Latest Federal Reserve System News

Fed survey finds US economy being hurt by trade battles

Oct. 16, 2019 6:46 PM EDT

WASHINGTON (AP) — The U.S. economy expanded at a modest pace in September and into October, despite rising trade tensions and weaker global growth that hampered manufacturing, and adverse weather hitting farmers. In its latest assessment of business conditions around the country, the Federal Reserve...

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...

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...

US consumer prices unchanged in September

Oct. 10, 2019 12:55 PM EDT

WASHINGTON (AP) — Overall consumer prices were unchanged in September as a big decline in energy costs offset small gains in other areas. The flat reading in the Consumer Price Index for September followed a tiny 0.1% August increase and left prices over the past 12 months rising at a modest annual rate of...

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...

Federal regulatory agencies OK changes to 'Volcker rule'

Oct. 8, 2019 5:37 PM EDT

WASHINGTON (AP) — The Federal Reserve and four other regulatory agencies announced final approval Tuesday to changes in the "Volcker rule" passed after the 2008 financial meltdown to crack down on trading excesses that contributed to the crisis. The changes were supported by the banking industry, which...

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...