Federal Reserve, inflation
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Fed, Trump and Jerome Powell
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"As a big business owner looking at rates at 1% or 2%, I'm definitely saying, 'what do you know that I don't?'"
Federal Reserve governor Adriana Kugler said the Fed should hold interest rates steady for a while to come, because new trade barriers are likely to spark more inflation in the months ahead. Speaking at a housing conference in Washington,
A new report shows inflation has picked up and analysts believe the prices of many goods increased, in part, because of President Trump’s tariffs. It will play into decisions by the Federal Reserve about when and whether to cut interest rates and comes as the president and his team have ramped up their pressure campaign on Fed Chair Jerome Powell.
One of the top candidates to succeed Jerome Powell at the Federal Reserve said the central bank needs to coordinate more closely with the U.S. Treasury and advocated for a much more inflationary monetary policy.
What is clear is that the current 4.33% median Fed funds target rate remains well above the inflation trend. Even after the acceleration in consumer prices in June, the policy rate is roughly 1.4 percentage points above headline CPI’s one-year change – close to the biggest gap post-pandemic.