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...
As Central Banks Intervene to Calm Markets, Few See Solution
WASHINGTON — The Federal Reserve and the European Central Bank moved Thursday to try to calm financial markets and restore some degree of confidence. It didn't quite work. The central banks are facing a crisis only partly responsive to the medicine they can provide. The Fed sought to ensure that...
Fed Slashes Interest Rate in Response to Coronavirus Worries
WASHINGTON — In a surprise move, the Federal Reserve cut its benchmark interest rate by a sizable half-percentage point Tuesday in an effort to support the economy in the face of the spreading coronavirus. Chairman Jerome Powell noted that the virus “poses evolving risks to economic activity." It was the...
Budget Deficit to Break $1 Trillion Despite Strong Economy
WASHINGTON — An annual congressional report says the U.S. budget deficit is likely to burst through the symbolic $1 trillion barrier this year despite a healthy economy. Tuesday's Congressional Budget Office report follows a burst of new spending last year and the repeal in December of several taxes used to...
Goodbye Robocalls? Probably Not.
NEW YORK — An anti-robocalls measure signed into law Monday by President Donald Trump should help reduce the torrent of unwanted calls promising lower interest rates or pretending to be the IRS, though it won't make all such calls disappear. The new law gives authorities more enforcement powers and could...
California Sues Auto Dealer for False Ads, Loan Documents
SACRAMENTO — California's attorney general sued Paul Blanco's Good Car Company on Monday, leveling accusations of false advertising and lying on loan documents to boost its profits at the expense of its mostly low-income customers. Xavier Becerra's lawsuit comes after a two-year investigation of the dealer known for its prolific...
Stocks Edge Higher; S&P 500 Heads for Another Week of Gains
NEW YORK — U.S. stocks edged higher in midday trading on Friday as solid gains from health care companies offset a sliding technology sector. The S&P 500 rose 0.1% to 3,006 and is within 20 points of its all-time high. The index is headed for a fourth straight weekly gain,...
Powell Says Fed Will Aid Economy, but Trump Escalates Attack
WASHINGTON — Federal Reserve Chairman Jerome Powell signaled Friday that the Fed stands ready to cut interest rates further if the economy needs it but wasn't clear about when or by how much. Powell had barely finished speaking to central bankers in Jackson Hole, Wyoming, before President Donald Trump escalated...
Fed Chairman Signals That Rate Cut Could Happen Soon
WASHINGTON — Chairman Jerome Powell signaled Wednesday that the Federal Reserve is likely to cut interest rates late this month for the first time in a decade in light of a weakening global economy and rising trade tensions. Delivering the central bank's semiannual report to Congress, Powell said that since...
US Adds 224,000 Jobs, Making Fed Rate Cut Less Certain
WASHINGTON — U.S. employers sharply stepped up their hiring in June, adding a robust 224,000 jobs, an indication of the economy's durability after more than a decade of expansion. The strength of the jobs report the government issued Friday could complicate a decision for the Federal Reserve late this month...