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Why the last mile in the Federal Reserve's inflation fight has been uphill

It's taking a longer time for the broader economy to feel the impact of higher interest rates, in part because of debts locked in when rates were lower.
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Offshore wind industry hammered by inflation, interest rates

Jun 17, 2024
Economics has frustrated efforts to expand the turbine fleet and meet clean energy goals. But the industry is adjusting.
Michael Brown, a wind energy executive, says construction plans are becoming more flexible after the disruptions of the last few years. Above, a crane loads turbine blades onto a barge at a Massachusetts port.
Daniel Ackerman/Marketplace

Why is the Fed still so cautious about interest rates?

Jun 13, 2024
Despite the CPI coming in unexpectedly low, the Federal Reserve needs more convincing that inflation is really getting better.
"Consumers change their buying habits, they move from steak to chicken, from the upper shelf down to the lower shelf," said Dan North with Allianz Trade about inflation.
Frederic J. Brown/AFP via Getty Images

As interest rates stay high, that "lag effect" on the economy is playing out

Jun 12, 2024
The Fed's rate hikes were meant to slow the economy and dampen inflation by raising borrowing costs. There's evidence that's happening.
The Federal Reserve kept interest rates at their current elevated levels, Chair Jerome Powell announced Wednesday.
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How the Federal Reserve's inflation fight today compares with the '70s and '80s

Decades ago, the Fed was battling double-digit inflation, and Chair Paul Volcker took aggressive action that drove interest rates way up.
As Fed chair, Paul Volcker aggressively fought raging inflation, driving interest rates far higher than they are today. Above, Volcker in 2005.
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Fed expected to leave benchmark rate unchanged at June meeting. Is that risky?

Jun 10, 2024
The latest jobs report is unlikely to change the Fed's mind when they meet Tuesday and Wednesday.
The latest jobs report is unlikely to change the Fed's mind when they meet Tuesday and Wednesday.
Mandel Ngan/AFP via Getty Images

Why the European Central Bank is cutting interest rates now

Jun 6, 2024
Inflation has eased in Europe as prices fall for electricity and other items that were affected by supply shortages from the Ukraine war.
Christine Lagarde, president of the European Central Bank. Energy prices, lifted by supply shortages caused by Russia's war in Ukraine, played a big role in inflation on the Continent.
Kirill Kudryavtsev/AFP via Getty Images

High interest rates have frozen the real estate market. When will it thaw?

May 23, 2024
Mortgage rates have popped back up above 7%, sales have fallen and builder sentiment is down. 5% would get things moving, per one economist.
Mortgage rates above 7% weigh on the housing market. Buyers can’t afford the high monthly payments, and sellers don’t want to move and give up their cheap loans.
Frederic J. Brown/AFP via Getty Images