Fed, inflation and interest rates
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Amidst a slight cooling in economic activity, inflation has been making decent progress towards the 2% target. Click to read.
Central bank benchmark borrowing costs are now more than 2 percentage points lower in Europe than the US, a divide that has caught the attention of President Trump.
The consumer price index increased 0.1% for the month of May, lower than economists' predictions, with the annual rate reaching 2.4%.
M2 money stock has plateaued since April 2022, with excess liquidity idling in the banking system. Find out the impact of M2 money trends, Fed policies, and clashes on inflation.
Consumer sentiment increased in June for the first time in six months, the latest sign that Americans’ views of the economy have improved as inflation has stayed tame and the Trump administration has reached a truce in its trade fight with China.
President Donald Trump cited new inflation data in continuing to pressure Federal Reserve Chair Jerome Powell to lower interest rates, calling him a "numbskull" but adding that he won't seek to remove him.
Vice President Vance ripped the Federal Reserve and cited President Trump’s criticism of the central bank after prices rose at a slower than expected rate in May. In a Wednesday social media
Most everyone knows about the Federal Reserve’s dual mandate. Set by Congress, the charge for the U.S. central bank is twofold: Create the conditions for stable prices (i.e., low inflation) and maximum employment. (The third mandate—to moderate long-term interest rates—flows naturally out of keeping inflation steady.)