Monetary Policy

Donald Trump adviser Scott Bessent talks to Barron’s exclusively about his idea for a “shadow Fed chair.”

During his first term as president, Donald Trump was not shy about publicly disparaging Federal Reserve Chair Jerome Powell and his policy decisions.

The central bank cut interest rates at its meeting yesterday in response to cooling inflation, but the real action came at the press conference after the meeting.

The central bank chief asserted that he will seek to balance fighting inflation with supporting the labor market.

Powell also made it clear that he’s not promising to keep the big cuts going.

The fed will make borrowing cheaper for the first time in years.

Out of the vault… The Fed’s reversing course on plans to hike banks’ reserve requirements by 20%. Now it plans to raise the amount of cash banks...

The comments seem to reinforce reporting earlier this year that advisors close to Trump are looking at a host of changes for the Fed.

Some Trump advisers argue that the president should be consulted on interest-rate decisions and have the authority to oust the Fed chair.

Federal Reserve Chair Jerome Powell gives his thoughts on inflation risks, the economy, the timeline for cutting rates, the health of the country’s banks and more. Scott Pelley reports. #news #economy #federalreserve "60 Minutes" is the most successful television broadcast in history. Offering hard-hitting investigative reports, interviews, feature segments and profiles of people in the news, the broadcast began in 1968 and is still a hit, over 50 seasons later, regularly making Nielsen's Top 10. Subscribe to the “60 Minutes” YouTube channel: http://bit.ly/1S7CLRu Watch full episodes: http://cbsn.ws/1Qkjo1F Get more “60 Minutes” from “60 Minutes: Overtime”: http://cbsn.ws/1KG3sdr Follow “60 Minutes” on Instagram: http://bit.ly/23Xv8Ry Like “60 Minutes” on Facebook: http://on.fb.me/1Xb1Dao Follow “60 Minutes” on Twitter: http://bit.ly/1KxUsqX Subscribe to our newsletter: http://cbsn.ws/1RqHw7T Download the CBS News app: http://cbsn.ws/1Xb1WC8 Try Paramount+ free: https://bit.ly/2OiW1kZ For video licensing inquiries, contact: licensing@veritone.com

This lesson focuses on how the FOMC conducts monetary policy to achieve its dual mandate: to promote maximum employment and price stability.

The FOMC opts to keep interest rates as-is. But what does that mean for us?   With the FOMC (Federal Open Market Committee) having their September press conference today, we delve into an essential topic for your students' financial literacy journey: the Federal Reserve's role in shaping personal finances. Let's break down the key topics discussed in today's press conference and explore some engaging discussion questions to use in your classrooms.

Traders digested the latest commentary on the pace of future monetary policy from Federal Reserve Chair Jerome Powell.

Count down to the next Federal Open Market Committee (FOMC) rate hike with the CME FedWatch Tool, based on the Fed Funds target rate. View the tool.

The Federal Reserve constantly reminds us that its decisions are “data-driven” or “data-dependent.” But what does that even mean? And what are the dangers when data loom too large?

How much power does the Fed have? According to Fed Chair Jerome Powell, the limit basically does not exist! New York Times reporter Jeanna Smialek joins the show to talk about her new book Limitless: The Federal Reserve Takes on a New Age of Crisis.For sponsor-free episodes of The Indicator from Planet Money, subscribe to Planet Money+ via Apple Podcasts or at plus.npr.org.

Funds have been moving out of banks, particularly small and medium-sized banks. Much has been going into Money Market accounts, while some has moved to larger banks, and some directly into Treasuries. The outflow from banks has been triggered by widespread fears following the SVB and Signature Bank runs and closures. The Financial Times placed the inflows to Money Market funds at $340 billion (graph below.) "Bank deposits have fallen $363 billion to $17.3 trillion since the beginning of March, Fed data show.

High inflation, fear of recession and disruptions — like the collapse of Silicon Valley Bank — how did we get here? FRONTLINE examines the Federal Reserve's policies and the potential consequences of its record pace of interest rate hikes to try and fight inflation.

Hawkish comments by Federal Reserve Chairman Jerome Powell helped push a closely watched part of the U.S. Treasury yield curve to its deepest inversion since 1981 on Tuesday, once again putting a spotlight on what many investors consider a time-honored recession signal.

Prices are rising. A major bank has collapsed. And the Fed is left holding the hose trying to put out these fires. The question of whether to raise interest rates or not just got even more challenging.For sponsor-free episodes of The Indicator from Planet Money, subscribe to Planet Money+ via Apple Podcasts or at plus.npr.org.

Count down to the next Federal Open Market Committee (FOMC) rate hike with the CME FedWatch Tool, based on the Fed Funds target rate. View the tool.

Jerome Powell’s plan became as outdated as Mason jar decor.

Citing earlier data showing that inflation has reversed the deceleration in late 2022, Powell warned of tighter monetary policy ahead.

Hasbro refuted reports from analysts and players that it is overprinting its Magic: The Gathering card sets.

The Federal Open Market Committee’s monetary policy has expanded beyond changing the federal funds rate to include forward guidance and balance sheet policy. Using these tools may shorten lags in monetary policy transmitting to inflation. Using a proxy funds rate that incorporates tightening from these additional policy tools, we find evidence of a shorter lag in policy transmission to inflation since 2009, though with high associated uncertainty.

Given that the holiday break is upon us, this FOMC-related post is intended to give you, the educator, food for thought if you are interested in diving a bit deeper into issues surrounding the Federal Reserve and their policies.  You never know, this could come in handy if the topic comes up during one of those holiday gatherings....   The Issue As part of this month’s FOMC, members revised their projections for economic indicators (SEP), and their interest rate projections are higher than what the market believes they will be a year from now. This made for interesting questions during the post FOMC press conference and among the talking heads afterward. (For more on the SEP, check out this EconExtra from September that explains it.)   Resources For a thorough review of what came to light in the Powell press conference this week, and how we got to where we are today and where we have been in terms of inflation, take five minutes to watch Gary Cohn on CNBC.

Students learn how the Federal Reserve uses interest rate policies to promote maximum employment and price stability.

This interactive activity reinforces students’ comprehension of the linkages between monetary policy and the economy.