Fed policymakers vow to keep interest rates near zero, call for more fiscal help

WASHINGTON (Reuters) – Federal Reserve officials on Wednesday doubled down on efforts to convince investors they will keep monetary policy easy for years to allow unemployment to fall, emphasizing that interest rates will stay near zero until inflation gets to 2% and stays there. The Fed’s governing board made that vow last week at its […]

Fed policymakers double down on vow to keep interest rates near zero

WASHINGTON (Reuters) – Hoping to convince investors they will keep monetary policy super easy for years, two Federal Reserve officials on Wednesday explicitly pledged no rate hikes until inflation gets to 2% and stays there. The Fed’s governing board made that vow last week at its regularly scheduled policy meeting, promising to leave rates at […]

Federal Reserve starts effort to update bank fair lending rules

FILE PHOTO: The Federal Reserve building is set against a blue sky, amid the coronavirus disease (COVID-19) outbreak, in Washington, U.S., May 1, 2020. REUTERS/Kevin Lamarque/File PhotoWASHINGTON (Reuters) – The Federal Reserve Monday kicked off its own effort to update community lending standards for banks. The move by the central bank to solicit input on […]

Fed's Powell: rates to stay low for 'however long it takes'

(Reuters) – Federal Reserve Chair Jerome Powell on Friday said the U.S. jobs report for August was “a good one,” but noted that with gains likely to slow, the central bank is planning to keep its foot on the monetary policy gas pedal for years. “We do think it will get harder from here — […]

U.S. recovery, slow and uneven, is hampered by 'uncertainty': Fed survey

(Reuters) – U.S. business activity and employment ticked up through late August, the Federal Reserve said on Wednesday, but economic growth was generally sluggish as COVID-19 hotspots hampered reopening efforts that fueled an early-summer rebound. The Fed, in its “Beige Book” report, highlighted the uneven rebound underway in the U.S. economy, with some areas such […]

U.S. businesses see modest increase in activity, Fed survey shows

(Reuters) – U.S. businesses saw a modest increase in activity and employment generally increased through late August, a Federal Reserve report showed on Wednesday, but economic growth remained sluggish in some parts of the country. The report highlighted the uneven economic rebound taking place in the U.S. economy, with some areas such as residential real […]

Fed's targeting of higher inflation could backfire, paper suggests

(Reuters) – Targeting higher inflation, as the Federal Reserve suggested it would do in a revamp of its monetary policy strategy on Thursday, could end up slowing growth instead of boosting it unless the U.S. central bank’s message to households and businesses is carefully crafted and conveyed. That’s the conclusion of research presented on Friday […]

Fed warns US faces ‘long road’ to recovery

The head of America’s central bank has pledged to continue support for the US economy for “as long as it takes”. Warning that the US faces a “long road” to recovery, Federal Reserve Chair Jerome Powell said the bank would keep interest rates near zero for the foreseeable future. A policymaker forecast released by the […]

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 than it generally has in […]

Fed to target 2% average inflation, elevates focus on jobs

(Reuters) – The Federal Reserve on Thursday rolled out an aggressive new strategy to restore the United States to full employment and lift inflation back to healthier levels in a world where it now believes that “downward risks to employment and inflation have increased.” Under the new approach, laid out in a fresh statement on […]