WASHINGTON — Rising U.S. consumer prices moderated again last month, bolstering hopes that inflation’s grip on the economy will continue to ease this year and possibly require less drastic action by the Federal Reserve to control it. Inflation declined to 6.5% in December compared with a year earlier, the government...
Applications for US Unemployment Aid Rose Slightly Last Week
The number of people seeking unemployment benefits rose only slightly last week with the labor market remaining strong despite the Federal Reserve's efforts to cool the economy and hiring. Applications for unemployment aid for the week ending Dec. 24 climbed 9,000 to 225,000, the Labor Department reported Thursday. The four-week average of...
Fed Stresses Its Commitment to Low Rates for the Long Run
WASHINGTON — The Federal Reserve pledged on Wednesday to keep its low interest rate policies in place even well after the economy has sustained a recovery from the viral pandemic. The Fed said in a statement after its latest policy meeting that the improvement in the economy and job market...
Trump Administration Rejects Renewal of Some Emergency Loan Programs
WASHINGTON — Treasury Secretary Steven Mnuchin said Thursday he will not to extend several emergency loan programs set up with the Federal Reserve to support the economy in the midst of the coronavirus pandemic. The decision drew a terse rebuke from the Fed. The central bank said it “would prefer...
US Consumer Borrowing up $16.2 Billion in September
WASHINGTON — U.S. consumers increased their borrowing in September, helped by the first gain in the category that covers credit cards in seven months. The Federal Reserve reported that total borrowing rose by $16.2 billion in September, rebounding after a drop of $6.9 billion in August. The increase included a...
Fed Signals Readiness to Do More for Economy as Virus Rages
WASHINGTON — The Federal Reserve kept its benchmark interest rate at a record low near zero Thursday and signaled its readiness to do more if needed to support an economy under threat from a worsening coronavirus pandemic. The Fed announced no new actions after its latest policy meeting but left...
Fed Sees Rates Near Zero Through 2023, Perhaps Longer
WASHINGTON — With the economy still struggling to recover from the pandemic recession, Federal Reserve policymakers signaled Wednesday that their benchmark short-term interest rate will likely remain at zero at least through 2023 and probably even longer. Fed chair Jerome Powell said at a press conference that while the economy has rebounded...
Fed: Rates To Stay Ultra-Low Even After Inflation Picks up
WASHINGTON — The Federal Reserve announced a significant change Thursday in how it manages interest rates by saying it plans to keep rates near zero even after inflation has exceeded the Fed’s 2% target level. The change signifies that the Fed is prepared to tolerate a higher level of inflation...
Can the US Make Money Out of Thin Air Like AOC Says?
French philosopher Voltaire famously quipped: “If God did not exist, it would be necessary to invent him.” Something similar can be said of modern monetary theory, also known as MMT, because it may be the economy’s only hope to get through the pandemic. Coined by Australian economist Bill Mitchell and...
Fed Sees Dim Economic Outlook as Virus Squeezes Economy
WASHINGTON — The Federal Reserve expressed concern Wednesday that the persistent viral outbreak will act as a drag on the economy and hiring in the coming months and said it plans to keep its benchmark short-term interest rate pegged near zero to help provide support. In a statement at the end of...