Latest Federal Reserve System News

Fed finds biggest US banks strong enough to survive shock

Jun. 21, 2018 7:01 PM EDT

WASHINGTON (AP) — The Federal Reserve says that all of the 35 largest U.S. banks are fortified enough to survive an economic shock and keep on lending. Banks' hypothetical losses from credit cards increased in the latest "stress tests," however. The first round of the central bank's annual stress tests,...

Fed chair signals gradual rate hikes in tame inflation era

Jun. 20, 2018 10:46 AM EDT

WASHINGTON (AP) — The U.S. Federal Reserve will likely keep raising short-term interest rates at only a gradual pace, Fed chair Jerome Powell said Wednesday, partly because there are few signs, so far, that the ultra-low U.S. unemployment rate is pushing up inflation. In a speech in Portugal, Powell said...

Why many Americans aren't benefiting from robust US economy

Jun. 16, 2018 9:53 AM EDT

WASHINGTON (AP) — "The economy," Federal Reserve Chairman Jerome Powell declared this week, "is doing very well." And it is. Steady hiring has shrunk unemployment to 3.8 percent — the lowest since the 1960's. Consumers are spending. Taxes are down. Inflation is tame. Factories are busy. Demand for...

Fed sets limits on biggest banks' loans to each other

Jun. 14, 2018 4:18 PM EDT

WASHINGTON (AP) — The Federal Reserve has set limits aimed at addressing one of the leading causes of the 2008 financial crisis — the buildup of loans extended by one bank to another among the biggest Wall Street institutions. At a meeting Thursday, the Fed governors adopted a new rule that caps a...

Europe, Fed moves show global shift away from cheap money

Jun. 14, 2018 2:14 PM EDT

RIGA, Latvia (AP) — Two of the globe's most powerful central banks are gradually withdrawing the easy money policies that helped repair the damage wrought by the Great Recession and push stock markets to record highs. It's a sign of confidence in the economy, but with uncertain consequences for consumers...

Global stocks sink after Fed hike signal, eyes turn to ECB

Jun. 14, 2018 7:16 AM EDT

SEOUL, South Korea (AP) — Global stocks slumped Thursday after the U.S. Federal Reserve raised its key interest rate and said it would pick up the pace of future increases. Eyes are now on the European Central Bank, which is discussing Thursday when it might end its stimulus program. KEEPING SCORE:...

Weak pay growth puzzles Fed chief, just like everyone else

Jun. 14, 2018 1:56 AM EDT

WASHINGTON (AP) — Halfway through a news conference Wednesday, the head of the world's most powerful central bank was asked a question weighing on the minds — and the checking accounts — of Americans everywhere: When will people finally start getting meaningful pay raises? Jerome Powell, the...

Asian stocks slump after Fed signals faster rate hikes

Jun. 14, 2018 12:28 AM EDT

SEOUL, South Korea (AP) — Asian stocks slumped Thursday after the U.S. Federal Reserve raised its key interest rate and said it would pick up the pace of future increases. South Korea's market benchmark tumbled 1.6 percent on the first trading day after a meeting of U.S. and North Korean leaders. KEEPING...

Fed raises key rate and sees possible acceleration in hikes

Jun. 13, 2018 5:14 PM EDT

WASHINGTON (AP) — The Federal Reserve took note of a resilient U.S. economy Wednesday by raising its benchmark interest rate for the second time this year and signaling that it may step up its pace of rate increases. The Fed now foresees four rate hikes this year, up from the three it had previously...

How major US stock indexes fared Wednesday

Jun. 13, 2018 5:01 PM EDT

U.S. stocks slipped Wednesday after the Federal Reserve raised interest rates and said it expects to increase rates two more times by the end of the year. Investors bet that several huge deals are more likely to go ahead after a federal court cleared AT&T's $85 billion purchase of Time Warner. On Wednesday:...