Latest Federal Reserve System News

Better results from retailers help send stock market higher

May. 26, 2022 16:46 PM EDT

NEW YORK (AP) — Stocks closed broadly higher on Wall Street Thursday as investors cheered a strong set of quarterly results from Macy’s and other retailers. The S&P 500 rose 2% and is on pace for its first weekly gain after seven straight losses, its longest such stretch...

Worry about stagflation, a flashback to '70s, begins to grow

May. 26, 2022 16:03 PM EDT

WASHINGTON (AP) — Stagflation. It was the dreaded “S word” of the 1970s. For Americans of a certain age, it conjures memories of painfully long lines at gas stations, shuttered factories and President Gerald Ford’s much-ridiculed “Whip Inflation Now” buttons. ...

US economy shrank by 1.5% in Q1 but consumers kept spending

May. 26, 2022 09:10 AM EDT

WASHINGTON (AP) — The U.S. economy shrank in the first three months of the year even though consumers and businesses kept spending at a solid pace, the government reported Thursday in a slight downgrade of its previous estimate for the January-March quarter. Last quarter's drop in...

Asian stocks mixed after Fed confirms rate hike plans

May. 25, 2022 23:37 PM EDT

BEIJING (AP) — Asian stock markets were mixed Thursday after notes from the Federal Reserve's latest meeting confirmed expectations for more interest rate hikes but contained no surprises to rattle investors. Benchmarks in Hong Kong and Sydney declined while Tokyo, Shanghai and...

How major US stock indexes fared Wednesday

May. 25, 2022 16:23 PM EDT

Stocks rose broadly on Wall Street Wednesday after minutes from the Federal Reserve’s most recent meeting indicate the central bank intends to move “expeditiously” to raise interest rates back to more neutral levels in its fight to tame inflation. The S&P 500, the Dow Jones...

Fed officials signal rates may head to 'restrictive' levels

May. 25, 2022 15:20 PM EDT

WASHINGTON (AP) — Federal Reserve officials agreed when they met earlier this month that they may have to raise interest rates to levels that would weaken the economy as part of their drive to curb inflation, which is near a four-decade high. At the same time, many of the...

Kansas City Fed President Esther George announces retirement

May. 25, 2022 12:23 PM EDT

WASHINGTON (AP) — The president of the Federal Reserve Bank of Kansas City, Esther George, said Wednesday that she will retire in January, as required by the Fed's mandatory retirement rules. George, who has typically supported higher interest rates to ward off inflation — a...

Powell: 'Soft' economic landing may be out of Fed's control

May. 24, 2022 10:35 AM EDT

WASHINGTON (AP) — Federal Reserve Chair Jerome Powell, fresh off winning Senate confirmation for a second term earlier in the day, acknowledged for the first time Thursday that high inflation and economic weakness overseas could thwart his efforts to avoid causing a recession. For...

For Americans, 2021 delivered healthiest finances in 8 years

May. 23, 2022 11:04 AM EDT

WASHINGTON (AP) — Americans' financial health reached its highest level in nearly a decade last year, the Federal Reserve said Monday, spurred by a strong job market and government support payments. Almost eight in 10 adults said last fall that they were either “doing okay or...

Consumers defy inflation to support economy. For how long?

May. 22, 2022 09:43 AM EDT

WASHINGTON (AP) — With prices across the economy — from food, gas and rent to cars, airfares and hotel rooms — soaring at their fastest pace in decades, you might think Americans would tap the brakes on spending. Not so far. Consumers as a whole are showing surprising...