Federal Reserve Chair Kevin Warsh will lead his first policy meeting next week as investors increasingly question whether interest rates could rise again if inflation remains stubbornly high. The Fed is widely expected to leave rates unchanged, but markets will be closely watching Warsh’s first press conference as chair for signals about the central bank’s […]
Markets await Warsh’s first meeting as Fed chair Read More »
Processing Content Key insight: The Federal Reserve’s bylaws — or lack thereof — mean that the Fed chair’s actual powers are largely undefined and based on precedent, norms and persuasion. Forward look: The possibility of a Democratic appointee after the next presidential election could create the conditions for a power struggle on what has long
Who really controls the Fed board? Read More »
Rates for 30-year conforming mortgages stayed above 6.7% this week, but housing market activity has been resilient as weekly pending sales and purchase loan demand are up slightly compared to this time last year. At HousingWire’s Mortgage Rates Center on Tuesday, 30-year conforming loan rates averaged 6.71%, while rates for 30-year jumbo loans averaged 6.73%
Mortgage rates at 6.71% as purchase demand holds up Read More »
Bloomberg News Processing Content Key insight: As concerns about inflation take center stage for other monetary policymakers, Bowman’s perspective shows that some Fed officials are still willing to consider rate cuts in the near future. Expert quote: “It is appropriate to look through temporarily elevated inflation readings largely due to higher energy prices, provided that
Fed’s Bowman willing to look through war-driven inflation bump Read More »
Key insight: Another key policymaker has made the case that inflation has emerged as the central bank’s primary concern as the war in Iran continues to drive up prices. Expert quote: “After five years of above-target inflation, I am particularly attuned to the risk that elevated inflation will become embedded in price- and wage-setting behavior.
Fed’s Cook ‘prepared to raise rates’ if inflation persists Read More »
Key takeaway: Kevin Warsh, President Donald Trump’s pick to lead the central bank, is now officially the chair of the Federal Reserve. Expert quote: “I want him to be independent and just do a great job. Don’t look at me, don’t look at anybody, just do your own thing and do a great job.” —
Kevin Warsh sworn in as Federal Reserve chair Read More »
Key insight: Federal Reserve Gov. Christopher Waller said Friday that he supports eliminating language in the Federal Open Market Committee’s forward guidance that implies that the central bank is inclined to cut rates, joining three dissents from regional Fed presidents during the last FOMC meeting. Expert quote: “You just can’t look at this data and
As inflation rises, Fed’s Waller ready to drop ‘easing bias’ Read More »
Key takeaway: Federal Reserve Gov. Michael Barr said shrinking the central bank’s balance sheet could have unintended consequences, including increasing the Fed’s footprint in financial markets. Expert quote: “I think shrinking the balance sheet is the wrong objective, and many of the proposals to meet this objective would undermine bank resilience, impede money market functioning
Fed’s Barr warns of tradeoffs in shrinking balance sheet Read More »
Key insight: The Senate confirmed Kevin Warsh as Fed chair in a largely party-line 54 to 45 vote. What’s at stake: Warsh has pledged to keep monetary policy independent despite sustained pressure from President Donald Trump for lower interest rates. Forward look: Warsh takes the helm of the Fed as inflation metrics continue to climb,
Senate confirms Kevin Warsh as Federal Reserve chair Read More »
Key takeaway: Working-class families are likely to feel the greatest strain from the inflationary pressures spurred by higher energy prices and President Donald Trump’s tariff policies. Expert quote: “Uncertainty raises the option value of waiting, and waiting means not spending now. The uncertainty in the Middle East probably is going to delay major purchases, especially
Rising energy costs may squeeze families, but not the economy Read More »