Federal Reserve

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Stocks Give Up Gains After Fed Signals Rate Hike
Gains Evaporate After
Fed Signals Rate Hike
MARKETS
Jan 26, 2022 3:44 PM CST

Gains Evaporate After Fed Signals Rate Hike

S&P 500 gave up early gain of 2.2%

(Newser) - An early market rally gave way to a broad slide for stocks and a surge in bond yields Wednesday after the Federal Reserve signaled it plans to begin raising interest rates "soon" to fight a spike in inflation that the central bank says is probably getting worse. Fed Chair...

Fed Signals It Will Raise Rates as Soon as March

It will phase out its monthly bond purchases as well

(Newser) - The Federal Reserve signaled Wednesday that it plans to begin raising its benchmark interest rate as soon as March, a key step in reversing its pandemic-era low-rate policies that have fueled hiring and growth but also escalated inflation. With high inflation squeezing consumers and businesses and unemployment falling steadily, the...

New Economic Worry: Not a Bubble, but a &#39;Superbubble&#39;
Gloomy Word 'Superbubble'
Is Now Being Tossed Around
the rundown
Jan 25, 2022 9:04 AM CST

Gloomy Word 'Superbubble' Is Now Being Tossed Around

Investor Jeremy Grantham, noted for his pessimistic forecasts, issues a big one

(Newser) - If the forecast of big-name investor Jeremy Grantham is correct, the US economy—and perhaps your 401k—is in for a world of hurt. The 83-year-old founder of the Boston-based investment fund GMO (who is known for his gloomy forecasts) isn't just warning of a bubble, he's upgraded...

Fed Chief: We'll Get More Aggressive on Inflation

Jerome Powell tells Congress they'll raise interest rates more if need be

(Newser) - Federal Reserve Chair Jerome Powell acknowledged Tuesday that high inflation has emerged as a serious threat to the Fed's goal of helping put more Americans back to work and that the Fed will raise rates more than it now plans if needed to stem surging prices. "If we...

Fed's Vice Chair, Facing Questions on Trades, Resigns

Richard Clarida is the third top official to leave under a cloud

(Newser) - The vice chair of the Federal Reserve is resigning in the face of questions about his stock trading during the pandemic. Richard Clarida, whose term was in its last month, made the announcement Monday but did not elaborate, the Washington Post reports. "I will miss his wise counsel and...

Major Tech Stocks Drop After Fed Meeting Minutes Released

Tesla slumped 5.4%

(Newser) - Stocks closed lower on Wall Street Wednesday after minutes from the Federal Reserve’s last meeting raised expectations that the central bank will move faster to raise interest rates to fight inflation. The S&P 500 fell 92.96 points, or 1.9%, to 4,700.58. Drops in major...

Markets Welcome Fed's Plan to Pull Back Stimulus

Dow rose 383 points

(Newser) - Stocks rose steadily on Wall Street Wednesday after the Federal Reserve said it would accelerate its pullback of economic stimulus and would likely raise interest rates three times next year to tackle rising inflation. The Fed will shrink its monthly bond purchases at twice the pace it previously announced, putting...

Biden Makes Highly Anticipated Picks to Lead the Fed

President nominates Powell to continue as chair, wants to elevate Democrat Brainard to No. 2

(Newser) - President Biden has settled on a decision that's been awaited by economic markets around the world—he wants Jerome Powell to remain as chair of the Federal Reserve. Powell is a Republican, and while Democrats had been chafing for a switch at the central bank, the president opted for...

Fed Now Expects Inflation to Linger

Central bank is going to start dialing back economic aid

(Newser) - The Federal Reserve will begin dialing back the extraordinary economic aid it's provided since the pandemic erupted last year, a response to high inflation that now looks likely to persist longer than it did just a few months ago . In a statement Wednesday after its latest policy meeting, the...

Warren Calls Fed Chair a 'Dangerous Man'

She tells Jerome Powell she will oppose his renomination

(Newser) - Sen. Elizabeth Warren addressed what she called the "elephant in the room" at a Senate Banking Committee hearing Tuesday—the question of whether Jerome Powell will be renominated as Federal Reserve chair. The Democrat told Powell that she considers him a "dangerous man" who has weakened the country'...

Fed Considers Its Own Digital Currency

Powell sees no rush, though China's central bank is forging ahead on development

(Newser) - The Federal Reserve expects to issue a paper soon addressing whether it should go ahead with a digital currency of its own. The central bank has been looking into the issue, with the Boston Fed and MIT combining on a study that will precede the paper, CNBC reports. The advantages,...

Stocks Hold Gains After Big Announcement From Fed
Markets Unfazed by
Big Announcement From Fed
MARKETS
Sep 22, 2021 3:43 PM CDT

Markets Unfazed by Big Announcement From Fed

Central bank may start easing COVID-era support measures later this year

(Newser) - Stocks held on to their gains on Wall Street Wednesday after the Federal Reserve signaled it may begin easing its extraordinary support measures for the economy later this year. In a statement at 2pm Eastern, the central bank said it may start raising its benchmark interest rate sometime next year,...

Stocks Dip After Fed Says Economy &#39;Downshifted&#39;
Stocks Drop After Fed
Releases 'Beige Book'
MARKETS
Sep 8, 2021 3:42 PM CDT

Stocks Drop After Fed Releases 'Beige Book'

Economy 'downshifted' over the summer

(Newser) - Stocks closed lower on Wall Street Wednesday following a Federal Reserve report that shows US economic activity slowed this summer amid rising worries over resurgent coronavirus cases and mounting supply chain problems and labor shortages. The Fed’s latest survey of the nation’s business conditions, dubbed the “Beige...

Federal Reserve Chair Signals a 'Tapering' May Be Coming

Jerome Powell says if hiring stays on track, Fed will start to pull back on its low-rate pandemic policies

(Newser) - The Federal Reserve will start dialing back its ultra-low-rate policies this year as long as hiring continues to improve, Chair Jerome Powell said Friday, signaling the beginning of the end of the Fed's extraordinary response to the pandemic recession. Investors seemed to like the sentiment, with markets rising, notes...

Fed: No Change in Rates Despite Strong Recovery

But central bank may start dialing back policies later this year

(Newser) - The Federal Reserve said Wednesday that the US economy is strengthening and making progress on the Fed's employment and inflation goals, a small step toward dialing back its ultra-low-interest rate policies, perhaps later this year. The statement the Fed issued after its latest policy meeting said that ongoing vaccinations...

A Fed Official's Prediction Spooks the Stock Market

James Bullard thinks the Federal Reserve will start raising interest rates next year

(Newser) - When the Fed said earlier this week that it might start raising interest rates in 2023, the stock market wasn't happy . On Friday, when a Fed official said the hikes could come even sooner, the market's mood got even worse. In early trading, the Dow was down about...

Markets Drop as Fed Projects Rate Hikes
Markets Drop as Fed
Projects Rate Hikes
MARKETS
Jun 16, 2021 3:41 PM CDT

Markets Drop as Fed Projects Rate Hikes

Central bank might also slow down bond buys

(Newser) - Stocks fell on Wall Street and bond yields rose Wednesday after Federal Reserve officials signaled they may start easing off the accelerator on their massive support for markets and the economy earlier than previously thought. The S&P 500 fell 0.5% after a highly anticipated set of projections by...

Dow Passes 33K After Fed Announcement
Dow Passes 33K After
Fed Announcement
MARKETS
Mar 17, 2021 4:03 PM CDT

Dow Passes 33K After Fed Announcement

Interest rate likely to stay near zero until 2023

(Newser) - The Dow Jones Industrial Average and the S&P 500 closed at record highs Wednesday after the Federal Reserve said it expects its key interest rate to remain near zero through 2023. The central bank’s commitment to keeping rates at rock bottom lows comes even as it forecasts the...

Bitcoin Closes In on $50K After Setting a Record

Cryptocurrency climbed 4% in 24 hours

(Newser) - After rising 4% in 24 hours, Bitcoin hit a record $49,714.66 on Sunday. It slipped slightly to $48,700 later in the morning, Reuters reports. For the year, Bitcoin has risen nearly 70%. Widespread acceptance of virtual currencies is a main driver of the increase. After long hesitating,...

Your $600 Check Stalls Over 'Arcane' Argument

Sen. Pat Toomey wants to curb Federal Reserve powers

(Newser) - An arcane battle over emergency Federal Reserve powers is frustrating efforts to lock down an agreement on an almost $1 trillion COVID-19 economic relief package, the AP reports. Saturday's impasse is just the latest stumble in a partisan, monthslong fight, and feelings hardened as the Senate congregated for a...

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