — When out shopping, most Americans like lower prices. But the Federal Reserve sees things a little differently. On Wednesday, Fed Chairman Jerome Powell instead said that low inflation can create problems for the U.S. economy, calling it one of the "longer-term challenges" facing the...

Powell sees cooler US hiring in possible hint of rate cuts

Oct. 8, 2019 5:05 PM EDT

WASHINGTON (AP) — Federal Reserve Chairman Jerome Powell said Tuesday that U.S. job growth since early last year was not as robust as thought, a hint that the Fed may be ready to keep cutting interest rates to support the economy. Powell also said the Fed will soon announce plans to buy Treasurys, likely...

Fed's odd dilemma: Low unemployment but pressure to do more

Oct. 8, 2019 6:42 AM EDT

WASHINGTON (AP) — With the nation's unemployment rate at its lowest point since human beings first walked on the moon, you might expect the Federal Reserve to be raising interest rates to keep the economy from overheating and igniting inflation. That's what the rules of economics would suggest. Yet the Fed...

Chairman: Federal reserve must avoid political pressures

Oct. 7, 2019 4:34 PM EDT

SALT LAKE CITY (AP) — Federal Reserve Chairman Jerome Powell on Monday stressed the importance of an independent central bank "absolutely free" from politics in the wake of increasing pressure from President Donald Trump urging the central bank to lower interest rates. Powell spoke to a crowd of hundreds...

Business economists foresee slowdown in US growth

Oct. 7, 2019 3:38 AM EDT

WASHINGTON (AP) — The nation's business economists think President Donald Trump's trade war with China will contribute to a sharp slowdown in economic growth this year and next, raising concerns about a possible recession starting late next year. The latest survey by a panel of 51 forecasters with the...

AP FACT CHECK: Trump's tale about Romney unrest, impeachment

Oct. 7, 2019 12:15 AM EDT

WASHINGTON (AP) — Facing an impeachment inquiry, President Donald Trump is turning to a familiar playbook to defend himself: blasting the inquiry as illegal, attacking his investigators and critics alike, and deriding the whistleblower process as all-but-rigged. Many facts are getting lost in the process....

AP FACT CHECK: Trump's fact-challenged week over impeachment

Oct. 5, 2019 8:08 AM EDT

WASHINGTON (AP) — Facing an impeachment inquiry, President Donald Trump is turning to a familiar playbook to defend himself: attacking his investigators , blasting the inquiry as illegal and deriding the process as all-but-rigged. Many facts are getting lost in the process. He repeatedly lambasted...

Fed chairman says goal is to keep economy in 'good place'

Oct. 4, 2019 3:39 PM EDT

WASHINGTON (AP) — Federal Reserve Chairman Jerome Powell said Friday that the U.S. economy is facing some risks at the moment, but overall it is in a "good place" and the Fed's main job is to "keep it there as long as possible." Powell noted that unemployment is at a half-century low and inflation is...