By Megan Henney Published July 31, 2019 The Fed FOXBusiness Facebook Twitter Comments Print video The potential impact of the Fed adopting a dovish tone Sit Fixed Income Senior Vice President Bryce Doty on Federal Reserve policy and U.S. trade negotiations with China. Good news for borrowers: The Federal Reserve lowered interest rates during its July policy-setting meeting. Continue Reading Below For the first time in more than a decade, policymakers at the U.S. central bank voted on Wednesday to cut the benchmark federal funds rate by 25 basis points, dropping it to a range between 2 percent and 2.25 percent. But while that decision has been cheered by investors, what does it mean, exactly, for your own personal finances? The interbank lending rate – which policymakers at the U.S. central bank voted to raise four times in 2018 – can affect consumers by increasing borrowing costs. That includes things like auto loan rates and … [Read more...] about The Fed just lowered interest rates: Why you should care
Why fed should raise interest rates
The Federal Reserve is widely expected to trim interest rates on Wednesday for the first time since 2008. A rate cut would likely boost stocks, especially if investors perceived the policy shift as the start of a longer-term easing cycle. Yet while cutting rates is supposed to boost the U.S. economy, this time around individual borrowers and savers could come out as losers.If predicting what the Federal Reserve is likely to do with interest rates this week is easier than usual, predicting how the markets, the economy and your bank account will react remains a tall task. The Fed is widely expected on Wednesday to cut rates for the first time since 2008, when the U.S. economy was reeling following the housing crash. The only real question: How much the central bank will cut its short-term interest rate, which, remember, is the only one that the Fed actually controls. (Longer term interest rates are set by banks and the bond market.) Some think Fed Chairman … [Read more...] about What a Fed move to cut interest rates would mean for your wallet
By Phil Flynn Published July 31, 2019 Opinion FOXBusiness Facebook Twitter Comments Print video Would a Fed rate cut be justified? Vested Chief Economist Milton Ezrati on the Federal Reserve and concerns over U.S. trade tensions with China. Oil traders are on pins and needles Wednesday awaiting the latest Fed decision. To cut rates or not, that is the question. Why do oil traders care? Continue Reading Below It’s not like the Fed can print oil like they print money ... or can they? Well, they sort of can. While most expect that the Fed will cut rates by a quarter point, some expect it could by as much as a half a point. The reality is that whatever decision the Fed makes, it will impact oil prices, gas prices and even the outlook for oil production. MORE FROM FOXBUSINESS.COM OIL RISES ON EXPECTATIONS OF FED CUT, ANOTHER US CRUDE DRAWDOWN ONLINE BANK'S NEW SAVINGS ACCOUNT'S INTEREST RATE 30 TIMES US AVERAGE THE FED IS … [Read more...] about The Fed set to cut rates: Why you should care
Donald Trump last week called on the Federal Reserve to drop rates. He also said the Fed should again do quantitative easing where it would buy a substantial amount of Treasury bonds and mortgage-backed securities. The Fed raised interest rates four times last year, which the president blamed for slowing down the economy.Question: Should the Federal Reserve lower interest rates, as the president recommends? Phil Blair, ManpowerNO: The Federal Reserve should never appear to be bowing to the wishes of any president. The Federal Reserve has to maintain its independence to make changes that they professionally know are advantageous to the country as a whole. It would be especially inappropriate to make any change now that wasn’t clearly validated by facts and the needs of the economy. Kelly Cunningham, San Diego Institute for Economic ResearchNO: The Federal Reserve pushed interest rates to zero and launched successive rounds of quantitative easing to “stimulate the … [Read more...] about Econometer: Should the Federal Reserve lower interest rates?
By Megan Henney Published March 02, 2019 The Fed FOXBusiness Facebook Twitter Comments Print video Fed’s Jerome Powell says the central bank isn’t looking to higher inflation target Former Dallas Federal Reserve advisor Danielle DiMartino Booth and IWF visiting fellow Kelsey Bolar discuss Federal Reserve Chairman Jerome Powell’s testimony on Capitol Hill. President Trump, while delivering a two-hour, wide-ranging speech at the Conservative Political Action Conference, blamed a strong U.S. dollar and interest rate hikes by the Federal Reserve for hurting the economy. Continue Reading Below "We have a gentleman that loves quantitative tightening in the Fed,” he said, referring to Federal Reserve Chair Jerome Powell. “We have a gentleman that likes a very strong dollar in the Fed. So with all of those things -- we want a strong dollar but let's be reasonable -- with all of that, we're doing great. Can you … [Read more...] about Trump, in CPAC speech, says Fed interest rate hikes hurt the economy