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As the Fed holds interest rates steady, Powell says "it's a difficult balancing act"

Aug 1, 2024
But some former central bank officials think the Fed's risking a recession.
"That time [for a rate cut] could be in September, if the data support that," Fed Chair Jerome Powell said on Wednesday.
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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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As home prices rise, more deals fall through

Jul 30, 2024
With prices and mortgage rates high, people are "buying at the edge of what they can qualify for," a real estate economist says.
Rich home values and high mortgage rates heap pressure on prospective buyers in the current market.
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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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Many small businesses wobble under weight of high rates

Jul 25, 2024
Small operations have endured pandemic rules, lockdowns and rising costs. Refinancing their loans could be as painful, or worse.
A loan to open a new location before the pandemic "completely destroyed the business," said bakery owner Erin McKenna. She's not the only businessperson struggling with high interest rates and sizable debt.
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Fact-checking the economic claims in Donald Trump’s convention speech

Alan Rappeport, economic policy reporter at The New York Times, examines the former president's assertions about inflation, taxes and energy.
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Back-to-school shopping season has started really early this year.
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For public good, not for profit.

As Americans wait for the Fed to cut interest rates, inflation continues its downward trend.
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How long does it take for interest rate cuts to show up in the economy?

Jul 10, 2024
While economists agree rate cuts won’t instantly juice an economy, there’s really no consensus on just how long that lag is.
Fed Chair Jay Powell took away the proverbial punch bowl with rate hikes. Now that the economy is slowing, “he’s got his hands on the punch bowl, he’s walking around the room with it, and he’s not sure whether to put it down on the table yet,” says Ann Owen, an economist at Hamilton College.
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Federal Reserve, assessing inflation-unemployment link, faces an inflection point

Jul 3, 2024
But some economists say the relationship between inflation and employment is not as black and white as it used to be.
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