Category: fox-business/politics/the-fed

Credit card interest rates predicted to fall, but debt remains high

Predictions abound for credit card interest rates in the coming months. Like many interest rates, it’s likely credit card interest rates will drop if the Fed starts cutting rates. Credit card APRs have risen steadily for the last 22 months, landing at 22.75% in November 2023, Federal Reserve data showed. Rising rates were largely attributed to the Fed’s frequent rate hikes throughout the year. Rates…

Cruz, GOP senators double down on anti-central bank digital currency legislation

EXCLUSIVE: Senate Republicans are determined to restrict the Federal Reserve’s ability to create a so-called central bank digital currency, setting the stage for making the debut of a digital dollar an issue for the 2024 presidential campaign, FOX Business has learned. Conservative lawmakers have been doubling down on their opposition to a central bank digital currency (CBDC), arguing the federal government could weaponize the technology…

Interest costs on US national debt set to exceed defense spending this year

The rapid increase in interest rates over the past year could cause some collateral damage to the U.S. government’s finances.  That is because as interest rates rise, the federal government’s borrowing costs on its $34.24 trillion in debt will also increase. Interest payments on the national debt are the fastest-growing part of the federal budget – and are poised to leapfrog both Medicare and defense…

Fed’s Barr says regulators more aggressive with banks, focused on interest rate risk

The Federal Reserve’s top supervisory official said Friday that bank regulators are flagging problems at banks at a higher rate over the past year and are conducting additional exams at firms facing large unrealized losses. Federal Reserve Vice Chair for Supervision Michael Barr added that bank examiners are “closely focused” on how firms are managing commercial real estate risk as that sector faces post-pandemic pressure….

Wholesale inflation accelerates more than expected in January

Inflation at the wholesale level rose much more than expected in January, underscoring the challenge of taming price pressures within the economy.  The Labor Department said Friday that its producer price index, which measures inflation at the wholesale level before it reaches consumers, jumped 0.3% in January from the previous month. On an annual basis, prices remain up 0.9%. Those figures are both higher than…

Dow plunge accelerates, on pace for worst day of 2024

U.S. stocks tumbled in a broad sell-off after a hotter-than-expected inflation report may jeopardize the Federal Reserve’s plan to cut interest rates. The Dow Jones Industrial Average fell more than 600 points during intraday trading, or 1.7%, and is on pace for the worst session in 11 months.  The benchmark has erased almost half its gains for 2024 with the 10-year Treasury yield nearing 4.3%. …

January inflation breakdown: Where are prices still rising the fastest?

Inflation rose faster than expected in January as an increase in the cost of rent and food kept prices elevated for millions of U.S. households.  The Labor Department said Tuesday that the consumer price index, a broad measure of the price of everyday goods including gasoline, groceries and rent, rose 0.3% in January from the previous month. Prices climbed 3.1% from the same time last…

Inflation rises faster than expected in January as high prices persist

The Labor Department said Tuesday that the consumer price index, a broad measure of the price of everyday goods including gasoline, groceries and rent, rose 0.3% in January from the previous month, more than expected. Prices climbed 3.1% from the same time last year, which also came in above the 2.9% expectation from Refinitiv economists. This is a developing story. Please check back for updates….

Monetary, fiscal policy divide pose risks: NABE

Just as inflation eases and more economists bet on a soft landing for the U.S. economy, a new risk is emerging, a policy push and pull.  The divide between fiscal and monetary policy is increasingly worrying America’s most noted economists.  “Panelists are more optimistic about the outlook for the domestic economy,” added National Association of Business Economics (NABE) Policy Survey Chair Sam Khater, chief economist…

US job growth unexpectedly jumps in January as economy adds 353,000 new positions

U.S. job growth unexpectedly surged in January, underscoring the resilience of the labor market even in the face of high interest rates and stubborn inflation. Employers added 353,000 jobs in January, the Labor Department said in its monthly payroll report released Friday, easily topping the 180,000 gain forecast by Refinitiv economists. The unemployment rate held steady at 3.7%, against expectations for a slight increase. Wage…

January jobs report expected to show that hiring slowed last month

All eyes will be on the January jobs report when it is released Friday morning, as investors look for clues about the labor market’s health in the face of higher interest rates and still-high inflation. The Labor Department’s high-stakes January payroll report, due at 8:30 a.m. ET, is projected to show that hiring increased by 180,000 last month and that the unemployment rate inched higher…

Private sector job growth cools sharply in January to 107,000, worse than expected: ADP

Hiring by U.S. companies slowed more than expected than expected in January, a possible sign the labor market is finally slowing in the face of higher interest rates, according to the ADP National Employment Report released Wednesday morning. Companies added 107,000 jobs last month, missing the 145,000 gain that economists surveyed by Refinitiv predicted. The weaker-than-expected report comes in the wake of an aggressive tightening…

Fed’s favorite inflation gauge rose 0.2% in December

An inflation measure closely watched by the Federal Reserve rose in December after declining the previous month as high prices continued to weigh on millions of Americans. The personal consumption expenditures (PCE) index showed that consumer prices rose 0.2% from the previous month, according to the Labor Department. On an annual basis, prices climbed 2.6% – unchanged from the previous month. The figures were both…

Consumers are propping up the US economy, but they’re going into debt to do so

Americans’ commitment to spending, even in the face of high inflation and interest rates, has kept the U.S. economic engine running for the past two years, but that may finally be coming to an end.  Households are draining their savings and racking up a historic amount of credit card debt, which could finally bring to an end the post-COVID-19 spending spree. “Americans with jobs and…

US economy grew faster than expected during the fourth quarter

The U.S. economy grew at a faster pace than expected at the end of 2023, underscoring its resilience even in the face of still-high inflation and steep interest rates. Gross domestic product, the broadest measure of goods and services produced across the economy, grew by 3.3% on an annualized basis in the three-month period from October through December, the Commerce Department said in its first…

US economic growth likely slowed at the end of 2023

The U.S. economy likely ended 2023 on solid footing, but momentum is expected to have cooled from earlier in the year as consumers battle high inflation and interest rates. Economists expect the Commerce Department’s first reading of gross domestic product, the broadest measure of goods and services produced in the country, to show the economy expanded by 2% on an annualized basis in the three-month…

Newsbreakforum