Tag Archives: Inflation (Economics)

Federal Reserve officials have had one clear message since President Trump sharply escalated the global trade war this month. Keeping inflation expectations in check as price pressures rise is their No. 1 priority. On Friday, they faced a big setback. A new survey released by the University of Michigan found that as consumer sentiment took another nosedive because of fears …

Jerome H. Powell, the chair of the Federal Reserve, warned that President Trump’s tariffs risk stoking even higher inflation and slower growth than initially expected, as he struck a more downbeat tone about the outlook, despite the economy so far remaining in a “good place.” “While uncertainty remains elevated, it is now becoming clear that the tariff increases will be …

For three years, the U.S. economy has been buffeted by rapid inflation, high interest rates and political instability at home and abroad. Yet it has proved surprisingly resilient, supported by the sturdy pillars of robust consumer spending, a rising stock market, and healthy balance sheets for households and businesses alike. But one by one, those pillars have begun to crack …

Until a few months ago, the Federal Reserve appeared close to achieving something that many doubted was possible. The economy looked on the cusp of a “soft landing,” a situation where inflation was headed back to the central bank’s 2 percent target without a recession. That put the central bank on track to steadily lower interest rates until borrowing costs …

Americans hoping for some relief on inflation suffered a setback in February, as new data showed underlying price pressures intensifying even before the latest escalation in President Trump’s trade war and consumers pulled back on spending. The Personal Consumption Expenditures price index, after stripping out volatile food and energy items, climbed 2.8 percent in February from a year earlier, outpacing …

Americans are increasingly anxious about their jobs and finances as the Trump administration’s trade policies and government cutbacks stoke concern about the economy. Consumer confidence tumbled this month to its lowest level since January 2021, the Conference Board reported on Tuesday, extending a decline that has been underway since shortly after President Trump was elected last fall. The short-term outlook …

The Federal Reserve left interest rates unchanged on Wednesday for a second straight meeting. The March meeting was the central bank’s most direct acknowledgment to date that President Trump’s policies are set to have a real impact on the economy, stoking significant uncertainty about where inflation, growth and — ultimately — interest rates are headed. Here are the takeaways: Tariffs …

The Federal Reserve is expected to keep its key rate steady on Wednesday, after a series of cuts that lowered rates by a full percentage point last year. That means consumers looking to borrow are likely to have to wait a bit longer for better deals on many loans, but savers will benefit from steadier yields on savings accounts. Economists …

Federal Reserve officials are scheduled to release their first set of economic projections this year, alongside their interest rate decision, on Wednesday. Those forecasts will offer a fresh glimpse of the trajectory for monetary policy at a highly uncertain moment for the central bank. Policymakers paused interest rate cuts in January after reducing borrowing costs by a percentage point in …

Inflation eased more than expected in February, a welcome sign for the Federal Reserve as it grapples with the prospect of higher prices and slower growth as a result of President Trump’s trade war. The Consumer Price Index was up 2.8 percent from a year earlier, after rising another 0.2 percent on a monthly basis. That was a step down …