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Monetary Policy

All articles tagged with #monetary policy

economy1 day ago•16 min saved

Fed taps Marc Andreessen to help gauge AI’s policy impact under Warsh

Fed Chair Kevin Warsh has tapped venture investor Marc Andreessen to co-lead a task force on productivity and jobs to evaluate how AI and other technologies should inform monetary-policy judgments, part of Warsh’s overhaul of the Fed. Andreessen joins Stanford economist Charles I. Jones and Microsoft executive Asha Sharma on the leadership slate, as the central bank weighs AI’s potential disinflationary productivity effects and how tech-driven gains could shape policy.

via The Washington Post|

#artificial-intelligence #economy #federal-reserve-system

economy1 day ago•3 min saved

Fed Minutes Reveal Split Over Rates as Inflation Risks Persist

Federal Reserve minutes from last meeting show officials divided on the path for interest rates, with upside inflation risks from AI-driven demand and other shocks; most participants saw keeping rates unchanged this month as justified, but some favored firming if inflation remains elevated, and many projected rates at or below current levels by year-end, highlighting policy uncertainty as Warsh offered no new projections.

via Axios|

#ai-buildout #economy #federal-reserve

business2 days ago•3 min saved

Fed minutes reveal split outlook on rates under Warsh

Fed minutes from the June 16-17 FOMC meeting show officials were split on the rate path, with some favoring higher rates this year and others predicting cuts. The committee kept the federal funds rate at 3.5%-3.75% and the dot plot narrowly favored one hike in 2026 followed by cuts in 2027-2028, while the post-meeting statement was shortened and the easing bias removed as Warsh emphasizes clearer communication.

via CNBC|

#business #economy #fed

economy4 days ago•4 min saved

Fed official backs Warsh-led overhaul of investor communications

A top Federal Reserve official, Chris Waller, endorses Kevin Warsh's plan to overhaul how the Fed communicates with markets, arguing that 2020–21 forward guidance restrained rate decisions and contributed to inflation; Warsh has formed a task force to revamp communications with findings due by the end of 2026, while the Fed has moved away from traditional dot plots and clearer forward guidance in its policy signals.

via Financial Times|

#christopher-waller #economy #federal-reserve

economy8 days ago•7 min saved

Fed Chair Warsh Goes Quiet as Markets Seek Clues

Fed Chair Kevin Warsh has begun his tenure by offering little public guidance, pushing markets to rely on other officials for hints about policy while warning that forward guidance can trap policymakers; investors still price in potential rate moves as inflation remains above target and upcoming data looms, signaling a transition in the Fed's communication approach.

via Politico|

#economy #fed #forward-guidance

business9 days ago•5 min saved

Warsh Signals Data-Driven Pivot in Fed Inflation Strategy

Fed Chair Kevin Warsh outlines a 'new course' for policy that relies on a broader set of inflation indicators and real-time data from multiple sources to guide rate decisions, signaling a shift away from sole reliance on traditional government data and toward a more data-driven, nuanced inflation framework.

via CNBC|

#business #federal-reserve #inflation

business10 days ago•10 min saved

Fed Signals Data-Driven Reboot Under Warsh at ECB Forum

Fed Chair Kevin Warsh used the ECB Forum to push a data-driven, independent revamp of U.S. policy—emphasizing real-time economic metrics, announcing five external-task-force projects, and signaling openness to AI-driven productivity while inflation remains too high; other forum moments included Christine Lagarde stressing shared AI challenges between Europe and the U.S. and markets eyeing a potentially larger rate path depending on the economy.

via CNBC|

#ai #business #fed

opinions11 days ago•22 min saved

Court defies political pressure: Supreme Court blocks Trump from firing a Fed governor

The Washington Post Editorial Board argues that a Supreme Court ruling blocking President Trump from firing Federal Reserve Governor Lisa Cook without due process reinforces the separation of powers, showing that presidential power has limits and preserving Fed independence amid political pressure.

via The Washington Post|

#checks-and-balances #donald-trump #federal-reserve-system

economics12 days ago•3 min saved

Policy discipline urged as AI boom meets debt and market fragility

The BIS warns that inflation, rising financial vulnerabilities and record public debt—amid AI-driven investment and evolving non-bank risk—pose growing threats to global growth. It urges coordinated policy action to maintain price stability, shore up financial stability beyond banks, and pursue fiscal sustainability and structural reforms; delaying steps could raise costs and worsen future trade-offs.

via Bank for International Settlements|

#ai #economics #financial-stability

economy13 days ago•20 min saved

Dollar climbs to 13-month high on AI boom and Fed expectations

Global investors pushed the dollar to a 13-month high on the allure of the U.S. AI boom and the prospect of higher interest rates, with bets on a Fed move later this year overshadowing concerns about Trump’s policymaking.

via The Washington Post|

#central-bank-interest-rates #economy #federal-reserve-system

economy14 days ago•3 min saved

Kashkari Signals a Single Rate Hike by Year-End

Minneapolis Fed President Neel Kashkari said he now expects one rate increase by year-end, revising his prior view of a year-end rate cut. He notes inflation remains above the Fed’s 2% goal (headline 4.1%, core 3.4%) and argues supply-driven pressures—from tariffs to energy disruptions and heavy investments in data-center infrastructure—could keep prices elevated, making a cautious rate hike likely depending on incoming data after the Fed held rates steady.

via CNBC|

#economy #fed #inflation

economy14 days ago•5 min saved

Patience Over Pressure: Trump backs Warsh as inflation hits 4%

With inflation at 4.1% in May, the Trump administration is easing pressure on Fed Chair Kevin Warsh and signaling patience on rate cuts, treating policy decisions as Warsh’s to make rather than demanding immediate moves. White House officials say the shift reflects personnel dynamics more than data, while several advisers have tempered their calls for quick cuts. Markets still price in higher rates later this year, and the inflation outlook remains uncertain amid energy prices and geopolitical tensions.

via CNBC|

#economy #fed #inflation

business17 days ago•33 min saved

Greenspan’s Shadow Returns as Warsh Embraces the Maestro’s Silence

The Bulwark’s Catherine Rampell revisits Alan Greenspan’s paradoxical legacy—economic expansion paired with cryptic, less transparent policy—while noting Kevin Warsh’s early moves as Fed chair echoing Greenspan’s evasiveness. Rampell contrasts Greenspan’s era with Bernanke’s push for transparency and warns that Warsh’s prompt to shorten statements and skip the dot-plot signals could weaken accountability and confuse markets as rates trend higher, not lower.

via The Bulwark|

#bernanke #business #fed

business18 days ago•1 min saved

Fed Mourns Alan Greenspan, Architect of Stability

The Federal Reserve announced the passing of former Chair Alan Greenspan (1987–2006), praising his disciplined monetary policy, achievement of price stability, and lasting influence on the Fed and economics, while extending condolences to his family.

via Federal Reserve (.gov)|

#business #federal-reserve #greenspan

business18 days ago•80 min saved

Warsh’s Quiet Fed Could Trigger Market Volatility and Higher Rates

The piece outlines Kevin Warsh’s push for dialing back the Fed’s forward guidance and transparency, arguing markets should rely more on data than central-bank signaling. If adopted, this approach could heighten market volatility and push rates higher as investors adjust without explicit Fed instructions, contrasting with Greenspan-era communication and Powell’s post-meeting guidance. Economists warn it could backfire during crises and shift influence within the Fed, depending on how quickly and where such a shift is implemented, including potential changes to quarterly projections and press conferences.

via AP News|

#business #federal-reserve #financial-markets