Fed: Rates to stay ultra-low even after inflation picks up
The change means the Fed is prepared to tolerate a higher level of inflation than it generally has in the past. Rather, Powell said, the economy has changed in a way that allows the Fed to keep rates much lower than it otherwise would without igniting price pressures. The renewed emphasis on low rates to support the economy comes at a perilous time. Economists said that while the policy changes had been expected, they amounted to a far-reaching shift. Right now, the Feds preferred inflation gauge is hovering at a sub-1% annual rate, well below its 2% target.
Fed sees dim economic outlook as virus squeezes economy
WASHINGTON Federal Reserve Chair Jerome Powell warned Wednesday that the viral epidemic is endangering the modest economic recovery that followed a collapse in hiring and spending this spring. As a result, he said, the Fed plans to keep interest rates pinned near zero well into the future. That observation was an acknowledgement that uncertainty about when the health crisis might be solved has complicated the Feds ability to set interest rate policy. Few investors expect the Fed to hike interest rates for years to come. Some Fed watchers expect no rate increase until 2024 at the earliest given the bleak outlook for the economy and expectations of continued ultra-low inflation.
Fed to keep buying bonds and sees no rate hike through 2022
And it says nearly all the Fed's policymakers foresee no rate hike through 2022. The Fed has cut its benchmark short-term rate to near zero. Fed officials estimate that the economy will shrink 6.5% this year, in line with other forecasts, before expanding 5% in 2021. It foresees sees the unemployment rate at 9.3%, near the peak of the last recession, by the end of this year. The Fed could specify how long its prepared to keep short-term rates near zero and how much bond buying it will do to hold down longer-term rates.
Trump impeachment inquiry not a problem for the Fed: Bullard
FILE PHOTO: James Bullard, President of the St. Louis Federal Reserve Bank, speaks during an interview with Reuters in Boston, Massachusetts August 2, 2013. REUTERS/Brian Snyder(Reuters) - St. Louis Federal Reserve Bank President James Bullard said on Wednesday he does not expect the impeachment inquiry into President Donald Trump to affect how the Fed conducts monetary policy. Bullard said in an interview with CNBC that Fed officials are used to dealing with political uncertainty as a backdrop to policy deliberations. Bullard called the trade war with China the biggest issue in the economy. He said the dispute became more pernicious than expected and added it could be a while before agreements are reached.feeds.reuters.com
Feds charge three in biggest-ever bank customer data theft
Three hackers have been federally charged for a string of cyberattacks against JPMorgan and other financial institutions, in what's being called the largest U.S. financial data hack in history. CBS News justice reporter Paula Reid joins CBSN to discuss.cbsnews.com
01/14: Feds foil plot to attack U.S. Capitol; Historic free-climb of Yosemite's El Capitan
01/14: Feds foil plot to attack U.S. Capitol; Historic free-climb of Yosemite's El Capitan An American supporter of ISIS is under arrest for allegedly planning to bomb the U.S. Capitol and shoot members of Congress. Investigators made the arrest Wed. outside a gun range in Cincinnati, Ohio; Kevin Jorgeson and Tommy Caldwell are expected to reach the top of the cliff Wednesday. The duo will make history as the first to free-climb the Dawn Wall. John Blackstone reports from Yosemite National Park.cbsnews.com
MoneyWatch: Graco strollers under recall; Feds pressure Chrysler over Jeep fix
MoneyWatch: Graco strollers under recall; Feds pressure Chrysler over Jeep fix Graco is recalling 11 models of strollers because a hinge can severely pinch a child's fingers. Also, the government is asking Chrysler to speed up fixing Jeep models that were recalled in 2013. Jill Wagner reports on the day's top MoneyWatch headlines.cbsnews.com
Feds raid Los Angeles fashion district, confiscate millions in cash
Feds raid Los Angeles fashion district, confiscate millions in cash Feds raided dozens of businesses in the downtown Los Angeles fashion district for laundering money for Mexican Drug Cartels. Law enforcement seized at least $65 million. KCAL's Kristine Lazer reports.cbsnews.com
MoneyWatch: Homeowners receive money from Feds' mortgage settlement; Crumbs crumbles
MoneyWatch: Homeowners receive money from Feds' mortgage settlement; Crumbs crumbles Millions of homeowners who suffered mortgage misconduct have received money from a government settlement with 13 big banks. Also, Crumbs Bake Shop has shut all of its stores. Jill Wagner reports on the day's top MoneyWatch headlines.cbsnews.com