Items tagged with FOMC:
News & Updates:
Trump wants to focus on Trade Pact before infrastructure deal; Efforts to create a Do Not Track registry reinvigorated with new “Do Not Track” bill from Senator Josh Hawley (R-MO); The EPA plans to reform the cost-benefit calculations of air pollution on human life; No budget deal was reached between Congressional leaders and the Trump administration on Tuesday; The FOMC released minutes from its April/May meeting.
Reports indicate that President Trump is still considering to circumvent legislatures and build a wall through an emergency declaration; House Democrats set the ground work to chip away at the GOP tax law; EPA announces intent to complete a new rule to boost higher ethanol blend gasoline; Midlevel negotiations between US and China wrap up, with some indication of productive discussion; Minutes from the FOMC reveal ambiguity towards the need for rate hikes.
The Federal Reserve lifted the federal funds rate on Wednesday by a quarter percentage point to a range of 1.5 percent to 1.75 percent.
Faculty Affiliate Susan Wachter comments on how this rate hike affects mortgages. ““I do see a 5 percent and even a 6 percent rate coming, a year or two out,” she says. “And that, amazingly enough, takes us back to normal. We’ve been living in a world where mortgage rates have been incredibly low.”
The likely elevation of San Francisco Fed President John Williams to lead the New York Fed has sparked a degree of public criticism rarely seen in the relatively obscure world of regional central bank chiefs.
Faculty Affiliate Peter Conti-Brown says central bankers and their allies claim “we get the best quality people” for the job, but it is a closed process.
He continues, suggesting one possible reform among several paths would be for Fed banks in search of a new chief to announce a short list of candidates, which could be done without any legal changes to the law that authorizes the Fed.
In an appearance at a Wharton lecture series, Janet Yellen, as interviewed by Faculty Affiliate Jeremy Siegel, discussed the state of the economy, reflected on her time at the Fed, and looked ahead to what challenges her successor Jerome Powell can expect.