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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 holds steady on rate hikes for now

Sep 21, 2023
Announcing its decision yesterday, the Fed also signaled it could hike rates one more time before year's end.
In his news conference on Wednesday, Fed Chair Jerome Powell acknowledged that there are economics headwinds that could make a soft landing more difficult.
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What's Fed Chair Powell trying to tell us about future interest rate hikes?

Jun 21, 2023
Jerome Powell has stuck to the same script on whether more interest rate increases are coming — but that script has a cliffhanger ending.
Federal Reserve Chair Jerome Powell testifies before the House Financial Services Committee on Wednesday.
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Some hospitals struggle as borrowing gets more expensive

May 8, 2023
Cash-strapped rural and medium-size hospitals are less prepared to absorb higher interest rates.
“Wages and labor pressures are increasing in hospitals unless they're able to find ways to cut back on staff or cut other expenses," said Krutika Amin of KFF.
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March jobs report shows more signs of cooling labor market

May 2, 2023
The number of openings decreased for the third straight month in March, but it’s still historically high.
While there were still nearly 9.6 million job openings in March, that's the third straight month of decreases.
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Fueled by federal dollars, commercial construction is booming

May 1, 2023
The resilience of this usually interest rate-sensitive sector makes the Fed’s goal of taming inflation that much harder.
Federal dollars dedicated semiconductor chip manufacturing and battery production is helping lift construction worker wages.
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Weakening dollar could feature in earnings reports this week

Apr 24, 2023
The dollar has lost value against major currencies since last summer. This means U.S. products are cheaper abroad, but importing is more costly.
The dollar’s value had been falling since the latter part of 2022.
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Why some countries' central banks follow the Fed's lead

Mar 23, 2023
The U.S. Federal Reserve coordinates some operations — sometimes even interest rates changes — with other central banks. Here's how that works.
The Federal Reserve sometimes coordinates interest rate changes with other countries because in a global economy, it can’t achieve low inflation and maximum employment alone.
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All eyes are on the Federal Reserve's next move in this "wobbly" economic moment

Mar 20, 2023
The inflation threat calls for one type of action, and the banking turmoil calls for another. How will the Fed respond?
Chairman Jerome Powell and other policymakers at the central bank will reveal their interest rate decision Wednesday. The Fed is also taking steps to stabilize the condition of regional banks and protect depositors.
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