Key insight: The U.S. added 115,000 jobs in April while unemployment held steady at 4.3%. Supporting data: Newly unemployed workers rose by 358,000 in April to 2.5 million. Forward look: The report could complicate an already divided Federal Reserve as it considers whether to combat inflation spurred by geopolitical risks or foster employment by cutting […]
Economy added 115,000 jobs in April despite mixed signals Read More »
Key takeaway: Federal Reserve Gov. Michael Barr said rising energy costs — already rising in part due to increased electricity demand from data centers — could be made worse by the Iran war, but how much worse depends on how long the Strait of Hormuz remains closed. Expert quote: “The most immediate effect is a
Fed’s Barr says gas prices could ‘bleed’ into inflation Read More »
Key takeaway: As Federal Reserve Chair Jerome Powell’s term nears its end, stakeholders expect his role as a governor to be low-key and to continue until the release of an inspector general report clears him of any wrongdoing. Expert quote: “Powell was pretty clear, he’s not going to be a shadow chair. He knows what
Powell is staying at the Fed: What to expect Read More »
Key insight: Federal Reserve Chair Jerome Powell said that he would remain at the Fed board after his term as chair expires next month in order to ensure that the central bank can continue to conduct monetary policy independently. Expert quote: “I worry that these attacks are battering the institution and putting at risk the
Powell plays his last card as Fed chair Read More »
Key takeaway: The FOMC meets April 28-29 against a backdrop of elevated geopolitical uncertainty stemming from the Iran war, which has contributed to higher energy prices and renewed inflation concerns. The meeting also comes during a leadership transition at the Federal Reserve, with a new chair expected to take over in the coming months. Expert
Interest rates are the most certain thing about FOMC meeting Read More »
Key insight: Tillis’ acquiescence opens the door for a party-line confirmation of Warsh from the Senate Banking Committee on Wednesday. What’s at stake: Warsh will have considerable power over the Fed’s rate setting committee as chair of the Federal Reserve Board. Forward look: Warsh’s path to confirmation has now been cleared of its only significant
Tillis drops Warsh objections after DOJ exits Powell case Read More »
Key takeaway: Federal Reserve Gov. Christopher Waller said he wants to consolidate the corporate functions of the 12 regional banks under one structure and create a role to oversee them. Expert quote: “Autonomy is a virtue, but not when it produces costly duplication that serves no one. We owe this to the American people we
Fed’s Waller calls for consolidating regional bank operations Read More »
Key insight: The fight over Federal Reserve independence has made confirming Warsh politically impossible, with one Republican senator blocking Kevin Warsh’s approval by the Senate Banking Committee. Forward look: Should the Senate not confirm a Fed chairman, it’s unclear who will helm the central bank when outgoing Fed Chair Jerome Powell’s term expires in mid-May.
Warsh insists he wouldn’t do Trump’s bidding as Fed chair Read More »
Key takeaway: Fed Gov. Stephen Miran said he could now foresee three short-term interest rate cuts instead of four, citing shifts in the underlying composition of headline inflation. Expert Quote: “What’s happened in the last couple of months before the war broke out is that even though headline inflation was going sideways, the underlying composition
Fed’s Miran downplays inflation risks, rethinks rate cuts Read More »
Key insight: President Donald Trump says he will remove Fed Chair Jerome Powell from the central bank if he does not leave after his term expires on May 16. Trump also said his administration will not drop its probe into Powell over renovations at the central bank’s headquarters. Expert quote: “I’ll have to fire him
Trump threatens to fire Fed Chair Powell if he doesn’t resign Read More »