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Some manufacturers worry about a return of inflation and high rates

Dec 2, 2024
High interest rates have held back investment in production. They've eased, but firms are wary of the effects of potential tariffs and tax cuts.
Federal Reserve Chair Jerome Powell. How the Fed responds to inflation influences corporate and consumer decisions.
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In a 2nd Trump term, Fed independence would go “out the window,” economist says

Oct 28, 2024
Kai Ryssdal explores what would happen to the global economy if the Federal Reserve lost its autonomy.
Fed Chair Jerome Powell says the process for making interest rate decisions “is always the same.” At meetings, FOMC members ask, “What's the right thing to do for the people we serve?' … It's never about anything else."
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A big change from the Fed’s rate cut: business owners’ mindsets

Oct 8, 2024
Many are more optimistic and open to new projects because their own costs are easing and they expect consumers to spend more.
With the central bank taking a more dovish stance on interest rates, many businesspeople are becoming more optimistic. Above, Federal Reserve Chair Jerome Powell.
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Inflation is coming down, but prices won't

Oct 3, 2024
Generally once prices rise, they don't go back down.
Despite lowering inflation, lowering prices mean other costs for business owners.
Yuki Iwamura/AFP via Getty Images

Central banks started cutting interest rates months before the Fed

Sep 25, 2024
Other central banks were already cutting benchmark interest rates months before the Fed. Here's why the Fed's cut has global impact.
The Fed may have been late to the global trend, but it may be the most influential.
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The Fed cut rates, but the yield on the 10-year T-note is up

Sep 24, 2024
So far, the bond market seems to be doing the opposite of the Fed's plan. But the cut was anticipated, and recession fears have eased.
The Fed's interest rate moves don't translate directly or immediately to the Treasury bond market. Above, Chair Jerome Powell.
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Federal Reserve's path to 2% inflation could be short but tricky

Aug 20, 2024
Because data lags, the current level is uncertain. Plus, key factors like unemployment and the commercial property market are volatile.
The Fed may start cutting interest rates before inflation reaches its 2% target because data lags behind current conditions. It's like looking at the rearview mirror while driving.
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Interest rate moves aren't the only tool in the Federal Reserve's kit

Jul 31, 2024
The Fed is slowing the pace of shrinking its bond holdings, aka quantitative tightening, perhaps before easing its interest rate stance.
The Fed adds to and reduces its holdings of debt securities to influence the economy, along with managing interest rates. Above, Fed chief Jerome Powell.
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What is "maximum employment"?

Jul 29, 2024
And why is there no target number to measure it, as there is with inflation —the Federal Reserve's other mandate?
The Federal Reserve is thought to believe that 4% unemployment equates to its goal of maximum employment. But could the jobless rate go even lower without kicking up inflation? Above, Fed Chair Jerome Powell.
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How a slowing GDP might be good news for the economy

Jul 24, 2024
The Federal Reserve will be looking for signs that the economy is slowing in a manageable way so that it can cut interest rates.
“Sometimes, bad news is good news," says Paul Christopher at the Wells Fargo Investment Institute. "And right now, a slowing economy is that bad news that’s really good news."
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