Key Insight: The FOMC is expected to keep short-term interest rates unchanged at its January meeting, reflecting a cautious approach amid mixed economic signals. Expert Quote: “The timing of further rate cuts in 2026 will depend on whether recent progress in lowering inflation continues, as well as the ongoing health of the employment situation amid […]
Fed likely to keep rates steady as economy shows mixed signals Read More »
Key Insight: The Supreme Court’s focus on procedural and due process concerns suggests that Fed Governor Lisa Cook is likely to remain in her post while her case against the Trump administration proceeds. Expert quote: “While it’s always perilous to try to predict where the Court will come out, it seems to me that the
Trump Fed majority stalled, not stopped, if Cook remains Read More »
Al Drago/Bloomberg Processing Content Key Insight: Fed Vice Chair Michelle Bowman said labor market risks remain elevated and cautioned against signaling a policy pause as the central bank weighs its next moves. Expert Quote: “We should also avoid signaling that we will pause without identifying that conditions have changed. Doing so will indicate that we
Fed’s Bowman ‘continues to see downside risk’ to labor market Read More »
Andrew Harrer/Bloomberg Processing Content Key Insight: A panel of former Federal Reserve officials discussed the implications of a probe into Fed Chair Jerome Powell, saying the market’s muted reaction reflected political pushback against a potential indictment. Expert Quote: “Markets think these institutions will be strong enough to withstand these types of shocks.” — Randall Kroszner,
Former Fed officials: Markets still trust Fed independence Read More »
Getty Images Processing Content Key Insight: Market watchers have expressed concern that the Trump administration’s threat of criminal charges against Fed Chair Jerome Powell can push mortgage interest rates up and devalue U.S. financial assets. Expert Quote: “At this point, Fed independence is on life support. It will be dead if the Senate confirms a
Markets, lawmakers scramble amid DOJ inquiry into Fed Read More »
Key Insight: Richmond Fed President Tom Barkin believes that as businesses gain confidence in the country’s robust economic demand and adjust to the new policy environment in Washington, hiring and investment should increase in the year ahead. Expert Quote: “Going forward, policy will require finely tuned judgments balancing progress on each side of our mandate.”
Fed’s Barkin optimistic about market uncertainty in 2026 Read More »
David Paul Morris/Bloomberg Processing Content Key Insight: Minneapolis Fed President Neel Kashkari said the labor market is continuing to cool, though he wants to see additional data before deciding how monetary policy should proceed. Expert Quote: “My guess is we’re pretty close to neutral right now, and we just need to get more data to
Fed’s Kashkari flags concern about labor market Read More »
Key Insight: One of the most consequential developments will be President Donald Trump’s choice to replace Fed Gov. Stephen Miran, because whomever Trump selects is likely to also serve as the next Fed chairman after Fed Chair Jerome Powell’s term expires in May. Expert Quote: “If the FOMC is no longer acting purely neutrally with
The coming year will be pivotal for the Federal Reserve Read More »
Bloomberg News Processing Content Key takeaway: Federal Reserve Gov. Stephen Miran presented a number of contributors currently propping up goods inflation, including volatility in price data and lingering post-pandemic effects. Expert quote: “I accept I don’t know what’s driving higher goods inflation currently.” — Fed Gov. Stephen Miran. What’s at stake: Looking ahead to next
Fed Gov. Miran says goods inflation may remain elevated Read More »
Vincent Alban/Bloomberg Processing Content Key Insight: Both regional Federal Reserve presidents, who are voting members of the Federal Open Market Committee in 2025, said they wanted interest rates to remain unchanged because of inflation concerns and a lack of official data. Expert Quote: “Inflation remains too high, the economy shows continued momentum, and the labor
Fed’s Goolsbee, Schmid lay out case for interest rate pause Read More »