Latest Federal Reserve System News

US firms keep hiring, easing worries of weakening economy

Dec. 6, 2019 5:45 PM EST

WASHINGTON (AP) — American businesses have complained for years that they can’t find the workers they need to fill available jobs. November’s robust hiring gain suggests that at least some have found a way to do so. With the unemployment rate now at a half-century low of 3.5%, many economists...

Hitting the plastic: US credit card use jumped in October

Dec. 6, 2019 5:16 PM EST

WASHINGTON (AP) — U.S. consumers ramped up their credit card spending in October. The Federal Reserve said Friday that total consumer borrowing rose in October by a seasonally adjusted $18.9 billion, up from a September increase of $9.6 billion. It was the biggest increase in borrowing in three months and...

Correction: CNS-Student Debt story

Dec. 5, 2019 5:00 PM EST

In a story Dec. 3 about student loan debt, the Capital News Service erroneously reported the interest rate for federal student loans as well as the rate by which they increased in one year. The that rate is 4.53%, not 5.05%. The increase was 10.3%, not 13.48%. The article also erroneously reported that federal...

How a central banker’s low-rate shift showed the way for Fed

Nov. 29, 2019 11:17 AM EST

RICHMOND, Virginia (AP) — In mid-2016, even with unemployment falling and the economy growing modestly, James Bullard, head of the St. Louis Federal Reserve Bank, was concerned. Months earlier, with Bullard’s support, the Fed had raised rates for the first time in seven years. Panicky financial...

Fed survey finds US economy expanding despite trade fallout

Nov. 27, 2019 2:27 PM EST

WASHINGTON (AP) — The Federal Reserve said Wednesday that the U.S. economy was expanding at a modest pace in October and early November, supported by growing consumer spending. In its latest assessment of business conditions nationwide, the Fed struck a more upbeat tone than it had in its previous report...

US economy looking durable despite risks from trade conflict

Nov. 27, 2019 1:08 PM EST

WASHINGTON (AP) — A series of government reports Wednesday cast a picture of a steadily growing U.S. economy, fueled by solid consumer spending and defying threats — at least for now — from a U.S.-China trade war and a global slowdown. The Commerce Department estimated that the economy grew...

US consumer spending up 0.3% in October but incomes are flat

Nov. 27, 2019 11:15 AM EST

WASHINGTON (AP) — Americans increased their spending in October at the fastest rate in three months even though income growth was essentially flat, its weakest showing in 13 months. The Commerce Department said Wednesday that consumer spending rose 0.3% last month, the best gain since a 0.5% rise in July....

Powell: Solid economy but tame inflation allows low rates

Nov. 25, 2019 7:51 PM EST

Federal Reserve Chairman Jerome Powell on Monday sketched an optimistic view of the economy but signaled that continued low inflation means higher interest rates won’t likely be necessary anytime soon. Powell said that even with unemployment near a 50-year low of 3.6%, there’s still “plenty...

Jerome meets Jasmine: Fed chief observes economic struggles

Nov. 25, 2019 4:10 PM EST

EAST HARTFORD, Connecticut (AP) — Federal Reserve Chairman Jerome Powell normally spends his days in the marble halls of Washington, meeting with senators and Fed economists. On Monday, he learned about the job market from an 18-year-old named Jasmine. A recent high school graduate, Jasmine Ayala explained...

Federal Reserve chairman to visit Connecticut, Rhode Island

Nov. 24, 2019 9:07 AM EST

PROVIDENCE, R.I. (AP) — Federal Reserve Chairman Jerome Powell is planning to visit Connecticut and Rhode Island. The Federal Reserve says Powell will be in East Hartford and Providence on Monday. Powell and Federal Reserve Bank of Boston President Eric Rosengren plan to meet with leaders of East Hartford...