Latest Central banking 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...

New California law will cap consumer loan interest rates

Oct. 10, 2019 10:57 PM EDT

SACRAMENTO, Calif. (AP) — California Gov. Gavin Newsom has signed a law capping interesting rates on consumer loans. It's a measure designed to stop predatory lending in which some lenders charge interest rates in the double digits. The Democratic governor announced Thursday he signed the law, which takes...

Fed approves rules loosening Dodd-Frank bank restrictions

Oct. 10, 2019 5:02 PM EDT

WASHINGTON (AP) — The Federal Reserve is easing restrictions imposed on banks following the 2008 financial crisis, giving a victory to the banking industry and President Donald Trump. The Fed on Thursday approved a set of rule changes that implement legislation passed by Congress last year to loosen...

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...

Fed officials were sharply divided over September rate cut

Oct. 9, 2019 4:27 PM EDT

WASHINGTON (AP) — Federal Reserve officials were sharply divided last month when they decided to cut their key policy rate for a second time this year, a split that indicates the path forward for future rate cuts remains cloudy. Minutes of the discussion at the September meeting released Wednesday showed...

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...

US dips in competitiveness index as Singapore takes top spot

Oct. 8, 2019 9:38 PM EDT

GENEVA (AP) — The United States is less competitive than it was a year ago and the global economy remains hobbled by low productivity despite a decade of cheap money from central banks, the World Economic Forum said Wednesday. In its latest assessment of the factors behind productivity and long-term...

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...

IMF chief: trade conflicts fuel synchronized global slowdown

Oct. 8, 2019 10:30 AM EDT

WASHINGTON (AP) — The new head of the 189-nation International Monetary Fund warned Tuesday that the world economy is in the grips of a "synchronized global slowdown" that will result in slower growth for 90% of the world this year. IMF Managing Director Kristalina Georgieva said that an updated IMF...

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...