Economy News Inflation Settling High Could Pose New Risks For The Fed, Economy

Inflation fight divides Fed as prices stay painfully high

The Fed’s decision was aimed at jump-starting a slowing economy clouded by stubborn sticky inflation and political tension. The Fed’s quarter-point cut to a 3.75%–4.00% benchmark rate makes borrowing ... Read More

Fed's Hammack warns more rate cuts court financial stability risks

Federal Reserve Bank of Cleveland President Beth Hammack warned Thursday that cutting rates further right now carries a wide range of risks for the economy. Read More

Sharp disagreements over economy threaten Federal Reserve interest rate cut

What was once seen as a near-certain cut in interest rates next month now looks more like a coin flip as Federal Reserve officials sharply disagree over the economy’s health and whether stubborn infla ... Read More

Many Fed policymakers at last meeting were opposed to December rate cut

A divided Federal Reserve cut interest rates last month even as policymakers cautioned that lower borrowing costs could risk undermining the fight to quell inflation that has been above the U.S. Read More

Fed’s Bostic Says Inflation Is Still the Clearer and Urgent Risk

Federal Reserve Bank of Atlanta President Raphael Bostic said inflation remains the greater risk to the economy, and he favors keeping rates steady until it is clear the central bank is on track to ... Read More

The Fed’s Recent Rate Decisions Have Been Divisive. It Is Likely to Get Worse.

The last three policy votes have featured some form of dissent, as officials grapple with how to weigh a softening labor market and resurgent inflation. Read More

The Fed Is Increasingly Torn Over a December Rate Cut

As data went dark from the government shutdown, inflation hawks pushed to pause rate cuts at a contentious October meeting. The divide might not end soon. Read More

Fed slashes key rate despite high inflation

WASHINGTON -- The Federal Reserve cut its key interest rate Wednesday for a second time this year as it seeks to shore up economic growth and hiring, even as inflation stays elevated. But Fed Chair ... Read More

How can the Fed be cutting interest rates again with inflation running so high?

Consumer-price inflation is at 3%, well above the Federal Reserve's target Federal Reserve Chair Jerome Powell speaks at a news conference in September. The Federal Reserve is almost universally ... Read More